Public liability insurance that protects you & your business
Public liability insurance from a panel of trusted UK insurers
Insure your business for public liability with zero hassle
Public liability insurance protects your business if a member of the public, a customer, client, or visitor is injured or their property is damaged as a result of your work. Whether someone trips over your equipment on a job site, slips at your premises, or their property is damaged while you’re working, a claim without insurance could be financially devastating.
At insurd, we’re an FCA-regulated specialist insurance broker with over 50 years of experience arranging public liability insurance for sole traders, tradespeople, and businesses across the UK. We work with a panel of leading UK insurers to find the right level of cover for your trade and the way you work.
24/7 claims service
We’re here for you round the clock when you need us most.
Fairer prices for all
As a specialist insurance broker, we search our panel of leading UK insurers to find the right public liability policy for your business.
World-class support
You’ll get your own UK-based human to look after you for the duration of your policy.
We use a combination of technology and a wealth of experience to give you unrivalled cover and more affordable public liability insurance prices. Get a quote today.
What is public liability insurance?
Public liability insurance, also known as general liability insurance or PLI, is an important type of business cover. It protects your business if a third party, such as a customer, client or member of the public, is accidentally injured or their property is damaged because of your work or while visiting your premises.
This type of insurance can help cover the cost of compensation claims, legal fees and repairing or replacing damaged property. Whether someone trips over your equipment, slips at a job site or their belongings are damaged during your work, public liability insurance helps protect your business from unexpected expenses.
Although it is not a legal requirement, many clients, including councils, schools and other organisations, may ask you to have it before agreeing to work with you. Providing a certificate of public liability insurance shows that your business takes safety seriously and gives customers peace of mind.
Read our guide on what public liability insurance covers for more details.
Public liability insurance is crucial for several reasons:
- Business reputation: Having insurance demonstrates professionalism. Many clients, councils, and public sector organisations require a valid PL certificate before agreeing to work with you.
- Financial protection: Compensation claims and legal costs can be substantial, even for minor incidents. Public liability insurance ensures a single claim can’t threaten your livelihood.
- Contract compliance: While not legally required in the UK, many contracts and frameworks require evidence of public liability cover as a condition of engagement.
The benefits of public liability insurance
Personal injury claims
Covers compensation if a member of the public is injured as a result of your business activities. Legal costs and compensation awards in personal injury cases can be significant — public liability cover ensures your business isn’t personally liable*.
Damage to property
Covers the cost of repairing or replacing third-party property damaged by your work. Whether it’s a customer’s belongings, a client’s premises, or a neighbour’s property, you’re protected*.
Legal protection
Covers the cost of defending a liability claim made against you, even if you’re not at fault. Legal defence costs alone can run into thousands of pounds before any compensation is considered*.
* Subject to your chosen level of policy cover and the prevailing policy excess.
Employers’ liability insurance
What’s the Difference Between Public Liability and Employers’ Liability? The key difference lies in who is covered.
- Public liability insurance: Protects your business if a third party. Such as a customer, client, or member of the public who is accidentally injured or has their property damaged because of your work.
- Employers’ liability insurance: Covers people who work for you and is required by law if you have employees. This includes full-time and part-time employees, volunteers, apprentices, and trainees. It protects your business if someone working for you is injured or becomes ill as a result of their job.
We can offer employers’ liability insurance as part of our cover. It can easily be added when you get a quote.
Who needs public liability insurance?
Almost any business that interacts with the public should consider this cover. Whether people visit your premises, you work at customer locations or in public spaces, there is always a risk that something could go wrong. Public liability insurance is especially important for businesses that work with local councils, schools or public sector contracts, where having this insurance is often a requirement.
While beneficial for all businesses, cover is particularly vital for those who interact with the public. This includes, but is not limited to:
Types of business
- Sole trader insurance – Cover tailored for individuals running their own business independently.
- Self-employed insurance – Protection for freelancers, gig workers, and anyone working for themselves.
- Tradesman insurance – Insurance for skilled trades like carpenters, decorators, and handypersons.
- Builders insurance – Cover for building contractors and construction workers, including site risks.
- Electrician Insurance – Protection for domestic and commercial electrical contractors.
- Plumber insurance – Insurance designed for plumbing professionals, including emergency call-outs.
- Groundworks insurance – Specialist cover for groundwork contractors working on foundations and excavation.
- Contractor insurance – Flexible insurance for contractors working across various industries or projects.
- Property owners’ liability insurance – Cover for domestic and commercial cleaners, including liability and equipment.
- Driving instructor insurance – Cover for driving instructors, including damage to vehicles and property.
- Bouncy castle insurance – Cover for operators responsible for transport, setting up, ensuring safety and supervising.
- Cleaning business insurance – Cover for domestic and commercial cleaners, including liability and equipment.
- Window cleaning insurance – Protection for window cleaners working at height or in public spaces.
- Freelance insurance – Tailored cover for independent professionals working on a project basis. Including freelance groom insurance.
- Consultant insurance – Professional indemnity and liability cover for business consultants and advisors.
- Photographer insurance – Protection for professional photographers, including equipment and liability.
- Hairdressing insurance – Insurance for mobile or salon-based hairdressers, including treatment risks.
- Barber insurance – Cover designed for barbershops and self-employed barbers.
- Beauty therapist insurance – Protection for beauty professionals offering treatments like facials and waxing.
- Catering insurance – Cover for caterers, whether working at events, from home, or running food vans.
- Pet business insurance – Cover for dog walking insurance, dog grooming insurance and pet sitter insurance.
Whatever your industry or type of business, we can tailor a policy to your needs.
How much does public liability insurance cost?
This depends on the nature and size of your business, the level of risk involved and any claims history you might have.
The cost of public liability insurance varies based on several factors:
Type of cover
Standard cover starts at £1 million, with options for £2 million, £5 million, and £10 million. Many local authority and public sector contracts require a minimum of £5 million or £10 million. Check your contract requirements before choosing a limit.
Nature of business
The higher the risk level of your trade, the higher your premium. Construction, electrical, and groundworks trades carry higher premiums than lower-risk activities such as photography or consultancy.
Location
Operating in areas with higher footfall, greater public interaction, or higher claims rates can affect your premium. Mobile traders working across multiple locations are assessed differently to fixed-premises businesses.
Business size and turnover
Most public liability policies are priced partly on annual turnover — the larger your business, the greater your potential exposure to claims. Accurate turnover declarations ensure you’re not overpaying for cover you don’t need.
Number of employees
More employees means greater risk exposure. Even for low-risk businesses, a larger workforce increases the likelihood of a claim arising from business activities.
Claims history
A clean claims history is your most effective long-term cost reduction tool. Previous claims signal higher risk to insurers and will increase your renewal premium.
How to reduce your public liability insurance premium
Beyond the factors above, there are several practical steps that can help reduce your public liability insurance costs.
- Demonstrate active risk management — Insurers reward businesses that take risk seriously. Written risk assessments, regular safety checks, staff training records, and documented procedures all signal lower risk and can reduce your premium.
- Join a recognised trade body — Membership of a relevant trade association — such as the Federation of Master Builders, NICEIC, or Gas Safe Register — demonstrates professional standards and is viewed favourably by insurers, sometimes attracting direct discounts.
- Declare your turnover accurately — Public liability premiums are often calculated based on annual turnover. Overstating your turnover or business activity means paying for risk you don’t carry. Accurate declarations ensure you’re not overinsured.
- Choose the right level of cover — £1m, £2m, and £5m cover limits carry different premiums. Review what your contracts and clients actually require — many sole traders and small businesses are overinsured relative to their actual exposure.
- Build a clean claims history — Avoiding claims where possible and managing incidents carefully protects your claims record. A clean history is your most effective long-term premium reduction tool.
- Pay annually — Monthly payments include finance interest. Paying your full annual premium upfront avoids that additional cost.
Average cost
The cost of public liability insurance varies widely depending on your trade and risk profile. As a rough guide:
- Small businesses and sole traders typically pay between £50 and £150 per year for £1 million of cover.
- Medium-sized businesses with higher turnover or greater risk exposure typically pay £200 to £600 per year.
- Larger businesses or those requiring £5 million or £10 million cover limits, premiums can exceed £1,000 annually.
Keep in mind that these are general estimates. The actual cost for your business might differ based on the factors mentioned above. The best way to find out what you’ll pay is to get a quote — it takes less than two minutes.
Public liability insurance frequently asked questions
When do I need to get public liability insurance?
As soon as your business starts interacting with the public, clients, or customers — even if you're just starting out. Whether you're a sole trader, freelancer, or limited company, if something goes wrong and someone is injured or their property is damaged, you could face a significant compensation claim. It's far better to have cover in place from day one.
Is public liability insurance a legal requirement?
No — it isn't a legal requirement in the UK. However, many organisations, councils, schools, and clients will require you to have it before agreeing to work with you. It's also worth considering what a significant compensation claim could do to your business financially if you're not protected.
What does public liability insurance actually cover?
Public liability insurance covers the cost of compensation claims and legal fees if a member of the public is injured or their property is damaged as a result of your business activities. This could be a customer tripping over your equipment, a client's property being damaged while you're working on it, or a passer-by being injured near your worksite. It covers both the compensation payment and your legal costs, even if a claim turns out to be unfounded.
What isn't covered by public liability insurance?
Public liability insurance covers claims from members of the public — it doesn't cover claims from your own employees (that's what employers' liability is for), losses caused by professional mistakes or bad advice (you'd need professional indemnity insurance for that), or damage to your own property or equipment. Always check your policy wording carefully to understand exactly what's included.
What limit of cover should I choose?
The right level depends on the nature of your work and your clients' requirements. Standard cover starts at £1 million, but many organisations — particularly local authorities, schools, and government contracts — will require a minimum of £5 million or £10 million. When in doubt, check your contract requirements before getting a quote.
Do I need employers’ liability cover?
Yes, if you employ anyone — including part-time staff, apprentices, volunteers, or labour-only subcontractors. Employers' liability insurance is a legal requirement regardless of business size or industry. It covers compensation claims from employees who are injured or become ill as a result of their work, as well as your legal costs if a claim is brought against you. Read more in our What is employers' liability insurance blog.
What's the difference between public liability and employers' liability insurance?
Public liability insurance protects your business against claims from members of the public who are injured or suffer property damage because of your work. Employers' liability insurance protects against claims from your own employees who are injured or become ill as a result of working for you. If you have staff, you'll likely need both — employers' liability is a legal requirement, while public liability isn't, but is strongly recommended.
Is public liability insurance tax deductible?
Yes — business insurance is an allowable expense, which means you can deduct the cost when calculating your taxable profit. Make sure you keep your policy documents and receipts as records for HMRC. If you're unsure, speak to your accountant.
Do you provide evidence of cover?
For public liability insurance, you’ll receive proof of cover instantly which you can show your clients. If you choose to have employers’ liability cover, a Certificate of Employer’s Liability will be sent to you right away for display at your premises.
Why can I trust insurd?
We've been arranging insurance for over 50 years — now trading as insurd — and we're authorised and regulated by the Financial Conduct Authority (Firm Register Number: 308508), and over a thousand real customers have shared their experiences with us on Trustpilot.
You can verify our status directly on the FCA register.
Public liability guides for business owners
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