What is public liability insurance for the self-employed?

Full answer

Public liability insurance is one of the most commonly held policies among UK self-employed workers and small business owners, even though it is not a general legal requirement. **What it covers** Public liability insurance pays out compensation and covers legal defence costs if someone outside your business (a member of the public, a client, or a supplier, for example) is injured, or their property is damaged, because of your business activities -- common examples include a client slipping on wet flooring you were cleaning, a customer's laptop being accidentally damaged during a repair, or a passer-by being hurt by equipment on a job site. **Who commonly needs it** Tradespeople (electricians, plumbers, builders), personal trainers and fitness instructors, hairdressers and beauticians working from a salon or clients' homes, market stall holders, event organisers, and many other self-employed workers who interact with clients or the public in person typically take out public liability cover. **Not a legal requirement, but often contractually required** Unlike employer's liability insurance (which is a legal requirement for most businesses with employees), public liability insurance is not generally mandated by law for the self-employed -- however, many venues, letting agents, event organisers, and clients will refuse to let you work on their premises or for them without proof of a minimum level of public liability cover, often £1 million, £2 million, or £5 million depending on the industry. **Level of cover** The right level of cover depends on the nature of your work and the potential scale of harm it could cause -- a market stallholder may need less cover than a tradesperson working with power tools or ladders in clients' homes, where the potential for serious injury or property damage is higher. **How it differs from professional indemnity insurance** Public liability covers physical injury or property damage; professional indemnity covers financial loss caused by your advice, service quality, or professional errors -- many self-employed professionals who both work hands-on with clients and give professional advice hold both types of cover. **Worked example** A self-employed personal trainer accidentally injures a client while demonstrating an exercise. Public liability insurance would cover the resulting compensation claim and any legal costs, up to the policy limit. **Practical tip** Check any venue hire agreement, client contract, or trade association membership requirements carefully, since many specify a minimum level of public liability cover you must hold before you are permitted to work.

Try the calculator