Public Liability Insurance

What is public liability insurance?

Public liability insurance is a type of business insurance that pays the legal fees, compensation claims and other costs that arise when a third party is injured or their property is damaged because of your business. That includes accidents on your business premises and accidents caused by your activities in public areas.

Whether you run a small business or a larger company, the risk of an accident or injury is always there when you deal with the public. Public liability cover is designed to protect the business financially when something goes wrong.

Who needs public liability insurance?

Any business that interacts with the public, whether face to face or through its products and services, should consider public liability insurance. Businesses that commonly take it out include:

• Restaurants and cafes
• Retail stores
• Tradespeople, such as plumbers, electricians and builders
• Event organisers
• Sports teams and clubs

Even where you are not legally required to hold it, public liability insurance is worth considering to protect your business from the unexpected.

What does public liability insurance cover?

Public liability insurance can cover a range of situations where a third party suffers a loss because of your business, including:

• Injury or death of a third party
• Damage to third-party property
• Legal fees and compensation costs
• Medical expenses for the injured party
• Loss of income or revenue as a result of the incident

The exact cover and the limits that apply depend on the policy and the insurer you choose, so read the policy wording before you buy.

What does public liability insurance not cover?

Public liability insurance is for claims made by third parties, so it does not cover injury to your own employees or damage to your own property. Claims from your staff fall under a separate policy, employers' liability insurance.

Every policy also has its own exclusions and an excess, the amount you pay towards any claim. Check both carefully when you compare quotes so you know exactly what you would be covered for.

Is public liability insurance a legal requirement?

Public liability insurance is not generally a legal requirement for UK businesses, but it is strongly recommended for anyone who deals with the public, works on other people's premises or operates in public places. Some clients and contracts may also expect you to hold it.

Employers' liability is a different cover that applies to the people who work for you. If you employ staff, read our guide to employers' liability insurance alongside this one.

How much does public liability insurance cost?

The annual premium for public liability insurance typically ranges from a few hundred to a few thousand pounds. What you pay depends on several factors:

• The size of your business, including how much work you do and how many people are involved
• The industry you are in, as some trades carry a higher risk of injury or damage than others
• The level of cover you require, since a higher limit of indemnity costs more

When comparing prices, weigh up the cover limits, excesses and exclusions as well as the premium, so the policy actually fits your business.

How do I compare public liability insurance quotes?

Fill in one short form about you and your business, and you can compare live quotes online from a panel of UK business insurers. Quote Goat provides access to the comparison service; you buy your chosen policy directly from the insurer or its partner.

Comparing several insurers side by side lets you see how the cover limits, excesses and exclusions differ, not just the price, so you can pick the policy that suits the way your business works with the public.