How are Public Liability Insurance Premiums Calculated?

Rhino Trade Insurance 07 May 2023

How much should Public Liability Insurance cost? Well, how long is a piece of string?

Seriously, though, the cost of Public Liability Insurance isn’t set in stone because there are many different variables which affect the cost. Understanding what aspects go into the price of your insurance is essential to avoid spending too much on your Public Liability Insurance policy.

You'll need to make various decisions whilst on the hunt for cover, including what level of insurance you want to add. Remember, calculating the amount of Public Liability your business requires will be based on your specific needs, so there’ no one-size-fits-all approach.

Every trade and business is unique, and the cost of insurance cover can vary depending on your business' size and type, its history, and the level of risk involved with your line of work.

Today, we'll discuss what influences the price of your insurance and why you should shop around.

What determines how much Public Liability Insurance costs?

Our expert insurance wizards, available by chat or telephone (or our instant online quote engine if you’d prefer), can serve up an oven-ready policy and price within minutes. To understand what will impact the cost of insurance, you should consider the following points:

The risk associated with the job

As with every insurance policy, the price of your business's protection is based on how much risk needs to be covered. As a tradesperson, there is, unfortunately, a relatively high chance of having an accident or causing damage, resulting in legal action being brought forward by a third party. Because of this, policy prices will vary depending on your line of work.

The trade you work in

For example, working as a Plumber, Electrician, or Handyperson means frequently interacting with customers, clients, and suppliers. This increases the possibility that any of these parties could suffer an incident that results in a claim. Even if you work from home and have clients visit you for meetings, there’s still a risk of something happening while interacting with others, so your business should have cover in place.

Your companies size/ structure

The size and scope of your trade business can determine the cost of your Public Liability Insurance. For example, having several employees that regularly work on building sites that come into contact with customers can increase your risk factor, meaning you’ll need more insurance in place.

Location of your company

While it is less likely that this affects the price of your Public Liability Insurance, certain geographical factors may affect your level of risk and, thus, the price of your cover, so it's always worth bearing in mind as your insurer will want to know this information.

Your businesses revenue

A high turnover rate signifies more customers and interactions with vendors, contractors, and the general public, which can increase the insurer's level of risk. When getting a quote, it's critical to disclose your turnover; otherwise, you can find yourself struggling if you ever need to make a claim.

Any history of claims

Any insurance provider will consider your past claims because they may indicate a higher likelihood that you will claim in the future. Ultimately, it could suggest your business is at a higher risk overall. Accidents can occur easily in the trade industry, but it's crucial to reduce the likelihood that they will. A great way to avoid problems arising is by implementing a comprehensive risk management procedure.

The excess you pay

The excess of your insurance can impact your premium price; however, with Rhino Trade Insurance, this isn't the case. Often companies allow you to choose your level of excess, whereas Rhino has a standard excess for each policy.

A popular add-on is our Excess Protect Insurance which covers you should you need to make a claim on your Public Liability Insurance.

How to calculate your public liability insurance

There are many different insurance providers, all of which provide comparable services with complex terminologies and varying details.

Depending on the danger your work poses to customers and their property, your business may need a certain amount of Public Liability Insurance. To estimate your needs, you can refer to any contracts you hold, any trade body regulations you must adhere to, and general industry standards.

When shopping around for quotes, you may want to consider worst-case scenarios in your line of work. That means you could explore holding sufficient Public Liability Insurance to cover a claim for injury or property damage that is out of the ordinary. It all depends on how risk-averse you are, but remember, if an accident happens and you don't hold enough insurance, you risk the entire livelihood of your business.

For instance, If you purchased £1 million in cover for your trade business, this is the most we could pay out in a claim. If your compensation claim incurs extra costs like medical expenses and lost wages that take you above the policy level, then issues could arise, and you may end up in financial difficulty.

At Rhino Trade Insurance, we aim to make insurance as quick and pain-free as possible. Calling our specialist insurance experts or getting an instant quote on our website will ensure you receive the correct insurance at the very best price. We offer three levels of cover concerning Public Liability for trade businesses: £1 million, £2 million and £5 million. Which level of protection you choose will determine the price of your Public Liability cover, along with your answers to our basic questions.

What other trade insurance policies can you take out?

As a tradesman or woman, your risks can expand beyond Public Liability. When working around customers and in the public domain, you may require additional insurance types to help your business survive a raft of claim types. At Rhino, you can add any of these to our Public Liability policies:

Why choose Rhino Trade Insurance?

Rhino Trade Insurance can help you select the appropriate level of Public Liability Insurance and will offer advice on any add-ons you might require for your specific field of activity.

Our team of skilled trade insurance professionals can provide unmatched knowledge and experience as an insurer specialising only in the trades. We tailor our insurance to your company's demands and are always looking for the best ways to keep our prices low and our cover of the highest calibre.

Get in touch with Rhino Trade Insurance on 0116 243 7904 or visit our website for further details. You can easily get a price using our convenient online quote engine.