What Drives Business Liability Premiums

There is no flat rate. Here's what insurers actually weigh when pricing your cover — and why we don't publish a price grid.

Commercial liability cover — public liability, professional indemnity, statutory liability — is individually underwritten. Two businesses in the same trade with the same revenue can pay materially different premiums depending on claims history, cover limits, contracts in place, and a dozen other factors. Any "$X/month" headline is a marketing artefact, not a quote.

Why we don't publish a price table.

A public price grid would be misleading. The honest answer to "how much does it cost?" is: it depends on the inputs below, and the only way to know is to put your specific business in front of underwriters. Stewart Hunt at First Commercial Insurance Brokers Ltd (FSP748591) does that on your behalf.

What Insurers Weigh

Trade and activities

A roofer, an accountant and a software consultant face very different liability exposures. The starting risk is not the same.

Annual turnover

More revenue typically means more jobs, more clients, more exposure. Insurers rate against turnover bands.

Limit of liability

$1m, $2m, $5m, $10m, $20m+ — the cap you choose materially changes the premium. Some contracts force the limit.

Claims history

Past claims, near-misses and time since your last loss all influence what insurers will quote — and whether they'll quote at all.

Headcount and subcontractors

More workers, more exposure. The split between employees and subcontractors matters too.

Where and how you work

Sites, regions, height of work, hot work, contractual liability assumed under your client contracts.

Cover combination

Public liability, professional indemnity and statutory liability are often packaged together — your adviser will explain the trade-offs.

Excess and policy structure

Higher excess generally lowers the premium. Sub-limits, retroactive cover and territorial extensions also affect price.

What "Cheap" Misses

Lowest premium isn't the same as best value. Things to ask any quote against:

Watch for

  • High excess that you can't actually afford to claim against
  • Long lists of exclusions that hollow out cover
  • Limits below what your contracts require
  • Narrow definition of "professional services"
  • Limited or no retroactive cover

Worth paying for

  • Limit appropriate to your contracts and exposures
  • Wording that names the activities you actually do
  • An insurer with a claims track record in your trade
  • A broker who explains the wording before you sign
  • Policy review at renewal, not just rollover

Get a Tailored Quote

Send your business details and Stewart Hunt will arrange written quotes through First Commercial Insurance Brokers Ltd.

Request a Quote