Combined Liability Insurance

Combined Liability Insurance helps protect businesses from financial losses arising from claims made by members of the public or employees. It typically covers legal expenses, settlements and compensation resulting from injury or property damage caused by your business’s actions, products or negligence.

However, it’s important to note that Combined Liability Insurance does not cover intentional acts, deliberate damage or breach of contract.

This type of policy can include a combination of Employers’ Liability, Public Liability, and Products Liability, providing broad protection under one convenient policy.

Combined Liability Insurance provides a streamlined, cost-effective solution for protecting your business against multiple liability risks - including Public, Employers’ and Products Liability - all under a single policy. Here’s a breakdown of the key benefits:

Wide ranging cover in one policy

• Public Liability Insurance: Covers claims from third parties for injury or property damage arising from your business activities.
• Employers’ Liability Insurance: Legally required in the UK for most businesses with employees, covering work-related injuries or illnesses.
• Product Liability Insurance: Protects against claims related to products you manufacture, supply or sell that cause injury or damage.

Cost efficiency

• Combining multiple liability covers into one policy may result in lower overall premiums compared to purchasing separate policies.
• It also reduces administrative overhead, saving time and resources on policy management.

Simplified policy management

• One renewal date, one insurer and one point of contact make it easier to manage your Liability Insurance.
• May reduce the risk of cover gaps or overlaps that could occur with multiple standalone policies.
• Having one central liability insurer relationship may also streamline claims handling, allowing for faster communication and resolution if an incident occurs.

Legal compliance

• Employers’ Liability is a legal requirement for most UK businesses with staff, with fines of up to £2,500 for each day without valid cover. Including it in a combined policy ensures compliance without the need for separate arrangements.

Flexibility of cover

• Cover can be adjusted to reflect your business size, industry and risk profile.
• Indemnity limits can be increased for higher risk operations (e.g. businesses working with heat, at height or in hazardous environments) to ensure adequate protection against larger or more complex claims.
• As your business grows or changes, your policy can be reviewed and updated to reflect new activities, locations or contractual requirements.

Business continuity and peace of mind

• Helps protect your business from unexpected legal costs, compensation claims and reputational damage following an incident involving employees, customers or the public.
• Allows you to focus on growth, knowing your liabilities are covered.
• Wide-ranging liability protection also demonstrates professional responsibility to clients, employees and regulators - strengthening trust and credibility.

Public Liability Insurance is not a legal requirement in the UK. However, it is strongly recommended for any business that interacts with clients, customers or members of the public - either at your premises or theirs.

It is also worth noting that many clients, local authorities and trade associations require proof of Public Liability cover before allowing businesses to work with them or access certain sites.

By contrast, under the Employers’ Liability (Compulsory Insurance) Act 1969, UK businesses must have Employers’ Liability Insurance as soon as they employ one or more people.

Employers’ Liability Insurance legal obligations

• The policy must cover at least £5 million and be issued by an authorised insurer.
• The certificate of insurance must be displayed or made accessible to employees, either physically or digitally.
• Exceptions include:
  • Businesses that only employ close family members (provided they are not incorporated as a limited company).
  • Sole traders or partnerships with no employees.
  • Staff based outside England, Scotland and Wales (where local regulations may differ).
• Failure to comply can result in fines of £2,500 per day.

Combined Liability Insurance is ideal for businesses that face multiple liability risks - especially those with employees, public interaction or product exposure. It combines key protections like Employers’ Liability, Public Liability and Products Liability into one streamlined policy.

Businesses that typically need Combined Liability Insurance:

• Employers: If you have staff, Employers’ Liability is a legal requirement in the UK. Combined Liability ensures this is covered alongside other risks.
• Tradespeople & contractors: Regularly working on client sites or public property increases exposure to Public Liability claims for accidental injury or damage. If you supply or install products, Product Liability may also be necessary.
• Retailers & hospitality: Shops, restaurants, bars and venues interact with the public daily - making Public Liability recommended. Selling food, drinks or goods also introduces Product Liability risks.
• Manufacturers & distributors: If your business makes or supplies products, you need protection against claims of injury or damage caused by defective or unsafe products.
• Service providers: Consultants, fitness instructors and other client-facing professionals benefit from Public Liability cover for client interactions and Employers’ Liability if they have staff.
• Construction firms: Often exposed to all three risks - employee injury, public exposure and product-related liability - making Combined Liability a practical solution.

The amount of Combined Liability Insurance you need depends on your business size, industry risks, client requirements and legal obligations. Most UK businesses should carry at least £5 million Employers’ Liability cover, while Public and Product Liability limits typically range from £1 million to £10 million. Here’s a breakdown to help you assess your needs:

Employers’ Liability Insurance (legally required for most businesses)

• Minimum legal requirement: £5 million cover.
• Most insurers provide £10 million as standard, especially for businesses with multiple employees or higher-risk environments.
• Required for nearly all UK businesses with staff, including temporary and part-time workers.

Public Liability Insurance

• Covers injury or property damage claims from third parties.
• Typical cover levels:
  • £1 million: Suitable for small, low-risk businesses.
  • £2–5 million: Common for tradespeople, retailers and service providers.
  • £10 million or more: May be required for public contracts, events or high-footfall premises.

Product Liability Insurance

• Protects against claims from faulty or harmful products.
• Cover often mirrors Public Liability limits.
• Businesses in manufacturing, distribution or retail should consider £2–10 million, depending on product type and volume.

Factors that influence cover needs

• Industry risk: Construction, hospitality and manufacturing require higher limits.
• Client contracts: Some clients or public sector bodies may specify minimum cover levels.
• Business size and turnover: Larger businesses face greater exposure.
• Claims history: Past incidents may prompt higher cover limits.
• Regulatory or trade body requirements: Some sectors mandate specific limits.

Your insurance advisor can help you assess your individual risk profile and ensure your policy limits meet both legal and commercial requirements.

Tip: Review your contracts and risk profile annually, as your business needs may have changed.

The cost of Combined Liability Insurance depends on a range of factors that insurers consider when assessing your level of risk and potential claim exposure. These include:

Type of business

• High-risk industries such as construction, manufacturing or hospitality typically face higher premiums due to increased exposure to liability claims.
• Low-risk sectors like consulting or design often benefit from lower rates.

Business size and turnover

• Larger businesses with more employees or higher revenue generally pay more, as they present greater liability risks.
• Turnover can also affect the scale of cover required.

Number of employees

• Employers’ Liability Insurance is legally required for most UK businesses with staff. The more employees you have, the greater the potential for workplace-related claims.

Level of public interaction

• Businesses that regularly engage with the public - such as retailers, tradespeople or event organisers - may need higher Public Liability limits, which can increase premiums.

Products offered

• Businesses that manufacture, sell or distribute products require Product Liability cover. Riskier products, such as electrical goods or food items, tend to raise premiums.

Claims history

• A clean claims record can help reduce your premium.
• Frequent or high-value claims may result in higher costs or restricted cover options.

Cover limits and excess

• Higher levels of cover offer greater protection but can increase premiums.
• Opting for a higher excess (the amount you contribute toward a claim) can lower your premium.

Location

• Businesses in areas with higher crime rates or litigation frequency may face increased premiums.

Policy customisation

• Adding optional covers such as legal expenses, cyber protection or business interruption insurance will increase the overall cost.

Insurers consider these factors collectively to assess how likely your business is to make a claim and how costly that claim could be - helping determine a fair and accurate premium for your cover.

Saving money on your Combined Liability Insurance doesn’t always mean compromising on cover. Here are practical ways to reduce your premium while staying protected:

Combine your cover

• Combined Liability Insurance may save you money by packaging Public, Employers’ and Products Liability into one policy.
• You may also be able to include other types of cover (e.g. Professional Indemnity or Commercial Property), in a business insurance package.

Increase your excess

• Your excess is the amount you agree to pay toward the cost of a claim before your insurer contributes.
• Opting for a higher voluntary excess (the amount you pay toward a claim) can lower your premium.
• Just make sure it’s still affordable if you need to make a claim.

Review your cover limits

• Avoid over-insurance - choose cover limits that reflect your actual risk exposure.
• For example, a small consultancy may not need the same Public Liability limit as a large construction firm.
• Likewise, as your business evolves, your cover limits should be adjusted up or down to reflect any new contracts, equipment or operational changes.

Use a broker

• Use a broker to help you to explore quotes from multiple insurers.
• Your broker may have access to broker-specific deals that you may not be able to benefit from as a direct customer.
• A broker can also provide advice on the types and levels of liability insurance you need, ensuring you meet both legal requirements and client expectations.

Improve risk management

• Demonstrating robust health and safety practices, staff training and regulatory compliance can help to reduce your risk profile - and potentially your premium.
• Implementing clear procedures for accident prevention, equipment maintenance and incident reporting can reduce the likelihood of claims.
• Fewer claims = potentially lower future costs.
• Some insurers may even offer discounts or incentives for businesses that invest in accredited safety schemes or ongoing risk assessments.

Pay annually instead of monthly

• Many premium finance providers charge interest for monthly payments.
• If cashflow allows, paying annually can save you money over the long term.

Keep your claims history clean

• Avoid small claims where possible as frequent low-value claims can increase future premiums and excesses.
• Where practical, consider handling minor losses or repairs in-house - for example, covering small property damage or replacement costs internally - rather than claiming on your policy.
• Invest in preventative measures, such as staff training, routine inspections and workplace safety improvements, to reduce the likelihood of accidents or incidents.
• A clean claims history demonstrates sound risk management and builds insurer confidence, which can help you secure better rates and broader cover options at renewal.

We understand that managing cash flow is important, which is why we offer flexible ways to pay for your Combined Liability Insurance policy. If you’d prefer not to pay the full amount in full, you can opt for a 50% deposit, with the remaining balance due 28 days after your policy begins – giving you time to spread the cost.

Alternatively, if monthly budgeting works better for your business, our third-party premium finance provider can offer convenient direct debit payments, allowing you to split the cost into manageable instalments (interest rates apply so this is more expensive than paying in full or in two instalments, please speak with our team for details).

The easiest way to get started is by calling our friendly commercial insurance advisors. They’ll walk you through the details our panel of insurers need to provide a quote and answer any questions you may have along the way.

Call us

Head Office: 01227 285 540
Ashford Branch: 01233 222 562

Prefer to start by email? No problem – just drop us a message at ashford@qmtcommercial.co.uk and we’ll get back to you promptly.