Written by Michael Foote, Insurance Expert
Public liability insurance is a key form of business cover that protects you if a third party claims they were injured or their property was damaged because of your work. Many businesses, particularly those working on-site or in public spaces, are asked to hold at least £5 million of cover, but how much does that actually cost?
Read on for approximate estimates or for an accurate cost complete our short quote form here to get no-obligation advice from a PL insurance specialist, tailored to your exact requirements.
What Affects the Cost of £5M Public Liability Cover?
The cost of public liability insurance depends on your specific business, but some of the main factors that influence the price include:
- Your trade or profession: Higher-risk industries like scaffolding, roofing or motor trade work typically cost more
- Business size and turnover: A larger business often means more potential risk, so higher premiums
- Claims history: If you’ve had previous claims, insurers may charge more
- Level of interaction with the public: If you’re regularly working in homes, shops, public spaces, or with customers on-site, you’ll be seen as higher risk
- Additional cover: If you include employer’s liability, tools cover or professional indemnity, this increases the total cost
Typical Cost of £5 Million Public Liability Insurance
Below are some ballpark costs based on current UK market rates:
| Type of Business | Typical Annual Cost (Estimate) |
|---|---|
| Mobile hairdresser or cleaner | £60 – £100 |
| Sole trader electrician or builder | £100 – £200 |
| Small motor trade business | £150 – £300 |
| Medium construction firm | £300 – £800 |
| High-risk trades (e.g. scaffolders) | £700+ |
These are rough estimates. Quotes vary widely between insurers and each business is rated individually based on their unique risk factors.
Do You Always Need £5M Cover?
You may not always need £5 million cover, but it’s commonly required when:
- Working for local councils or government contracts
- Accessing certain commercial premises
- Subcontracting under another contractor
- Taking part in public events or exhibitions
Some businesses choose it voluntarily to reduce risk exposure and show professionalism.
How to Get the Best Price
To keep costs down:
- Shop around and compare providers (not all rate industries the same)
- Only include optional extras if needed
- Maintain a clean claims record
- Consider paying annually rather than monthly (monthly plans often include interest)
