Public Liability Insurance
One claim from a member of the public can cost thousands. Public liability cover protects your business so a single incident does not become a crisis.
Get in touchWhat is public liability insurance?
Public liability insurance covers your business if a member of the public, such as a customer, supplier or bystander, is injured or has their property damaged as a result of your business activities. It pays your legal defence costs and any compensation awarded, up to your policy limit.
Without it, you would be responsible for paying these costs yourself. For many small businesses, a single uninsured claim could be enough to cause serious financial difficulty.
It is not a legal requirement in the UK, unlike employers liability, but many clients, venues and contracts will insist on it before agreeing to work with you.
What is covered
- Third-party injury claims
- Third-party property damage
- Legal defence costs
What is not covered
- Products liability
Usually available as an add-on or separate policy
- Your own employees' injuries
Covered by employers liability insurance instead
- Damage to your own property
Covered by contents or buildings insurance instead
Who needs public liability insurance?
Tradespeople
Builders, electricians, plumbers and anyone working in clients' properties
Retailers and hospitality businesses
Anyone with customers or members of the public on their premises
Event organisers
Anyone running public or private events, markets or exhibitions
Consultants and freelancers
Client-facing professionals who meet people in person or visit sites
How much does public liability insurance cost?
£80 – £400 per year for most small businesses; higher-risk trades such as builders or tree surgeons may pay £500 – £1,500+
Type of business activity
high impactA roofer or demolition contractor pays significantly more than a photographer or yoga instructor. Insurers classify trades by their likelihood of causing third-party injury.
Annual turnover or contract value
high impactLarger turnovers mean more jobs and greater exposure. A plumber turning over £500,000 will pay more than one turning over £50,000 for equivalent activities.
Cover limit required
medium impactMost small businesses choose £1m or £2m. Many contracts and councils require £5m. Higher limits cost more but the difference is often modest.
Number of staff and subcontractors
medium impactMore people on site creates more opportunity for incidents. Some insurers also factor in whether you use labour-only subcontractors.
WHY CECIL
Built differently.
Find the right cover
Not every insurer is right for every business. Insurers who specialise in your sector means your policy reflects your actual risk, not a generic template.
Straightforward, plain English
We explain exactly what is and is not covered before you commit. No surprises when you need to make a claim.
Competitive pricing across the market
Your enquiry is passed to specialist UK brokers, so you receive options to compare on price and cover — not just whatever a single provider offers.
Fast quotes, no unnecessary forms
Tell us about your business and we will do the legwork. Most businesses get their options quickly, without lengthy paperwork.
Real claims: what public liability insurance covers
A customer trips on an uneven surface outside a shop
The policy covered the customer's compensation after they fractured their ankle and required physiotherapy
£22,000 — £16,000 compensation and £6,000 in legal fees
A plumber accidentally damages a customer's boiler while repairing pipework
The policy covered the cost of replacing the boiler and associated consequential damage
£4,800 total claim
A market trader's display stand falls and damages a neighbouring stall
The policy covered repair costs for the neighbouring trader's damaged equipment
£1,200 property damage claim
Common questions about public liability insurance
Is public liability insurance a legal requirement in the UK?
Public liability insurance is not required by law in the UK, unlike employers liability insurance. However, many contracts, venues and clients will insist on it as a condition of doing business with you, and some industry bodies require it for membership.
What does public liability insurance cover?
Public liability insurance covers compensation and legal costs if a member of the public is injured or their property is damaged as a result of your business activities. It covers injury claims, damage claims and the legal costs of defending a claim even if you are not found liable.
How much does public liability insurance cost?
Premiums vary significantly depending on your type of business, annual turnover, number of staff and the cover limit you need. Most businesses pay between £100 and £500 per year for a basic policy, though higher-risk trades can pay considerably more.
What is the difference between public liability and employers liability?
Public liability covers injury to or damage caused to members of the public. Employers liability covers injury to your own staff. Both are important: employers liability is a legal requirement for most businesses with employees, while public liability is not but is widely required by contract.
How much public liability insurance do I need?
The most common limits are £1m, £2m and £5m. Many clients, councils and venues specify a minimum — often £2m or £5m. Check your contracts before choosing a limit.
Does public liability insurance cover me working abroad?
Standard UK policies cover work in the UK only. If you undertake projects overseas you will need to check whether your policy extends to the relevant territory or arrange additional cover.
What is the difference between public liability and products liability?
Public liability covers injury or damage caused by your business activities or presence. Products liability covers injury or damage caused by physical goods you supply. Many businesses need both.
Can I get public liability insurance for a one-off event?
Yes. Short-term or event-based public liability cover is available for single events, markets or exhibitions. It is often far cheaper than an annual policy for occasional exposures.
Does public liability insurance cover property I am hired to work on?
Generally no. Most policies exclude damage to property in your care, custody or control. Specialist contractors' cover is usually needed for this type of exposure.
What happens if I am sued and I do not have public liability insurance?
You would need to fund your own legal defence and pay any compensation from your own resources. Costs can run to tens of thousands even for modest claims.
Industries that need this cover
Public Liability Insurance is commonly required across these sectors.
Interested in Public Liability Insurance?
We will be in contact when Cecil launches.