Building Contractors Public Liability Insurance


A public liability insurance policy , or PL insurance for short, covers awards of any damages that will be provided to a member of the public due to a personal injury or to a damage to his or her property that has been caused either by you or by your business.  This form of general insurance offers financial cover or protection for a policy holder for any damages that are payable to a third party in cases of disease, injury, or deaths. This form of liability insurance also provides cover for any damages that a business will cause to a property of a third party.

A PL insurance policy is required for business owners, transporters, or users of various substances that are considered to be very hazardous and dangerous to the environment. However, this type of liability insurance cover does not cover intentional damages or contractual liabilities. Before you purchase this kind of liability insurance policy, it pays to get several quotes from different insurers first in order for you to make the wisest choice and get a policy from a reputable and reliable insurance company.

A PL insurance policy is something that you should definitely consider getting if any member of the public, or customers, will come into the premises of your business or if you go to the premises of their business. PL insurance, also commonly referred to as a business liability insurance policy, covers awards that are related to the following:

  • Legal Fees
  • Expenses
  • Hospital Treatment, which includes any ambulance costs that the NHS will claim from you

How PL Insurance Works

The cost of the insurance that you will get is known as the insurance policy premium. The monthly premium that you will have to pay for is the price that the insurer will charge you in order for your business to be accepted. The premium that will be charged by the insurer will be based on several factors. The factors include the type or the nature of the business that you are running as well as the insurance provider’s own experience when it comes to providing this type of cover within the sector of your business.

How the Premiums for a PL Liability Insurance Policy is Determined

For most of the small to medium size businesses, the insurer will use an average rate, or a book rate to determine how much the insurance policy holder would have to pay for monthly. This average rate or book rate is based on the other claims that the insurer has already paid out to businesses that are similar to yours. The insurer will then use this average rate to calculate the monthly premiums that you would need to pay for using a factor that will reflect the amount of activity that your business is undertaking.

As mentioned above, the monthly premiums that you would have to pay for your PL insurance will be based on the type of business that you are running. The premiums will also be rated on an estimate for your business’ level of activity. For most, this factor is called as the “turnover,” however, there are many other factors that may be used. For example, if you are running a hotel business, the premiums that you will have to pay for monthly for your PL insurance may be calculated based on the number of beds. This will then reflect the amount of guests that you provide your services to.

Important Facts about a PL Insurance Policy that you Need to be Aware Of

Before you get a PL insurance policy from the first insurer that you encounter, there are several things that you first need to take time to learn about. These facts about PL insurance policies that you need to be aware of include the following:

  • The payment for the claims made is usually not handed directly to the policy holder of the PL insurance, but to the person who was injured or who has suffered from any damages caused by the business of the policy holder.
  • An insurer can defend a PL insurance policy holder if a claims lawsuit is filed against the policy holder.
  • This type of insurance policy is very important especially if your business involves the exposure of customers to potential risks and dangers.
  • Clients, associates, and businesses are already becoming more and more knowledgeable about the importance of this type of insurance policy. A lot of them want to ensure that both of the parties involved in a business transaction are insured with this type of insurance cover before they go into a project with one another. Therefore; in order for your business to become successful, getting a PL insurance policy will increase your chances.

Tip to Finding the Cheapest PL Liability Insurance Policy

If you are looking for a cheap public liability insurance policy, then one of the best ways that you can do is to get several quotes from different insurance providers of this type of cover. Once you have several quotes from different insurance policy providers, compare the monthly premiums and the amount of cover you will be provided with each policy. Since your aim is to purchase a cheap liability insurance that will provide you with the right amount of cover, then you should compare public liability insurance policies provided by different insurers in order to find out which one is the most affordable.

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