Public liability insurance

How much cover you need depends on your industry and business activities as well as any contract requirements. For example, working near busy public areas can increase the risk of a claim from multiple people, while working at height or with hot materials can be hazardous and carry a higher risk. 

You can choose from £1 million up to £10 million public liability cover. 

This might sound high when you think about how much your equipment and stock is worth, but that comes under business contents and stock cover. Public liability is to help protect you for things like injury claims if someone trips because of your business activities. Compensation and legal costs can get expensive, so cover limits are high to help protect your business if the worst happens.

No. Public liability insurance doesn’t cover injuries to your employees. You’ll need employers’ liability insurance for this instead, which is usually a legal requirement if you employ staff. The main exception is unincorporated family businesses when all the employees are family members

Yes, you can get public liability insurance even if you work from home or run an online-only business. Cover applies if clients or members of the public visit your home for business purposes and are injured or suffer property damage as a result.

Freelancers don’t need public liability insurance by law, but it’s worth considering if your work involves visiting clients, working on-site, or interacting with members of the public. A single compensation claim – even a minor one – can be costly and can impact not only your business but also your own finances (depending on how your business is structured).

Public liability insurance can cover claims for accidental physical injury or property damage caused to a third party. Professional indemnity insurance covers claims arising from a professional mistake, bad advice, or a failure to deliver a service – where a client suffers a financial loss as a result. They help protect against different types of risk, and many businesses need both.

For example, a marketing consultant who accidentally damages a client’s laptop at a meeting would claim using their public liability cover. But if that same consultant gave flawed strategic advice that led to a costly campaign failure, that’s a professional indemnity claim.

• public liability – physical harm or property damage to a third party
• professional indemnity – financial loss caused by an error, omission, or negligent advice

Yes. Public liability insurance is available as a standalone policy or as part of a wider business insurance policy. If you already hold a business insurance policy, you may be able to add public liability cover – along with other covers like tools insurance or professional indemnity – without having to take out a separate policy. Check our full list of covers to see what else you might need.

Public liability insurance can cover you at events, fairs, and markets – but you should check that your policy includes this before you go. Many event organisers require proof of public liability cover, typically a minimum of £1 million or £2 million, before they’ll allow you to trade.

If you sell products at events, check whether your policy also includes product liability cover. Not all insurers include this as standard, and it’s a separate but related risk.

No. Simply Business doesn’t offer short-term or temporary public liability insurance. Policies are typically sold as annual cover, with the premium payable on a monthly or annual basis. Monthly payments are via premium finance provided by a third party company and include interest charges.

There may be other providers that offer short-term cover. But if you work with the public on a regular basis, an annual policy is likely to be more cost-effective than repeated short-term cover.

Without public liability insurance, you’d need to pay legal defence fees and any compensation awarded directly from your own funds. Claims can be expensive, so it’s important to consider the level of cover you need for your specific business.

No, public liability insurance isn’t a legal requirement in the UK. However, many contracts, landlords, and client agreements require you to hold a minimum level of cover before you can start work.

Yes, you can usually change your level of public liability cover during your policy year. Simply Business doesn’t charge an admin fee for making changes to your policy. However, if the change increases the level of risk, your insurer may charge an extra premium to reflect that.

• for example, if you increase your cover limit from £1 million to £2 million, you may pay a higher premium from that point forward
• reducing your cover mid-year may result in a partial refund, depending on your insurer’s terms
• it’s a good idea to review your cover level if your business grows, you take on bigger contracts, or a client asks for a higher limit

In many cases, yes. If you work across more than one trade or business activity, you may be able to include multiple activities under a single public liability policy. Simply Business covers over 1,700 trades, and when you get a quote, you can tell us about all the work you do so your cover reflects the full picture.

• it’s important to declare all your business activities when you get a quote – if you leave something out and a claim arises from that activity, your insurer could refuse to pay
• some combinations of trades may affect your premium, as insurers assess the overall risk of your work
• if you’re unsure whether your activities are covered, our UK-based insurance experts can talk you through your options