Public Liability Insurance
The Role of Public Liability Insurance for UK Businesses
Public liability insurance protects your business if a member of the public is injured or their property is damaged because of your work.
For many of the SMEs we support, such as tradespeople, restaurants, wholesalers, retailers and property owners, issues often arise during everyday tasks, including a customer slipping in a hospitality setting, damage caused while working in someone’s home or an item being knocked over in a busy shop or warehouse.
If a third party holds your business responsible, this cover helps with legal defence, compensation, and other costs associated with managing a claim. It’s particularly important for businesses that regularly interact with customers, visitors, suppliers or contractors, and is often required by trade bodies, landlords or larger contracts.
With all policies arranged with FCA-authorised insurers, you can have confidence that your cover meets regulated standards.
Why Choose this Cover?
Although public liability insurance isn’t legally required, most SMEs depend on it because accidents can quickly disrupt day-to-day operations. If someone is injured or their property is damaged and your business is blamed, the policy helps control the financial fallout and keeps work moving. It also helps you meet the insurance standards many contracts expect, reducing the risk of delays or lost opportunities.
Choosing a Limit
Most policies start at around £1 million, although you can select a higher level if your work involves larger projects or higher-value property. Think about the type of jobs you take on, the environments you work in and any conditions set by clients or suppliers. Many businesses choose a limit above the minimum because the extra protection usually adds only a small amount to the price.
What’s Included in Our Public Liability Cover?
Accidental injury or property damage
Covers claims made by clients, customers or members of the public if your work caused injury, illness, death or damage to property. This includes on your premises or out on site.
Legal defence & compensation costs
If a claim is made against you, we cover legal representation, court costs and any compensation you’re required to pay, helping you protect your business finances.
Flexible cover limits
Choose the level of protection that fits your work. Increase or adjust your cover as your business grows.
Cover for incidents on your premises or off-site
Applies whether you work from your own premises, visit clients or carry out work in public spaces.
Deliberate or reckless acts
Damage or injury caused intentionally or through reckless behaviour is excluded from public liability insurance.
Professional advice or service errors
Claims arising from bad advice or professional mistakes aren’t covered under public liability. Professional indemnity insurance provides this protection.
Damage to your own property
Public liability covers third-party property only. To protect your business buildings, tools or equipment, you’ll need additional business property insurance.
Injury to employees
Accidents involving staff are not covered. Employers’ liability insurance is needed for this.
Why Icon Risk
✓ Specialist knowledge of UK business insurance
✓ Cover set up around your specific activities
✓ Personal broker support
✓ Clear summaries of key risks and exclusions
✓ Help choosing appropriate limits and options
✓ Practical help throughout the claims process
✓ Policies that can adapt to business changes
✓ Fast quotes and outstanding customer service
FAQ’s
What is public liability insurance?
Public liability insurance is a type of business cover that helps protect you if a member of the public is injured or their property is damaged and they believe your work is to blame. It can pay for legal representation, compensation and other costs linked to a claim.
What risks does public liability insurance cover?
It covers legal and compensation costs if a member of the public claims they were injured or their property was damaged because of your business activities.
Do I need public liability insurance?
If you work with customers, operate from a premises, visit client sites or interact with the public, it’s strongly recommended and often required for contracts, events or trade work.
How much public liability insurance do I need?
Most small businesses choose £1–5 million of cover. Consider the value of the property you work around and any contract requirements when selecting a limit.
Is public liability insurance a legal requirement?
No, but many clients, landlords and suppliers won’t work with you without it.
Does it cover my employees’ actions?
Yes, if an employee causes accidental injury or property damage to a third party. However, injuries to employees require separate employers’ liability insurance.
Is public liability insurance tax-deductible?
Yes. It’s an allowable business expense.
What is the difference between public liability insurance and employers’ liability insurance?
Public liability insurance covers claims made by customers, visitors or other members of the public. Employers’ liability insurance covers injury or illness suffered by employees. Most UK businesses that employ staff must have employers’ liability cover by law, while public liability insurance is optional but still widely used.