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Choose the level of cover you need based on the risks associated with your work, such as contact with the public or dangerous equipment, and adjust coverage accordingly. Most insurers start coverage at £1 million
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Public liability insurance is a type of business insurance that protects those working with members of the public. It provides financial protection to business owners facing legal action or claims made from third parties due to injuries, deaths, or property damage caused by their business activities.
This coverage is crucial for managing the costs associated with legal fees and potential compensation payments.
While public liability insurance is not legally required, unlike employer’s liability insurance, it is often deemed essential by many businesses for its role in safeguarding against unforeseen liabilities if a member of the public makes a claim against you.
Compensation claims: For injuries to a third party or damage to their property, whether that occurs on your property, theirs, or anywhere else
Legal expenses: If a claim is made against you, you’ll be covered for the cost of any legal proceedings
Cost of repairs: The cost of repairing property damage – for example, if you’re a plumber and your work damages a client’s home
Medical fees: If the NHS chooses to make a claim against you, you’re covered for hospital treatment or an ambulance callout
Accidental damage: If you or one of your employees damage a client's property, you may be liable which your insurance will cover
Injury: If someone gets injured, or worse, on your business premises you may be held accountable. You'll be covered if a claim is made and compensation is due
Yourself: Public liability only protects third parties – so it can’t help if there’s an accident and you’re injured
Your property: Similarly, if your property is damaged, that should be covered by your commercial buildings insurance
Your employees: If you have more than one employee, you’re legally required to get employers’ liability cover to protect them
Your excess amount: All insurance policies have an excess – that’s the amount you’ll have to pay yourself toward any claim
Professional mistakes or negligence: If it is found that an incident occurred because of negligence, you will not be covered
Intentional harm or damage: If you or any of your employees in your business causes any intentional damage, it will not be covered
When buying public liability insurance, it's key to know about the 'excess'—this is what you pay out of your pocket before the insurance starts paying the rest of your claim. When you get insurance quotes, you can decide how much your excess will be.
Typically, if you agree to pay more for the excess, your overall insurance cost could be lower. Be careful to choose an excess amount that you're comfortable with; you'll need to pay it if you ever make a claim.
Also, remember that public liability insurance only covers you if you have to pay someone because you're legally responsible for an accident or damage. The insurance pays only if you're found to be legally at fault.
Profession | Average annual price |
|---|---|
Builder | £168.24[1] |
Roofer | £305.10[2] |
Painter/Decorator | £87.54[3] |
Electrician | £88.30 [4] |
Plasterer | £78.61 [5] |
Caterer | £135.66[6] |
The table shows the average prices paid by our customers for the most common types of business insurance.
However, the cost of your public liability will depend on a few factors including:
Your claims history: If you have made claims in the past, your premiums could increase
The size and value of your business: Your premiums are likely to increase depending on the size of your business
Your business: Your premiums are heavily based on the nature of your business itself, and the risks associated with it
Excess: The higher the amount of excess you choose, the lower your premiums are likely to be
According to our latest data, 10% of customers paid this when taking out an annual public liability insurance policy.
The cost of fixing insurable problems yourself is usually significantly more expensive than taking out insurance.
It's imporant to consider how much risk your business has. If your business is high risk or works a lot with the government, you might need up to £10 million in insurance.
If you run a smaller business that doesn't deal much with the public, you might only need a minimum of £2 million in coverage.
Public liability insurance isn't a legal requirement, but it's crucial if you're dealing with government or council contracts, as they often require proof of insurance and a certain level of coverage to collaborate with you.
For small businesses, it's also common practice for customers to request proof of public liability insurance. This is especially true for tradespeople like builders who may need to work on a client's property.
Here are some examples of businesses that should consider public liability insurance:
Imagine your cleaning company is working in an office and accidentally damages a visitor's property
It's beneficial to have coverage in case scaffolding collapses and damages property, such as a vehicle
Picture a situation where someone slips and gets injured just before you manage to put up a 'wet floor' sign
Despite adhering to safety regulations to prevent electrical hazards, unforeseen accidents can still occur
A roofer might accidentally drop tools or materials from a height, potentially causing injury to someone below or damaging property
A customer could slip on a wet floor or trip over an obstacle within the retail space, leading to injury
Spillages or broken glass could result in a patron's injury, for which the establishment could be held liable
A client could suffer a reaction to a hair treatment or slip in the salon, prompting a claim against the business
During a photoshoot, equipment might fall and injure someone or damage property
Suppose you're catering a wedding and a guest alleges they got food poisoning from the food you provided
Consider the scenario where a bucket of water falls from a height onto a busy street, ruining a pedestrian's clothing and phone
Envision a client tripping over an unsecured cable during a visit to your workshop
Public liability insurance should be a priority for any business that interacts with the public. Accidents can happen, and if they result in injury or more severe consequences to a third party, the compensation claims could be financially devastating. A robust public liability insurance policy is essential to protect against such risks associated with third party legal claims
Sara Newell Car & Van Insurance Expert
Choose the level of cover you need based on the risks associated with your work, such as contact with the public or dangerous equipment, and adjust coverage accordingly. Most insurers start coverage at £1 million
In the event of an incident, where a claim has been made against you, your business needs to file a claim with your insurance provider and include necessary documentation, such as photos or witness statements
After investigation, your provider will determine whether it is covered under the terms of your policy. If covered, they will either negotiate a settlement with the claimant or defend the business in court
Employers’ liability cover is to protect you against legal costs if an employee is injured, gets ill, or their property gets damaged as a result of your business. It’s legally required if your business employs others
Product liability insurance covers you for any costs resulting from a person becoming ill or injured or having their property damaged by a product your business sells – often even if you didn’t manufacture it
A professional indemnity policy is useful protection if you advise clients as part of your business. It covers the cost of claims made against you if the client suffers any losses as a result of the advice or work you did
Have part of your income supplemented if your business is interrupted by an insurable event, such as a fire
Protect your tools from theft, damage, and loss. You can add tools insurance as additional cover to a business insurance policy
Business contents insurance can help protect your equipment that is stored in any company premises in the event of loss, damage, or theft
Easily compare quotes from leading insurance providers and find the most affordable public liability insurance to suit your business’s needs
We present your tailored quotes in one place, saving you the time and effort of individually researching and contacting different insurance providers
We provide a clear and convenient way to explore public liability insurance policies, helping you to make informed decisions on the best policy for you
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Ensure it meets your business needs and read policy documents.
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It financially safeguards against claims for damage or injuries caused to others outside of business contexts.
It is not compulsory. However, self-employed individuals who interact with the public often find public liability insurance a valuable and affordable safeguard against claims that could otherwise cost them thousands or even millions of pounds.
Public liability insurance will usually cover legal fees that are related to incidents that are covered under your policy.
If you’re getting married, public liability insurance can protect you from claims made against you and your partner regarding any guest injuries or venue damages. Many wedding insurance policies include it.
While it is not legally required, some wedding venues will insist you have it.
You will need to call your insurance provider and have your policy details, contact insurance, and all your company details with you. You will also need the details of the person who is claiming against you with details about the incident. You will need to give as much information as you possibly can about the incident including pictures, time and place, dates, and any estimates you may have.
Policies typically last 12 months, after which you’ll have the option to renew it.
It can be tempting to choose the cheapest insurance just so you know you have some form of cover in place, but cheaper can often mean less comprehensive. This can mean when you do need your insurance to help you in a certain situation, you may not even be covered for it.
Always read your policy exclusions before buying your policy to make sure you are aware of what your insurance policy will not cover.
Product liability insurance covers costs if there are issues with products you have supplied, sold, or manufactured.
Public liability insurance covers costs if members of the public are injured, or their property is damaged, because of your work.
Product liability insurance is often included within public liability insurance policies.
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