Public liability is priced on what your work could plausibly do to somebody else, and the inputs are more specific than most buyers expect. Knowing which five matter turns a quote from a mystery into something you can argue with.
The five inputs
Trade and declared activities come first, because they describe what can go wrong. Turnover follows, as a proxy for how much work you do. The limit of indemnity sets how far the cover reaches. Where the work happens matters next, because occupied commercial premises, public places and construction sites carry more exposure than a workshop. And claims history closes it, usually over five years, where frequency counts as much as size.
Why the same trade gets different numbers
Two electricians, two cleaners or two caterers with identical turnover routinely see different quotes, and the reason is almost always in the activity declaration rather than in the insurer's mood. Work at height, hot works, work in occupied buildings, subcontracting, use of machinery and the presence of employees each shift the rate. A quote that looks out of line is usually worth reading back through the declarations rather than simply replacing with another one.
What the limit actually costs
Moving from one million to two, five or ten million does not multiply the premium. Higher layers are only reached by rare claims, so the additional cost falls away quickly, and the step is often smaller than buyers assume. Since the limit is frequently set by a client contract rather than by choice, the practical advice is to price the limits you might be asked for rather than the one you need today, because moving mid term costs more attention than buying it up front.
Where a printed from price stops describing you
Insurers publish a from figure to give buyers something comparable. It describes the cheapest acceptable risk in that trade: low turnover, no staff, no height, no claims. Almost nobody matches it exactly, so a quote above it is the normal case rather than a sign of something wrong. Paying monthly adds a credit charge that is finance rather than risk, and comparing a monthly figure against an annual one without that charge compares two different things.
Questions people ask about cost of public liability insurance uk
What decides the price of public liability insurance?
Declared activities, turnover, the limit of indemnity, where the work happens and the claims history, usually over five years.
Does a five million limit cost five times a one million limit?
No. Higher layers are reached only by rare claims, so the additional premium falls away quickly and the step is usually modest.
Why is my quote above the advertised from price?
Because that figure describes the insurer's cheapest acceptable risk. Employees, height, hot works, higher limits and claims all move a quote above it.