Public liability insurance is not a legal requirement in the UK, but many businesses find it essential. If you interact with customers, suppliers, or members of the public, there’s always a risk of accidental injury or damage to property. Having public liability insurance UK in place helps protect you from potentially high compensation claims and may be required by clients, venues, or local authorities before you can work with them.
FAQ Category: Public Liability
Standard public liability insurance covers injury or damage caused by your work or activities, but it doesn’t always include product liability as standard. Product liability insurance is separate cover designed to protect your business if a product you sell, supply, or manufacture causes harm or damage. Some insurers allow you to add product liability to your small business liability insurance policy for complete protection.
While liability insurance for small business offers valuable protection, it doesn’t cover everything. Typically, it won’t include:
- Injury to your employees (covered by employers’ liability insurance).
- Damage to your own property or business equipment.
- Poor professional advice or services (covered by professional indemnity insurance).
- Contract disputes, deliberate acts, or illegal activities.
Always check your policy wording to be clear on what isn’t covered by public liability insurance.
No — public liability insurance only protects against claims made by third parties such as customers, suppliers, or members of the public. If you employ staff, even part-time or temporary workers, you are legally required to have employers’ liability insurance. This separate cover protects you if an employee is injured or becomes ill because of their work.
Yes, it’s strongly recommended. If you’re self-employed and interact with clients or the public, you’re personally responsible for any claims made against your business. Public liability insurance for small business gives you peace of mind that one accident won’t put your livelihood at risk. Many clients also insist that freelancers and contractors have cover in place before starting work.