Public Liability Insurance: What Sum Insured Should I Have?

At AEI, when people get in touch about a quote, they often enquire as to what Sum Insured they should hold for Public Liability Insurance.

There are a few different factors that influence what Sum Insured a business should hold. Here’s a brief summary:

  • Business Type. (ie low hazard or high hazard occupation)
  • Business Size. As an example, a business that has a very low turnover and is a low hazard business will generally hold a lower Public Liability Insurance Sum Insured than a business that has a large gross annual revenue and high hazard occupation. Whilst the size of a business does not necessarily mean that a higher sum insured is required, it would be our professional recommendation that a limit of no less than $20 million be held as a minimum. Generally the difference in premium between holding a $10 million limit as opposed to a $20 million limit would be an additional 25%.
  • When taking a lease on an office or warehouse, the terms of the lease will require the lessee to take a certain Public Liability Insurance limit. In most cases this requirement is $20,000,000. When taking out a policy you will need to ensure that you adhere to the requirements you have agreed to in the lease document.

As an insurance broker, AEI will work with you to ensure that not only are you meeting all your contractual obligations, but that the Public Liability Insurance premiums that we are quoting are among the most competitive you’ll find in the market.

You run your business – trust us to protect it. Contact us today to find out we can help you.