Liability Insurance Cover Calculator

Work out liability insurance cover instantly with clear inputs, formula shown and shareable results.

About Liability Insurance Cover Calculator

Public and product liability limits are benchmarked two ways — a percentage of turnover and an amount per employee — with the higher taken and then scaled for industry risk and claims history. Liability is a tail exposure, so the limit should reflect a plausible worst case, not an average claim.

Formulas

Benchmarks

Base = max(Turnover x 2%, Employees x 150,000 per head)

Recommended limit

Limit = Base x Industry risk factor x (1 + 10% per prior claim)

Worked example

With the default values below, Liability Insurance Cover Calculator returns Recommended limit of indemnity of $49,000,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Annual turnover: 250,000,000
Number of employees: 180
Industry risk factor: 1.5
Liability claims in the last five years: 2

Results

Recommended limit of indemnity: $49,000,000.00
Turnover-based benchmark: $5,000,000.00
Headcount-based benchmark: $27,000,000.00
Loading for claims history: 20.00%

Step by step

1Values used
2Benchmarks
3Recommended limit
4Recommended limit of indemnity= 49,000,000.00
5Turnover-based benchmark= 5,000,000.00
6Headcount-based benchmark= 27,000,000.00
7Loading for claims history= 20.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or fees or charges into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

Frequently Asked Questions

Is the limit per claim or in the aggregate?

Both matter. An any-one-claim limit with a higher annual aggregate is the usual structure; check whether defence costs erode the limit.

Which industries need higher limits?

Construction, food manufacturing, healthcare, chemicals and anything exporting to litigious jurisdictions.