Do I need public liability insurance?
Public liability insurance isn’t a legal requirement in the UK—but if your business interacts with the public, it’s often essential.
Without it, you could be personally liable for injury or damage claims that run into thousands.
That’s the key distinction: not required by law but still required to operate in practice. Many councils, venues, private clients, and trade bodies will expect you to have cover in place before they’ll let you work. And even when it’s not formally requested, the risks remain—because accidents don’t check paperwork.
A spilled drink on a laptop, a trip hazard on a doorstep, a smashed window from a stray tool—these are the kinds of incidents that trigger public liability claims. They don’t have to be dramatic. They just have to happen. And when they do, having insurance means you’re not facing legal costs, compensation payouts, or reputational damage on your own.
In this guide, we’ll look at who typically needs public liability cover, when it becomes essential, what it protects you from, and how much you can expect to pay. If you’ve ever asked yourself, “Do I really need this?”, you’ll find the answer here.
What is public liability insurance?
Public liability insurance covers you if a member of the public is injured or their property is damaged because of your business activities.
It helps pay for legal fees, compensation claims, and related costs—so you’re not left footing the bill alone.
Unlike employers’ liability (which protects your staff), this policy is all about third parties—passers-by, clients, visitors, or anyone affected by your work. That could be someone slipping on a wet floor at your premises, a cracked window caused by your equipment, or a client’s phone damaged during a home visit. Small accidents, big consequences.
It doesn’t matter if you’re self-employed, run a team, or only work face to face occasionally. If what you do brings you into contact with people or property you don’t own, this is the kind of insurance that protects you when something goes wrong.
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Get QuotesWho typically needs it?
If your work brings you into contact with members of the public—or their property—you almost certainly need public liability insurance.
It’s not about the size of your business. It’s about your level of exposure.
That includes a wide range of professions: tradespeople working on-site, mobile beauticians visiting clients, café and shop owners welcoming walk-ins, event organisers dealing with large crowds, and freelancers who occasionally meet clients face to face. Even if you only work from home, you might need cover if clients visit you—or if you carry out work at their premises.
It’s easy to assume that smaller businesses don’t need this type of cover. But in many cases, sole traders are more exposed. One accidental spill, trip hazard, or piece of faulty equipment can trigger a claim—and without insurance, the cost comes straight out of your pocket.
Whether you’re self-employed, part of a growing team, or just getting started, the moment your work crosses into someone else’s space, you’re operating with risk. Public liability insurance is how you manage it—professionally, responsibly, and affordably.
When is it legally required or contractually obligated?
Public liability insurance is not legally required by UK law—but in many industries, it’s a contractual necessity.
If you work with councils, landlords, venue operators, or larger businesses, you’ll often need proof of cover just to get through the door.
This requirement doesn’t come from government regulation. It comes from the risk management policies of your clients. A local authority might insist on £5 million in cover before approving a contractor for public works. A shopping centre could require insurance from every trader in its market hall. A private client hiring you to work in their home may want written confirmation that you’re insured.
Even platforms and marketplaces can demand it. Some event listing sites and service marketplaces require you to hold valid public liability insurance to accept bookings.
These are silent gatekeepers. There’s no fine for not having a policy—but you may find yourself excluded from work, tenders, or venues without one. If you’re not sure, check the small print of your contracts, supplier agreements, or booking terms. The requirement is often there—you just don’t see it until you need it.
What happens if I don’t have it?
If you don’t have public liability insurance and someone makes a claim against you, you’ll have to cover all legal and compensation costs yourself.
And depending on the situation, that could run into thousands—or tens of thousands—of pounds.
It doesn’t take much. A cracked phone screen, a sprained ankle, or minor property damage can all lead to claims. If the case goes to court, you could be facing solicitor fees, expert witness costs, court fees, and the claimant’s compensation—on top of any damage you caused. That’s a lot for any small business to absorb.
There’s also the reputational risk. If word spreads that you’re uninsured—or worse, that you dodged a claim—you may struggle to win new clients. Many clients assume insurance is in place as a baseline of professionalism.
And then there’s the knock-on effect. Some industry bodies, event organisers, and referral partners won’t work with you again if you’re found uninsured during a claim situation. So, the fallout isn’t just financial—it’s reputational and operational, too.
In short, the question isn’t whether you can afford the cover. It’s whether you can afford to go without it.
Do I need it if I work from home?
Yes—if you have clients visiting your home, or you carry out work at someone else’s property, public liability insurance is still important.
Working from home doesn’t automatically mean working without risk.
It’s easy to assume that home-based work means you’re insulated from liability. But if a client visits and trips over a loose cable in your hallway, or you drop their laptop while they’re at your kitchen table, you could be held responsible. Even if your main base is your home office, your work might still take you to other people’s homes, shops, studios, or job sites. That’s where the risk lives.
This applies to a huge range of trades and professions—freelance consultants who host meetings, beauticians with treatment rooms, personal trainers running sessions in the garden, even photographers or web designers who welcome clients to review work in person.
If your work ever brings the public into your home—or you into theirs—liability exposure follows. And without insurance, you’re on your own if something goes wrong.
What’s the cost?
Most small businesses in the UK pay between £50 and £250 per year for public liability insurance—but your exact premium depends on what you do, how you work, and how much cover you need.
If you’re a low-risk sole trader—like a cleaner, dog walker, or graphic designer working from home—you might pay as little as £50 a year for basic cover. On the other hand, tradespeople working on construction sites, tree surgeons, or anyone handling heat or hazardous materials may pay upwards of £200 or more. And if you need £5 million or £10 million in cover for council work or high-value contracts, your premium will adjust accordingly.
Insurers also look at where you work (public-facing venues vs private homes), whether you employ staff, and whether you’ve had previous claims. Even how often you’re out in the field versus working from a fixed location can make a difference.
For a full breakdown by industry, cover level, and business size, read our guide on how much public liability insurance costs in the UK.
Final thoughts
Public liability insurance isn’t legally required—but that doesn’t mean it’s optional. For any business that interacts with the public, it’s a smart, often necessary safeguard against accidents that can escalate into costly claims.
From tradespeople and market traders to home-based consultants and freelancers, the moment your work crosses into someone else’s space—or brings them into yours—you’re taking on risk. And in many cases, you won’t even get the job unless you’re insured. Councils, landlords, venues, and clients frequently ask for proof of cover before contracts are signed or bookings are confirmed.
Having public liability insurance isn’t just about ticking a box. It’s about knowing that if something goes wrong—an injury, a slip, a damaged laptop—you’re not facing the financial and reputational consequences alone.
If you’re still unsure whether you need it, ask yourself one question: Could your work ever cause harm or damage to someone else or their property? If the answer’s yes, then so is the answer to this article’s title.
Frequently Asked Questions (FAQs)
Yes, many insurers offer short-term public liability cover for one-off events like fairs, exhibitions, or markets. Policies can last from a single day to a few weeks.
In most cases, yes. Public liability premiums are considered an allowable business expense by HMRC and can be deducted from your taxable profits.
Not always. Some policies exclude subcontractors unless they’re declared. You may need to ensure they carry their own cover or be liable for their actions.
You’ll be personally liable for all legal and compensation costs. These can run into thousands and may include court fees, solicitor costs, and claimant damages.
Generally not—unless your work also brings you into physical contact with clients, such as product demos, photography sessions, or site visits.
No. It covers injury and damage, not poor workmanship or professional mistakes. For that, you’ll need professional indemnity insurance.
Absolutely. Sole traders and partnerships are eligible. Your business structure doesn’t affect your ability to get public liability cover.
Often yes—not by law, but by the organiser’s terms. Most markets, festivals, and public venues require proof of cover before allowing you to trade.