We regularly get asked the question ‘What level of Public Liability Cover should I have?’. As this type of cover is NOT a legal requirement there isn’t a set minimum required by law. Often you will require a minimum level of cover to get a particular contract, for example with a local authority. This tends to be a minimum of £5 million but it will depend on who you are contracting for.
Another factor you should think about is how much a claim against you could be. A house might be worth £2 million but the plot may be worth most of this. So do you need £1 million of cover or more? If you badly injure a member of the public a claim could run into several millions.
Often contractors go for the highest sum insured because it sounds more ‘professional ‘. One Arborist we insure says he gains clients because he has £10 million worth of liability cover. Then we have another one who had this question thrown at him – ‘Do you need £10 million worth of cover because you’re going to cause a lot of damage?’!
The level of cover you have is down to what your business requires, particularly as the more cover you have the more it costs. Whilst we can’t advise you on the sum insured, I would recommend that you take a cautious approach to the damage you could cause but also then add in any ‘advertising value’ for a large sum insured.
