Public liability insurance typically costs a UK business around £60–£150 a year for a low-risk trade (consultants, office-based work) and £150–£400+ for higher-risk trades (construction, tradespeople), driven mainly by your trade, cover limit and claims history. It covers claims from members of the public or other businesses for injury or property damage connected to your work. Here is what moves the price and how to compare cover properly.
Key takeaways
- Public liability is not a legal requirement, but most landlords, clients and commercial contracts insist on it.
- Trade classification is the biggest single driver — a low-risk office trade pays far less than a roofer.
- Common cover limits are £1m, £2m, £5m and £6m; many contracts specify a minimum before they will engage you.
- The cheapest premium is not the best deal if the cover limit, excess or exclusions do not fit your risk.
- Under-declaring turnover or activities to cut the premium can get a claim reduced or refused.
How much does public liability insurance cost?
The table shows indicative annual premium ranges for £1m–£2m of cover by trade type in 2026 — a benchmark to compare a quote against, not a quote. Your actual premium depends on the factors below.
| Trade type | Example | Indicative annual premium |
|---|---|---|
| Low risk | Consultant, office-based, tutor | £60–£120 |
| Medium risk | Shop, salon, café, cleaner | £100–£200 |
| Higher risk | Tradesperson, electrician, plumber | £150–£350 |
| High risk | Construction, roofing, scaffolding | £300–£600+ |
What drives your premium
- Trade classification — what you actually do, and how much public contact and physical risk it carries.
- Cover limit — £5m or £6m costs more than £1m; pick the limit your contracts require, not the biggest available.
- Turnover and headcount — bigger operations present more risk and cost more to cover.
- Claims history — past claims raise the price; a clean record lowers it.
- Excess — a higher voluntary excess reduces the premium, but you pay more toward any claim.
Declare accurately
Under-stating your turnover or the work you do to get a cheaper quote is one of the most common reasons a claim is later reduced or refused. Insurers check the details you gave at the point of a claim — get them right up front.
How to compare public liability insurance
- 1Confirm the cover limit your contracts require before you compare — usually £1m, £2m or £5m.
- 2Compare like-for-like: same limit, same excess, same declared activities.
- 3Check exclusions and whether tools, stock or professional advice need separate cover.
- 4Re-benchmark at renewal rather than letting the policy auto-renew.
How we source these figures
The ranges above are indicative UK market ranges for benchmarking, not live quotes. Your premium depends on your trade, cover limit, turnover and claims history. Reviewed 2026.
Compare public liability insurance for your trade
Tell us your trade and the cover limit you need and we will benchmark public liability quotes across the market — the right cover, without overpaying.
Compare public liability insuranceFrequently asked questions
How much is public liability insurance in the UK?+
Indicatively in 2026, a low-risk business pays around £60–£150 a year for public liability, while higher-risk trades such as construction pay £300–£600 or more. The main drivers are your trade, the cover limit and your claims history.
Is public liability insurance a legal requirement?+
No, public liability is not legally required for most businesses. However, most landlords, clients and commercial contracts require it before they will work with you, so in practice it is often unavoidable.
What cover limit do I need?+
Common limits are £1m, £2m, £5m and £6m. Many contracts specify a minimum limit before they will engage you, so check your contracts first. Buying far more cover than your contracts require or your risk justifies is a common way to overpay.
How can I lower my public liability premium?+
Match the cover limit to what your contracts actually require, keep your trade and turnover declarations accurate, consider a higher voluntary excess, and re-benchmark the market at renewal rather than auto-renewing.
About this guide
The mybusinessdeals energy team benchmarks UK business gas and electricity contracts against the whole market.