Who needs public liability insurance?

Public liability insurance is recommended for any business or self-employed individual who interacts with the public, clients, or third parties, or works on client premises. While rarely a strict legal requirement, it is essential for covering compensation claims for bodily injury or property damage, with common users including shops, cafes, salons, tradespeople (builders, plumbers), and event organisers.

How do I know if I need public liability?

You need public liability insurance if your business interacts with the public, visits client premises, hosts events, or operates from a space clients visit, as it covers claims for injury or property damage, protecting you from potentially devastating financial costs, even if it's often not legally mandatory for most businesses. Ask yourself if clients, customers, or the general public could get hurt or their property damaged due to your work; if the answer is yes, you likely need it. 

Who should have public liability?

If your business comes into contact with members of the public or customers. Or if there is potential that your could cause damage to property then you may need Public Liability insurance.

Do all self-employed people need public liability insurance?

Do I need sole trader liability insurance? Public liability insurance isn't a legal requirement for sole traders. But there are very few businesses that can safely operate without it. Whether you're a florist or a plumber, you're likely to be exposed to risks that may require public liability cover.

Do you need public liability insurance as a limited company?

Public liability insurance is not a legal requirement, but many business owners buy it in case a third party makes a claim against them. Public liability insurance might be particularly helpful if: You own a business which involves day-to-day interaction with the public, such as a shop, restaurant, or hair salon.

Understanding Public Liability Insurance: Essential Coverage for Small Businesses

What is the minimum turnover for a Ltd company in the UK?

UK limited companies have no minimum turnover requirement, meaning they can legally exist without generating income. However, directors must still meet compliance obligations, including filing annual accounts, confirmation statements, and Corporation Tax returns when active.

What is minimum public liability insurance?

Often the amount of cover you require will be dictated by the contracts you enter into. If your business is doing any work within shopping centres you will often find that the contract stipulates public liability of at least $20 million. The same is true of many government contracts.

What is the minimum public liability insurance in the UK?

Because claims against businesses can run into the hundreds of thousands, or even millions, of pounds, a good public liability insurance policy should cover you for at least £1million. This might seem like a lot, but it's important not to be underinsured.

What happens if you have no public liability insurance?

In the event of an accident, a company will not only be prosecuted for having no public liability insurance, it will remain liable to the injured party and have to pay all the compensation, its own legal costs and the claimant's costs out of its own funds however in many cases this would result in the company ceasing ...

How much is public liability insurance per month?

On average, small business owners can expect to pay around $39 per month* for Public Liability insurance. Public Liability insurance is one of the most popular types of insurance for businesses. Public Liability insurance can cover a wide range of industries and occupations, and the cost of it can vary greatly.

Is public liability insurance worth it?

Public liability insurance isn't usually a legal requirement, but it comes recommended if you own a business or work independently and regularly interact with the public, clients and contractors. Accidents happen, so it can help to get one step ahead of them.

What is covered under public liability?

Public Liability Insurance protects you and your business if it's shown your negligence led to someone being injured or having their property damaged. For example, if the floor in your shop is wet and a customer slips and hurts themselves, or you're cleaning a client's house and you accidentally break a window.

Who is exempt from needing employer liability insurance?

Exempt businesses

Some businesses are not required to have employers' liability insurance, including: companies with no employees. family businesses that employ only family members.

How much does it cost to have public liability?

Low-risk sole traders can secure policies from around $39 a month, while high-risk operators—think scaffolding or large events—may face premiums well above $20,000. The figure on your quote hinges on industry risk, turnover, cover limit, location and any past claims. Price, though, is only half the story.

What happens if I can't get public liability insurance?

You Could Be Personally Liable for Claims

If your business causes injury to a customer, client, or member of the public, you may be held legally responsible for compensation and legal costs. Without Public liability insurance, your business must pay these costs out of pocket. This can include: Medical expenses.

Do I need public liability insurance for a private party?

Public liability insurance is not required by law for a private party, but for parties with members of the public such as street or garden parties, insurance is mandatory. However, we highly recommend arranging insurance which protects you from losing out financially in the event of a claim.

What are the risks of not having liability insurance?

The Risks of Operating Without General Liability Insurance

Not buying general liability insurance exposes your business to several risks. These can result in claims and lawsuits that can quickly escalate through legal fees, court costs, and other case-related expenses.

Is it illegal to work without public liability insurance?

There is no law that requires your business to have public liability insurance. However, some large organisations require you to have it, and will not do business with you unless you are insured.

How much is basic public liability?

Minimum cover levels start at around £1 million to £2 million. This may be sufficient if you have a small business and limited contact with the public. If your work is high risk or you work on government contracts, you may need a minimum of £5 million to £10 million public liability coverage.

What happens if I don't have public liability insurance?

Operating without public liability insurance can result in severe legal ramifications, even if it isn't a legal requirement to have this type of cover. Not having this insurance can lead to lawsuits, legal fees and significant compensation costs.

What level of public liability cover do you require?

This depends on the business size and industry, as ultimately, these factors affect a company's level of risk. That means you could choose anywhere from $5 million to $20 million, depending on your business needs. Public liability insurance is included in some small business insurance policies.

Do I need public liability insurance as a freelancer?

Public liability insurance is strongly recommended for anyone who is their own boss. If something happens to a member or members of the public as a result of your work – like an accident, injury or property damage – then you're liable for legal fees, expenses, and compensation pay-outs.

Is 1m public liability enough?

Levels of public liability cover vary and the amount you need depends on the type of work you do and the area in which you operate. For example, if you are a plumber and only work in private houses £1m or £2m may be more than enough.

What level of public liability cover do I need?

Ultimately, it is that level of risk that will help determine how much cover you think is appropriate. Occupations in certain industries that tend to be classified as a higher risk – for example: builders, electricians, window cleaners etc – may benefit from choosing a higher level of cover.

What is basic public liability?

It'll protect your business against damage and the cost of legal claims people make against you, if you've done something that's resulted in injury to a member of the public or damage to their property.