What Is Public Liability Insurance and Do You Really Need It in 2025?

You’re doing your job, just like any other day. Maybe you're fitting a customer’s boiler, delivering a fragile parcel, or helping someone move house. And then — it happens.

You accidentally crack a customer's tile. Or someone trips over your equipment. Or worse, someone gets injured on your watch.

Suddenly, you’re not just doing your job anymore — you’re facing a potential lawsuit.

This is where Public Liability Insurance steps in.

If you work with the public — whether you’re a courier, builder, cleaner, electrician, fitness instructor, or anything in between — then public liability cover isn’t just a “nice-to-have.”

It’s your safety net.

In this guide, we’ll break down exactly what it is, what it covers (and what it doesn’t), whether it’s legally required, and how much you really need.

We’ll also show you:

• The average cost of a claim in the UK

• Real-world scenarios where insurance saved businesses

• Why many freelancers get caught out — and how to avoid it

• How it links with courier insurance and goods in transit insurance

• Whether clients can refuse to pay if you’re not insured
  

Let’s dive in — because one small mistake could cost you thousands.

What Exactly Is Public Liability Insurance?

At its core, public liability insurance protects your business if someone is injured or their property is damaged because of your work. It doesn’t matter whether you’re a one-person operation or managing a small team — if a customer, supplier, or even a passerby gets hurt due to your business activities, you could be held liable.

And liability can be expensive.

According to the Association of British Insurers (ABI), the average public liability claim in the UK exceeds £13,500. Some cases shoot past £50,000, especially when injuries are involved.

Here’s a simple way to think about it:

If your business interacts with the public in any way, public liability insurance is what covers the “what ifs” — what if someone trips, what if a product falls, what if a customer blames you for damage?

Unlike employers’ liability insurance (which is legally required if you employ staff), public liability isn’t a legal requirement — but many clients and contracts won’t work with you unless you have it. Especially if you’re in construction, courier work, trades, or mobile services.

Still wondering if you need it? Let’s break it down.

Who Actually Needs Public Liability Insurance in the UK?

Here’s the short answer: anyone who deals with the public.

It doesn’t matter whether you run a market stall, operate a delivery van, or manage a growing trades business — if there’s any chance your work could cause injury or damage to someone else or their property, you need public liability insurance.

Let’s look at a few examples:

1. Self-Employed Tradespeople

If you're a plumber, electrician, builder, or decorator, you're regularly working in homes, offices, and public spaces. One small mishap — like a toolbox damaging a client’s flooring — could lead to a claim. And guess what? Most clients and contractors won’t even let you step on-site without proof of public liability cover.

2. Mobile Businesses

Hairdressers, makeup artists, dog walkers, yoga instructors — the list goes on. If you visit clients in their homes or invite them to your premises, you're exposed. A slip on your freshly mopped floor could cost you thousands without cover.

3. Delivery & Courier Drivers

Many couriers mistakenly think their van insurance covers everything. It doesn't. If someone trips on your ramp, or you damage property during a drop-off, that’s where public liability steps in. (Also check out our courier insurance for broader coverage.)

4. Landlords & Property Owners

If someone is injured while visiting your property — say, a loose paving slab causes a fall — you could be held liable. This is especially critical for those with unoccupied property where risk is higher.

5. Market Traders & Event Stallholders

Most event organisers require public liability insurance before giving you a pitch. One spilled coffee on a passerby, and suddenly, you're facing a personal injury claim.

Good to know: Even if you don’t legally need public liability insurance, you may need it contractually — many local authorities, event organisers, and commercial clients make it mandatory.

What Does Public Liability Insurance Actually Cover (and What It Doesn’t)

You’ve probably seen public liability insurance mentioned everywhere — but what does it actually protect you from?

Here’s a simple rule of thumb:

If your business accidentally causes injury or property damage to someone else, public liability insurance covers the cost.

Let’s break that down with real-world examples:

What It Covers

1. Injury to Third Parties

If a customer slips on a wet floor in your shop, or a passerby trips over your toolbox, public liability insurance helps pay for:

• Legal fees

• Compensation payouts

• Medical costs
  

Example: A carpenter working at a client’s home accidentally leaves a plank in the hallway. The homeowner trips, fractures their wrist, and sues. Your public liability insurance foots the bill — not you.

2. Damage to Property

If you (or your staff) damage someone’s belongings during your work, you’re covered.

Example: A courier accidentally knocks over a garden sculpture while delivering a package. The client wants it replaced. Your policy kicks in.

Check out our full courier insurance to see how public liability fits within a broader delivery risk package.

3. Legal Defence Costs

Even if you’re not at fault, you could still face expensive legal action. Public liability insurance often covers:

• Solicitor costs

• Court fees

• Out-of-court settlements
  

This peace of mind is why it’s a must-have — especially for small business owners and sole traders.

What It Doesn’t Cover

Just as important as what’s included is what’s not.

Here’s what public liability insurance won’t cover:

• Injuries to you or your employees (That’s employers’ liability insurance, not public liability)

• Damage to your own property or tools

• Professional mistakes (That’s professional indemnity insurance)

• Deliberate or illegal actions
  

Related Cover You May Need

Depending on your line of work, it might make sense to combine public liability with other policies, like:

• Business Insurance

• Employers’ Liability Insurance

• Goods in Transit Insurance

• Van Insurance
  

Bundling policies often reduces your premiums — and ensures there are no blind spots in your cover.

How Much Public Liability Insurance Do You Actually Need?

This is the million-pound question — literally.

And the answer?

It depends on your industry, risk exposure, and client requirements.

Let’s break it down.

Typical Cover Levels in the UK

Most public liability policies in the UK come in three main tiers:

Cover Level	Best For	Typical Premium
£1 million	Low-risk sole traders	~£60–£120/year
£2 million	Mid-sized trades & professionals	~£120–£250/year
£5 million	Events, construction, council work	~£300–£600/year

Larger projects or contracts (especially with local authorities) might require up to £10 million in coverage — but this is rare and usually part of a contractual obligation.

What’s Really at Risk?

Think about your worst-case scenario:

• You spill paint on a client’s antique rug (£2,000+).

• Your scaffold collapses and injures two pedestrians (£75,000+).

• A faulty product causes property damage and you’re liable (£20,000+).
  

Could you cover that out of pocket?Most businesses can’t.

That’s why we always recommend choosing a cover level that matches your financial exposure — not just the cheapest quote.

If you’re not sure how much you need, our business insurance page breaks it down by sector.

Industry Benchmarks: What Others Are Buying

According to UK Sure customer data:

• 85% of our construction clients opt for £5M+

• 60% of market traders and self-employed professionals go with £2M

• 90% of event organisers are required to carry £5M for venue access

  
  

So if you're in doubt — follow your industry norm.

Do Clients or Councils Set the Limit?

Yes — many do.

In fact, here are just a few real examples we’ve seen:

• A local council requiring £5M for mobile food vendors

• A property management company asking for £2M from cleaning contractors

• A retail chain demanding £10M from signage installation companies
  

At UK Sure, we customise your quote based on your contracts, so you’re never underinsured.

You can get a tailored public liability quote here.

Pro Tip: Future-Proof Your Policy

Clients change.

Contracts grow.

One day you’re doing small jobs — next week you’re bidding on a £100K project.

If you outgrow your policy limits and forget to upgrade? You could be personally liable for the difference.

That’s why we often recommend going one tier higher than what you think you need. The difference in price is usually small, but the peace of mind? Huge.

Let’s bring it home with the final section of the Public Liability Insurance pillar blog — this is where we tie it all together, encourage action, and embed trust signals to drive conversions.

Final Thoughts: Is Public Liability Insurance Worth It?

Let’s cut to it:

• If you deal with clients face-to-face…

• Work on someone else’s property…

• Or sell products that could potentially cause harm...
  

You need public liability insurance.

It’s not just a checkbox for compliance — it’s a shield that protects your livelihood, your reputation, and your future.

And when accidents do happen (because they do), the last thing you want is to be fighting a £25,000 claim… on your own dime.

Let’s Recap What You’ve Learned:

• What public liability insurance actually covers (and what it doesn’t)

• Who needs it (from plumbers to photographers)

• How much you should realistically be covered for

• The real-world risks of going uninsured

• How to get cover in less than 10 minutes
  

You’re now smarter than 90% of UK businesses searching for this topic.

So the question isn’t “Should I get covered?” — it’s “Why wouldn’t I?”

Why Choose UK Sure?

We’re not a faceless aggregator.

We’re UK-based, FCA-regulated insurance brokers who actually answer the phone.

We’ve helped thousands of self-employed workers, tradesmen, and SMEs across the country get protected — fast.

Real cover, no fluff.

Instant documents, no delays.

Human support, no chatbots.

Ready to Get Started?

If you're looking for fast, flexible, and fully compliant cover. Get your public liability insurance quote here.

Need more than just liability?

Check out our business insurance options or learn how to protect your tools with tool insurance.

Don’t leave your business exposed. Get covered today — before you need it.