How much does public liability insurance cost in the UK?

Public liability insurance is a type of business cover that protects you if a member of the public suffers injury, illness, or property damage as a result of your work.

It’s designed to cover legal fees, compensation costs, and other associated expenses if someone brings a claim against you.

While it’s not legally required in the UK, many businesses treat it as essential—especially those that interact face-to-face with customers, work on client premises, or operate in public spaces. Think builders, hairdressers, café owners, plumbers, yoga instructors, DJs. If your work involves real-world interaction, there’s a chance something could go wrong—and that’s what this policy is designed to handle.

It’s also worth knowing that many venues, local authorities, and event organisers require you to have a minimum level of public liability insurance—usually between £2 million and £5 million—before they’ll even work with you.

If you’re a freelancer, sole trader, or small business wondering “Do I actually need this?”—ask yourself one thing: Does your work bring you into contact with members of the public, their property, or third-party spaces? If the answer’s yes, this cover isn’t just useful. It’s smart risk management.

Related Read: Do I Need Public Liability Insurance?

Yes, in many cases sole traders do pay less for public liability insurance—particularly if they work in low-risk industries and don’t employ staff.

Insurers assess risk based on public exposure, business size, and the complexity of the work involved. Sole traders typically operate on a smaller scale than limited companies, which can mean fewer opportunities for third-party injury or damage. That lower risk often translates to lower premiums.

Take a self-employed personal trainer who works outdoors or from clients’ homes. Their exposure is minimal compared to a gym operator with employees and a lease. The trainer might pay around £60 to £90 per year for £2 million of cover. In contrast, a small fitness studio with two employees could see that cost double or more.

But cheaper doesn’t always mean better. Some sole traders—like electricians, tree surgeons, or mobile caterers—still carry significant risk despite being solo. Their premiums might start closer to £120 to £180 annually, depending on the tools they use and where they work.

Another factor is that many sole traders underestimate their risk profile. For instance, a wedding photographer may not realise they’re liable if a guest trips over their tripod. That’s where cost shouldn’t override adequacy—especially if client contracts require a minimum level of cover (often £2M to £5M).

So while being a sole trader can help reduce your premiums, it’s not a guarantee. Your risk exposure, industry, and working environment still carry the biggest weight when insurers calculate your quote.

Public liability insurance costs don’t rise in a straight line as cover increases. The first £1 million of cover is often the most expensive. After that, adding more tends to be incrementally cheaper—making higher levels surprisingly affordable for many businesses.

Let’s look at some averages:

 
Here’s the surprising bit: some providers offer £10M cover for as little as £118.92 per year—barely more than the average £2M policy. This is because the additional layers of coverage (known in underwriting as “excess layers”) are statistically less likely to be used and therefore cheaper to provide.

But don’t be fooled by the pricing alone. The right amount of cover often comes down to what your clients or contracts require. Councils, property managers, or public event venues often set minimum thresholds of £5M or £10M before work can begin.

One thing to be wary of is overpaying for levels you don’t need, especially if you’re a small operation with limited public interaction. On the flip side, underinsuring could cost you a contract—or worse, leave you financially exposed if a claim exceeds your cover.

If you’re unsure, the smart play is to look at:

• What your peers in the same trade typically hold
• Any insurance requirements written into your contracts
• Your claims risk (location, type of work, client exposure)

Higher cover isn’t always necessary. But when it is, it’s often more accessible—and more affordable—than business owners expect.

You can reduce your public liability insurance costs by managing risk, presenting your business accurately, and choosing the right payment structure—but savings should never come at the expense of essential cover.

Start with risk. Insurers price policies based on the likelihood and potential size of a claim. So if you can demonstrate that you actively manage risk—through health and safety training, risk assessments, or method statements—you may be eligible for a lower premium. Some providers even offer discounts to businesses with robust risk controls in place.

Next: accuracy. Many small business owners unknowingly drive up their premiums by overestimating turnover, misclassifying their trade, or failing to mention that they don’t actually work with the public directly. Being precise when filling in quote forms helps insurers price your policy fairly.

A few other practical ways to lower your premium:

• Pay annually rather than monthly: It’s usually cheaper over the year, as monthly plans often include interest or admin fees.
• Avoid unnecessary add-ons: Don’t pay for cover types you don’t need—like tools or stock insurance—if they don’t apply.
• Maintain a clean claims history: While easier said than done, a claim-free record is one of the biggest trust signals for insurers.
• Bundle your cover: If you need other types of insurance (e.g. employers’ liability or professional indemnity), buying them as part of a combined package can bring discounts.

The key is to balance savings with protection. Cutting corners on cover might save you a few pounds now, but leave you dangerously exposed later. Focus instead on being low-risk, transparent, and strategic with your policy options.