Public Liability Insurance Cost for Your Business

The cost of public liability insurance for your business is a crucial consideration. On average, a small business can expect to pay between $200 and $1,000 per year for public liability insurance.

The type of business you have will significantly impact the cost of your public liability insurance. For example, a construction company may pay more than a retail business due to the higher risk of accidents and injuries.

The level of coverage you choose will also affect the cost of your public liability insurance. The more coverage you select, the higher your premiums will be.

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Public liability insurance costs can vary, but AXA customers pay from £5.29 per month, or £64 per year.

The cost of your policy will depend on various factors, which we'll explore further in this article.

AXA customers pay £5.29 per month, or £64 per year, for public liability insurance.

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The size of your business can significantly impact the premium of your Public Liability policy. The number of employees and revenue can influence the cost, with more employees often resulting in a higher premium due to increased risk.

For office-based businesses, revenue plays a more important role in pricing, whereas for trade and service-based businesses, the number of employees is a key factor. This is because more employees in a trade or service-based business means more opportunities for accidents to occur.

More employees don't necessarily mean a lower premium, as the 'safety in numbers' principle doesn't apply in this case. In fact, having more employees can increase the likelihood of accidents, particularly in high-risk industries like electrical contracting.

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The size of your business can impact the cost of your Public Liability policy, with the number of employees playing a significant role in determining the premium for trade and service-based businesses.

For example, a real estate agency with 10 employees will likely have a higher premium than one with just 3 employees due to the increased risk of accidents.

Revenue, on the other hand, plays a more important role in pricing for office-based businesses.

Insurers consider the level of risk when determining the cost of your cover, which is why the type and size of business you operate is a key factor in pricing.

The type of business you run is a main factor affecting the cost of your insurance, with different industries having varying premiums.

For instance, trades and services have an approximate average monthly total premium of $30, while architects and engineers pay around $25 per month.

Your business activities can also impact your premium, with 'out of the ordinary' activities being taken into account by insurance providers.

Here are some of the main factors influencing your premium:

Using a broker can actually reduce your public liability insurance cost. A good insurance broker knows the market better than anyone and can access quotes from dozens of different insurers.

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They can rely on their buying power to secure lower prices, and some insurers only deal with brokers. This means your broker can get you a great deal with a provider that otherwise wouldn't deal with a private buyer for a single policy.

In fact, using a broker can sometimes secure lower rates than you'd ever be able to get by going direct.

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The cost of public liability insurance is calculated based on four main factors: what your business does, the size of the business, where your business operates, and how much cover you require.

The size of your business can impact the premium, with more employees increasing the risk and therefore the premium. For example, an electrical contracting business with 10 employees has a higher chance of something going wrong compared to a sole trader electrician.

The level of cover also affects the premium, with more cover costing more money. The most common level of cover amongst New Zealand customers is $1 million, but there is the option to take out $2, $5, $10, or $20 million worth of cover.

Here are the main factors that affect the premium:

The cost of public liability insurance is calculated based on four main factors. These factors will give you a basic idea of how much you'll need to pay for your insurance.

The first factor is what your business does. This is a crucial aspect of calculating premiums, as different industries have varying levels of risk.

The size of your business is another factor that affects the cost of public liability insurance. For example, businesses with more staff may pay more for insurance.

Where your business operates is also taken into account. The state you're based in can even affect the stamp duty component of your insurance.

The amount of cover you require is the final main factor in calculating premiums. Covering yourself for $5 million up to $20 million will cost more than covering yourself for a lower amount.

Additional factors that can impact your premium include your previous claims history. If you've had claims in the past, it may increase your premium.

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Your usage of subcontractors or labour hire can also affect your premium. This is worth keeping in mind, especially if you work with subcontractors frequently.

Any work you undertake that's considered outside of the norm for your industry can also increase your premium. This is something to be aware of when considering your business operations.

Here are the four main factors in calculating public liability insurance premiums:

Calculating Premium can be a daunting task, but it doesn't have to be. To get an idea of what you might expect to pay, let's break down the factors that affect your premium.

The size of your business will have a major impact on the cost of public liability insurance for a tradesman. Some insurers measure the size of a business by its turnover, while others base it on staff numbers.

The number of employees and the amount of revenue your business turns over can have an impact on the cost of your Public Liability policy. In fact, the higher the number of employees you have, the more likely it is to result in a higher premium.

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The location of your business will have an effect on the cost of your Public Liability policy, as each Australian state and territory charges varying levels of stamp duty on insurance premiums ranging from 0% to 11%.

Here's a rough idea of how the location of your business can affect your premium:

The amount of cover you require will also have an impact on the public liability cost for a tradesman. In most cases, you may have a contractual obligation to have a certain level of cover as a minimum, but for most sole traders, $5 million is more than enough.

However, if you're working on high-value projects, you may need to consider higher levels of cover, such as $10 million or more. Remember, it's always better to err on the side of caution and consider the worst-case scenario.

The type of business you have will also play a role in determining your premium. For example, trades like builders, welding contractors, and guttering roof installation have different average monthly premiums, ranging from $35 to $60.

Your occupation plays a significant role in determining the cost of your public liability insurance. Different occupations have varying levels of risk, which affects the premium.

Tradespeople, such as builders, welding contractors, and guttering roof installation specialists, are considered high-risk occupations due to their increased exposure to the public and potential hazards on the job site. For example, builders in New Zealand have an approximate average monthly total premium of $60.

Professionals and retailers also operate in different risk environments, but their exposure to risk is generally lower compared to tradespeople. This is because they often work from offices or homes, reducing their risk profile.

A consultant, for instance, poses a low risk level as they spend most of their time working from home or the office with little exposure to risk.

Here's a breakdown of the approximate average monthly total premium for different employee bands in New Zealand:

Your business location can significantly impact the cost of your Public Liability insurance. This is because different states and territories charge varying levels of stamp duty on insurance premiums.

Businesses in certain states, such as NSW and Queensland, may pay higher average base premiums for Public Liability insurance. This is likely due to a combination of factors, including a higher proportion of businesses in high-risk industries.

The cost of Public Liability insurance also varies across different states and territories. According to our data, businesses in NSW pay an average monthly premium of $67.94, while those in Queensland pay an average of $68.27.

Here's a breakdown of the average monthly premium for Public Liability insurance by state or territory:

The types of sites you work on can also affect the cost of your Public Liability insurance, as they may be considered high-risk.

The level of cover you choose for your public liability insurance can impact your premium. The cost of insurance doesn't rise too significantly with an increase in the amount of coverage.

Double the amount of cover doesn't mean double the premium. For example, some businesses prefer to take $5 million, while others take as high as $20 million.

The most popular level of cover amongst customers is $10 million. This is followed by $5 million and then $20 million.

Here's a breakdown of the average monthly cost of public liability insurance by level of cover:

The average monthly premium for public liability insurance varies depending on the level of cover. For example, customers with $10 million coverage pay an average of $57.1 per month.

Some businesses take $1 million worth of cover, while others prefer to take out $2, $5, $10, or $20 million worth of cover.

The cost of public liability insurance can be affected by several factors, including the size of your business.

The number of employees and revenue your business generates can impact the premium. Insurers often view a larger workforce as a higher risk, particularly for trades and service-based industries.

More employees mean more potential for accidents or damage, leading to a higher premium. For example, a business with 10 employees may have a higher chance of something going wrong compared to a sole trader.

The location of your business can also affect the premium, as each Australian state and territory charges varying levels of stamp duty on insurance premiums.

Businesses in NSW and Queensland tend to pay higher average base premiums for public liability insurance. This may be due to a combination of factors, including a higher sample size and a higher proportion of businesses operating in industries with a higher perceived risk.

The level of cover you choose can also impact the premium. While the cost does not rise significantly with an increase in coverage, it's worth noting that some businesses may prefer to take out higher levels of cover, such as $20 million, depending on their specific needs.

On average, small business owners can expect to pay around $63.53 per month for public liability insurance. However, this cost can vary depending on the size of your business, location, and level of cover.

Here's a breakdown of the average monthly premium for public liability insurance across different industries:

Keep in mind that these figures are approximate and may vary depending on your specific business needs.

The size of your business can affect your public liability insurance premium. Insurers may look at the number of employees when determining the cost for trade and service-based businesses, whereas revenue plays a more important role for office-based businesses.

For example, a real estate agency with 10 employees may have a higher premium due to the increased risk of accidents.

The location of your business also impacts your premium, with different states and territories charging varying levels of stamp duty on insurance premiums. Businesses in NSW and Queensland tend to pay higher average base premiums.

To find out your public liability cost, it's best to speak with a suitable insurance broker who specialises in trade insurance services. They can help you determine your premium and get your business covered.

The level of cover you choose can also affect your premium, but fortunately, the cost doesn't rise too significantly with an increase in coverage. The most common level of cover is $1 million, but you can opt for higher limits up to $20 million.

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Here's a rough guide to the average monthly premium by industry in NZ:

Remember to think worst-case scenario when calculating your liability. A $5 million limit may be sufficient for most sole traders, but if you're working on a high-value project, you may need to consider higher limits.

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