What is Public Liability Insurance?
Public liability insurance protects you if your work causes injury to someone or damage to their property. If a member of the public, a client, or a third party suffers loss because of your business activities, they could make a claim against you.
Public liability covers:
- Compensation payments to the injured party
- Legal fees to defend the claim
- Court costs if the case goes to trial
Without insurance, you'd have to pay these costs yourself. A single serious claim could bankrupt an individual tradesperson or small business.
Why Tradespeople Need Public Liability
As a tradesperson, you work in other people's homes and businesses. You use tools and equipment that could cause damage. You create situations where accidents can happen. The risks are real:
- A customer trips over your tools and breaks their wrist
- You accidentally drill through a water pipe and flood the property
- Your ladder damages a client's car
- Dust from your work triggers a customer's asthma attack
- A fire starts from hot works you're carrying out
Even if you're careful, accidents happen. And even if you're not at fault, you may still need to defend yourself against a claim—which costs money.
Client Requirements
Many clients won't hire you without public liability insurance. This is especially true for:
- Commercial clients and businesses
- Main contractors on construction sites
- Local authorities and public sector work
- Property management companies
- Insurance-required domestic work
What's Covered by Public Liability?
Injury to Third Parties
If someone is injured because of your work, public liability covers the compensation and legal costs. This includes injuries at your work site, injuries caused by your products or completed work, and injuries from your tools or equipment.
Damage to Third-Party Property
If you damage someone else's property while working, public liability covers the repair or replacement costs. This includes the property you're working on, neighbouring properties, and customers' belongings.
Legal Defence Costs
Even if a claim is unfounded, you'll need to defend yourself. Public liability covers legal fees, expert witnesses, and court costs.
How Much Cover Do You Need?
Public liability policies are available with different limits, typically:
- £1 million: Minimum for most trades
- £2 million: Common requirement for domestic work
- £5 million: Often required for commercial work
- £10 million: Required for some main contractors
Factors to Consider
- What do your clients require?
- What's the potential severity of claims in your trade?
- Do you work in high-value properties?
- Do you work near expensive equipment or stock?
- Are you working on construction sites with multiple contractors?
For most tradespeople, £2 million is a sensible minimum. If you work for commercial clients or on larger projects, £5 million is often required. The premium difference between limits is usually modest, so don't underinsure to save a few pounds.
Common Public Liability Claims
Understanding common claims helps you appreciate the risks:
Electricians
- Faulty wiring causing fire
- Electric shock to customer
- Damage to customer's electrical equipment
Plumbers
- Water damage from leaks
- Flooding from burst pipes
- Damage to flooring and ceilings
Builders
- Structural damage to property
- Injury from falling materials
- Damage to neighbouring properties
Roofers
- Water ingress from incomplete work
- Falling tiles injuring passersby
- Damage from scaffold collapse
Getting the Right Cover
When arranging public liability insurance, you'll need to provide:
- Your trade or occupation
- Annual turnover
- Number of employees (if any)
- Types of work you carry out
- Whether you do any work at height
- Whether you use heat or hot works
- Claims history
Be accurate and honest when providing this information. If you misrepresent your business, your insurer could refuse to pay claims. If you also work on construction projects, consider contractors' all risks cover.
Choosing a Policy
Look for a policy that:
- Covers all the types of work you do
- Has adequate limits for your clients' requirements
- Includes legal defence costs in addition to the limit
- Has reasonable excess levels
- Comes from a reputable insurer
Important Disclaimer
This article is for general information only and does not constitute insurance advice. The specific terms, conditions, and exclusions of any policy will vary. Always read your policy documentation carefully and speak to a qualified broker for advice tailored to your circumstances.
Found this helpful?
Share it with others who might benefit.