What Public Liability Cover Includes for UK Businesses
Public liability cover is designed to protect UK businesses if a third party claims they were injured or their property was damaged because of your business activities. Knowing what is typically included, what is excluded, and how limits and excesses work can help you choose cover that matches the real risks of your day-to-day work.
Public liability cover is one of the most common types of protection UK firms consider, especially when members of the public, clients, or suppliers could be affected by your work. It can reduce the financial shock of a claim, but the details vary by insurer, industry, and how you operate. Understanding the standard inclusions and the common gaps is key to avoiding surprises at claim time.
Business insurance and public liability basics
Public liability insurance usually sits within a wider business insurance setup that may also include employers’ liability (often a legal requirement if you employ staff), professional indemnity (for advice and design work), tools and equipment cover, and business interruption. Public liability focuses on claims from third parties, rather than losses to your own property or disputes with employees.
In the UK, public liability cover is not generally required by law, but it is frequently required by clients, landlords, venues, local authorities, and procurement frameworks. The policy wording will normally define what counts as “business activities,” where you are covered (for example, your premises, customer sites, or off-site events), and who is included (such as the business owner, employees, or subcontractors if declared).
Business coverage: what public liability includes
Most public liability policies cover compensation and legal costs if a third party alleges your business caused bodily injury, illness, or death, or caused loss of or damage to their property. For example, a customer could slip on a wet floor in your shop, or you might accidentally damage a client’s flooring while installing equipment. Cover typically applies to accidents arising from negligence connected to your operations.
Policies often include legal defence costs in addition to (or sometimes within) the main limit, but the structure differs by insurer. The “limit of indemnity” is commonly offered in tiers (for example, £1 million, £2 million, £5 million, or £10 million). An excess (the amount you pay towards a claim) may apply, especially for property damage claims. Some policies also extend to temporary employees, work experience placements, or events-based work, but these details should be checked carefully.
Common exclusions and limitations matter as much as the inclusions. Public liability does not usually cover poor workmanship that needs redoing (that is typically a contractual issue rather than an “accident”), damage to items you are working on (often called “treatment risk” and sometimes covered only by extension), claims arising from professional advice (better aligned with professional indemnity), or injuries to employees (employers’ liability). Insurers may also restrict hazardous activities, work at height, heat work, or certain locations unless specifically declared.
Compare business insurance costs in the UK
Pricing for public liability cover is influenced by trade/industry risk, turnover, the size of contracts, claims history, chosen limit of indemnity, policy excess, and whether you need extensions such as product liability, tools cover, or cover for working away from your premises. As a broad real-world guide, low-risk sole traders may sometimes see quotes in the tens of pounds per month, while higher-risk trades, larger turnovers, or higher limits can cost significantly more.
| Product/Service | Provider | Cost Estimation |
|---|---|---|
| Public Liability Insurance | Aviva | Varies by trade and turnover; quotes are typically tailored |
| Public Liability Insurance | AXA UK | Varies; pricing depends on risk factors and selected limits |
| Public Liability Insurance | Hiscox | Varies; often quote-based for small businesses |
| Public Liability Insurance | Zurich | Varies; commonly tailored for SME risk profiles |
| Public Liability Insurance (brokered) | Simply Business | Varies; broker comparison across multiple insurers |
| Public Liability Insurance | Direct Line for Business | Varies; depends on business type and cover options |
Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.
After comparing estimated costs, it helps to compare the structure of business insurance rather than focusing only on price. Check whether legal expenses sit within the limit or in addition, whether property damage has a separate excess, and whether your work activities are fully described (for example, installation plus maintenance, or retail plus deliveries). If you supply goods, consider whether product liability is included or needs adding. For businesses working on customer property, look for clarity around “care, custody, and control” and any treatment-risk extensions.
A practical way to validate the fit is to map your real scenarios: visitors to your premises, work at client sites, subcontractor use, occasional overseas work, event stalls, and any higher-risk tasks. The right limit of indemnity is often determined by client requirements and the plausible scale of harm (for example, a busy public venue versus a low-footfall office). Even within the same sector, two businesses can need different cover depending on contract terms and where work is performed.
Public liability cover can be straightforward when it matches your operations and the policy wording is clear. For UK businesses, the main goal is to ensure the policy covers the third-party injury and property damage risks you actually face, with appropriate limits, extensions where needed, and well-understood exclusions so you can manage gaps through other policies or operational controls.
