how much does public liability insurance cost

Public liability insurance for small businesses typically starts from around £5–£6 per month in the UK, with many small firms paying roughly £70–£120 per year for basic cover.

How much does public liability insurance cost?

Public liability insurance doesn’t have a single “standard” price, because it’s priced on risk – but we can talk about typical ranges and what most small businesses actually pay.

In the UK in early 2026, many insurers advertise from about £5–£6 a month for lower‑risk, smaller businesses with modest cover limits (for example, up to £2 million). Comparison and market data suggest that a “typical” small business policy comes out at around £100 per year , though plenty of businesses will pay less or more depending on their situation.

You’ll also see similar low entry prices in some other markets, where small, low‑risk businesses might pay the equivalent of around £20–£50 per month for broader general/public liability cover, while higher‑risk trades can pay a few hundred per month.

Quick Scoop (core facts)

• Many UK providers quote “from about £5–£6 per month” for public liability.

• Market data shows a median or typical annual price just over £100 for many small businesses.

• These “from” prices usually assume:
  • Low‑risk activities (e.g. office‑type work, light services).

* No history of big claims.

* Standard cover limits like **£1–£2 million**.

• Higher‑risk work (construction, trades, events with crowds) can be several times higher than the headline “from” price.

• In broader small‑business liability markets, premiums often range from about £20–£50/month for low‑risk up to £300+/month for higher‑risk operations with higher limits.

Think of the headline “from £X” as the floor , not the average.

What really decides your price?

Insurers look at a few big levers when they decide how much to charge you.

• Type of business (risk level)
  • Manual or physical work (trades, construction, events, hospitality) is seen as higher risk than office or purely online work.

* More public interaction and on‑site work usually means a higher chance of injury or property damage claims.

• Turnover and size
  • Higher revenue, more customers, and more jobs typically mean more exposure to potential claims, so premiums go up.

• Level of cover (limit of indemnity)
  • Common UK limits: £1 million, £2 million, £5 million, and up to £10 million of cover.

* Stepping up from, say, £2 million to £5 million or £10 million adds cost, sometimes significantly.

• Location
  • Busy urban areas can have higher claim costs than quieter regions, so city businesses can pay a bit more.

• Claims history
  • Recent or frequent claims usually push your premium higher because you’re statistically more likely to claim again.

• Contract requirements
  • Some clients (especially councils, big corporates, construction main contractors) may demand £5m, £10m, or even £20m public liability , which can dramatically increase the premium compared with a basic small‑business limit.

Typical price examples (illustrative)

These are not quotes, just examples to show where businesses often land in the market.

[3][7][5] [1] [8][9] [10][5][9] [2][6]

Business type (illustrative)	Risk level	Common cover limit	Indicative cost range
Freelance consultant working from home	Low	£1–£2 million	From about £5–£10 per month for public/general liability in some markets.
Domestic cleaner / sole trader	Low–medium	£2 million	Real‑world examples show figures under £20/month in some UK cases.
Small shop / café	Medium	£2–£5 million	Often somewhere around £100–£300 per year, depending on turnover and location.
Tradesperson (e.g. electrician, builder)	Medium–high	£5–£10+ million	Can start low but climb to several hundred per year, more with very high limits or large turnover.
Business needing £20m+ cover for contracts	High	£20 million	Significantly higher than basic small‑business cover; exact figure depends heavily on industry and claims history.

How 2025–2026 trends affect cost

Recent years have seen a mix of rising costs in some areas and aggressive “from £X” marketing in others, especially online.

• Competitive online quotes
  • Digital insurers and comparison tools advertise very low entry prices (like from ~£5 a month) to attract small business owners who want fast cover.

• Inflation and claim costs
  • In many markets, rising repair costs, medical costs, and legal fees have put upward pressure on liability premiums.

• Higher contract requirements
  • More contracts, especially in construction or government work, now demand £10m+ or £20m public liability, which pushes some small outfits into higher premium brackets than they needed before.

Overall, the “headline” figures look very low, but once you add realistic limits and your business specifics, you may find you sit somewhere in that £100–£300 per‑year band (or higher if you’re a contractor or event business).

Mini “forum‑style” viewpoint: why some quotes feel expensive

“I’ve got $5m cover now but my industry wants $20m. I’m just a one‑person business – why is my fee so high?”

That kind of post pops up regularly in insurance forums. Someone has a small business but needs a very high limit to satisfy a client, and they’re surprised that the upgrade suddenly makes the premium jump. It’s not that the insurer thinks they’re huge; it’s that the worst‑case scenario they’re insuring against has quadrupled (from $5m to $20m), and the premium tracks that bigger potential payout.

You also see people confused about backdating or mid‑term changes, where the insurer reprices based on the new limit and the remaining policy term. From the outside it feels like a random fee; from the insurer’s side it’s just the math of risk and time.

How to estimate your own cost (practical steps)

To get a realistic idea for your business, you can walk through a short checklist.

1. Pin down your risk profile
   • What exactly do you do, and where? (office, clients’ premises, public spaces, construction sites).

 * How much contact do you have with members of the public or client property?

2. Decide on a sensible cover limit
   • For some light‑risk services, £1–£2m may be common; for trades, larger contracts, or public venues, £5m–£10m or more can be standard.

 * Check contract or client requirements; they may specify minimum limits.

3. Gather your key business details
   • Turnover, number of employees, locations, and any prior claims.

 * Insurers and brokers will use this to refine their pricing.

4. Use at least two or three quote sources
   • Direct insurers that advertise low “from” prices.

 * Comparison sites that show typical median costs and multiple options.

 * A broker if your work is higher‑risk or unusual.

5. Adjust extras and deductibles
   • Sometimes you can choose a higher excess (deductible) to reduce your premium; just make sure you could afford that amount if you had a claim.

SEO meta description

Public liability insurance for small businesses often starts from about £5–£6 a month in the UK, with many firms paying around £100 a year, depending on risk, cover level, and industry.

Bottom note: Information gathered from public forums or data available on the internet and portrayed here.