Public liability insurance
What public liability insurance covers, what limit UK businesses need, and what it typically costs in 2026.
Public liability covers you if your business injures someone or damages their property — a customer slipping on a wet floor, a delivery driver hurt on your forecourt, or damage caused while you are working at a client’s site. It is not a legal requirement, but it is close to unavoidable in practice: landlords, clients, local authorities and event organisers routinely require it before they will deal with you.
What limit do you need?
Limits are usually offered at £1m, £2m, £5m and £10m. The right answer is rarely a judgement call, because someone else usually specifies it for you. Check your lease, your client contracts, and any local authority or main contractor requirements before deciding — many specify £5m as a minimum, and public sector work frequently requires £10m.
The step up in limit is cheaper than people expect
Moving from £1m to £5m of cover usually costs far less proportionally than the extra cover suggests, because large claims are rare. If your work brings you into contact with the public regularly, the higher limit is normally worth taking.
What it does not cover
- Injury to your own employees — that is employers’ liability, which is legally required.
- Harm caused by a product you sold — that is product liability, usually bought alongside.
- Financial loss caused by your professional advice or work — that is professional indemnity.
- Harm arising from a treatment you performed — that is treatment risk, essential for salons, clinics and gyms.
- Damage to your own property.
The most common misunderstanding in small business insurance
Public liability does not respond to a claim about the quality of your work or a treatment you carried out. A chemical burn from a colour service, a poor result from a beauty treatment, or a client’s financial loss from your advice all sit outside it. If your business does any of those things, the cover you actually need is a different one.
What drives the price
- Your trade — a scaffolder and a bookkeeper are not remotely comparable risks.
- Whether the public come to you, or you go to them.
- Turnover, as a proxy for exposure.
- The limit of indemnity you choose.
- Claims history over the last five years.
Public liability insurance: frequently asked questions
Is public liability insurance a legal requirement in the UK?+
No — unlike employers’ liability, it is not required by law. But it is required by so many landlords, clients, contracts and licensing conditions that most businesses cannot trade normally without it. Check your lease and client contracts before deciding you do not need it.
How much public liability cover do I need?+
Usually whatever your contracts specify rather than what feels sufficient. £1m is the common entry point, £5m is frequently specified by landlords and main contractors, and £10m is normal for public sector or large commercial work. Since the step up is proportionally cheap, err upwards if you deal with the public regularly.
Does public liability cover my staff?+
No. Injury to your own employees falls under employers’ liability insurance, which is legally required from the moment you employ anyone — including part-time, casual and family members. The two are separate covers and both are normally needed.
Cover usually bought alongside this
How this page is produced
Written by My Energy Deals Ltd and reviewed by Arkwright Insurance Brokers Limited (FCA firm reference 434855).
mybusinessdeals is an introducer, not an insurer and not an FCA-authorised broker. This page is general information about types of cover, not a personal recommendation or advice on which policy to buy. Any policy is arranged by, and you contract directly with, our FCA-authorised partner or their panel. Premium figures are indicative market ranges, never a quote.
Last reviewed 3 September 2026.
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