AXA Business Public Liability Insurance UK: What It Covers and Costs

What AXA public liability insurance covers

Public liability insurance is designed to protect a business against claims brought by members of the public, clients or other third parties who allege that the business caused them injury or damaged their property. With AXA public liability cover, the policy is structured to respond to the cost of compensation awarded to a third party and the legal costs of defending or settling the claim, up to the limit of indemnity stated on the policy schedule.

Typical scenarios include a customer slipping on a wet floor in a shop, a visitor being injured by falling stock, or a tradesperson accidentally damaging a client's property while carrying out work. The cover usually extends to incidents that happen at the business premises and, for mobile trades, at client sites. Because the exposure varies so widely by trade, AXA offers public liability as a standalone option for some businesses and as part of bundled trade, shop, office and professional packages for others.

Limits of indemnity are commonly offered at one million, two million or five million pounds, and the appropriate level often depends on contractual requirements. Many commercial clients, local authorities and main contractors require a supplier to hold a minimum level of public liability cover, frequently five million pounds, before they will award work, so the limit chosen is sometimes driven by the businesses a firm wants to serve rather than by risk appetite alone.

What AXA public liability does not cover

Public liability is not a catch-all policy, and several important risks fall outside it. The most significant exclusion is injury to your own employees, which is covered by employers' liability insurance and not public liability. Damage to property that the business owns, occupies or has in its custody is also generally excluded, as is the cost of putting right defective work itself, which is distinct from third-party damage caused by that work.

• Claims arising from professional advice or design, which require professional indemnity cover.
• Deliberate, reckless or dishonest acts by the insured.
• Liability assumed under a contract that goes beyond what the law would otherwise impose, unless agreed.
• Pollution and contamination beyond sudden, accidental and identifiable events, depending on the wording.

Conditions also apply. Under the Insurance Act 2015, a business must make a fair presentation of the risk when taking out or renewing cover, including describing its trade accurately and disclosing relevant facts. A misdescribed trade or undisclosed high-risk activity can give the insurer grounds to reduce or decline a claim, so accuracy at the quote stage directly affects whether cover responds later.

How AXA sets public liability premiums

There is no fixed price for public liability cover because the premium reflects the risk a particular business presents. The main factors that shape an AXA public liability premium include the trade or activity, the annual turnover, the number of employees, the chosen limit of indemnity, the level of voluntary excess and the business's claims history. A low-hazard office consultancy will generally pay far less than a roofer or a business that works at height, because the likelihood and potential severity of a claim differ sharply.

Because the rating is individual, comparing only headline premiums between insurers can be misleading. Two quotes at similar prices may carry different excesses, different cover extensions and different exclusions. The more reliable comparison weighs the premium against the indemnity limit, the excess and the precise scope of the cover described in the wording.

How to make a public liability claim with AXA

The general process for a public liability claim follows the standard UK commercial pattern. Speed and care at the outset matter, because most policies require prompt notification and prohibit the insured from admitting liability or settling directly with the claimant. If a third party threatens a claim, the business should pass the details to AXA rather than respond on its own account.

• Record the incident promptly, including date, location, what happened and who was involved.
• Collect evidence: photographs, witness contact details and any relevant records or risk assessments.
• Do not admit fault or agree to pay; forward any letters of claim or legal documents unanswered.
• Notify AXA using the contact details on the policy schedule, quoting the policy number.

Once notified, the insurer assesses liability and, where appropriate, manages the defence or negotiates a settlement. The Financial Conduct Authority requires insurers to handle claims promptly and fairly, and unreasonable delay or a poorly reasoned decision can be raised through the complaints process.

Your rights if a public liability claim is declined

If AXA declines a public liability claim, the policyholder is entitled to a clear written explanation of the reasons and can use the insurer's internal complaints procedure. Should the matter remain unresolved after AXA's final response, or after eight weeks have passed, the customer can refer the complaint free of charge to the Financial Ombudsman Service. The Ombudsman reviews the evidence independently, can make a binding decision and publishes complaint and uphold data by firm at financial-ombudsman.org.uk. Across general insurance, the Ombudsman commonly upholds in the region of 30 to 40 per cent of complaints, which underlines the value of escalating a decision that appears unfair.

Frequently asked questions

What does AXA public liability insurance cover?

It covers compensation and legal costs when a third party, such as a customer or visitor, suffers injury or property damage that the business is found liable for. Cover applies up to the limit of indemnity shown on the policy schedule, commonly one, two or five million pounds.

Is public liability insurance a legal requirement?

Public liability is not generally compulsory by law, unlike employers' liability for businesses with staff. However, many clients, contractors and public bodies require a minimum level of public liability cover before awarding work, so it is often a practical necessity.

How much public liability cover do I need with AXA?

The right limit depends on your trade and any contractual requirements imposed by clients. Limits of one, two or five million pounds are common, and a five million pound limit is frequently requested by larger clients and local authorities. Check your contracts before selecting a limit.

Does AXA public liability cover injury to my employees?

No. Injury to your own employees is covered by employers' liability insurance, which is a separate and usually compulsory cover for businesses with staff. Public liability responds only to third-party claims from members of the public or clients.

What should I do if AXA declines my public liability claim?

Ask for a written explanation and use AXA's internal complaints process first. If you are still dissatisfied after the final response or after eight weeks, you can refer the complaint free of charge to the Financial Ombudsman Service at financial-ombudsman.org.uk, which can make a binding decision.

What factors affect the price of AXA public liability cover?

The main drivers are your trade, annual turnover, number of employees, the indemnity limit, the excess and your claims history. Higher-hazard trades and higher limits increase the premium, while a clean claims record can reduce it.