Public liability insurance explained
What is public liability insurance?
Public liability (PL) insurance covers your business if a third party — a customer, member of the public, or visitor — suffers injury or property damage as a result of your business activities. It covers the cost of legal defence and any compensation awarded.
Who needs public liability insurance?
Any business that interacts with clients, customers, or the public — whether at its own premises or at client sites — should consider public liability insurance. This includes: tradespeople; retailers; food and hospitality businesses; event organisers; consultants; and contractors. It is frequently a contractual requirement.
Public liability vs employers' liability
Public liability covers claims from third parties (customers, members of the public). Employers' liability (EL) covers claims from your own employees if they are injured or become ill as a result of their work. EL insurance is a legal requirement for most employers in the UK, with a statutory minimum cover of £5 million.
How much cover do I need?
Use our public liability calculator to compare how different cover limits relate to your contractual requirements and potential claim exposures. A commercial insurance broker can advise on the appropriate limit for your specific business activity.
Frequently asked questions
Public liability insurance is not a statutory legal requirement for most businesses. However, it is often required contractually — for example, by councils granting permits for events, or by clients requiring contractors to hold a minimum level of cover. Employers' liability insurance (minimum £5 million) is a legal requirement for most employers.
Common limits are £1 million, £2 million, £5 million, and £10 million. The right limit depends on your business type, the contracts you hold, and the potential size of a third-party claim. Many public sector and large commercial contracts require a minimum of £5 million or £10 million.
Public liability covers claims arising from your business activities. Product liability covers claims arising from a defective product you have manufactured, supplied, or sold. Both are often included in a combined business insurance policy.
Not legally, but it is often sensible and may be required by clients or venues. If a client or member of the public were injured or suffered property damage as a result of your work, a public liability claim could be significant.
Related calculators
Business insurance
Public Liability Calculator
Think through how much public liability cover your business might need.
Business insurance
Business Interruption Calculator
Estimate your business interruption insurance exposure based on revenue, costs, and recovery time.
Business insurance
Cyber Insurance Cost Estimator
Gauge the potential cost of a cyber incident and get an illustrative insurance cost band.
Disclaimer
This is a simplified estimate based on the assumptions shown above. It isn't a quote, and a real insurer may arrive at a different figure. Use it as a starting point, then check the details with your insurer or adviser.