22 July 2025
(5-minute read)
What is public liability insurance?
You never know when things might go wrong, allow the insurers to handle the matter on your behalf. Here’s our guide to public liability insurance cover, why it is important and how to secure it.
What is public liability insurance?
Public liability insurance, often referred to as PL insurance, is a type of insurance that protects you from injury and property damage claims made by third parties. For example, if a display tyre falls on a customer at your car parts shop and believes that it was your fault for not securing the tyre correctly, they may take legal action. If the injury results in a loss of earnings or permanent disability, the cost of the claim could be substantial.
What is the importance of public liability insurance?
Public liability insurance can provide vital cover, meaning you’re protected against unforeseen events. Allowing your business to operate confidently, financially plan and work towards long-term goals, knowing you are covered if any unexpected incident leads to a claim.
Public liability insurance ensures that you and your business have peace of mind from day one with:
✔ Financial protection – the cost of compensation payments awarded for third-party property damage or injury and legal fees are covered by your insurer.
✔ Legal defence – the legal costs of defending a claim made against your business will be covered by the insurance company, even if you are not found liable.
✔ A strengthened reputation – being covered shows your business is responsible and prepared for potential incidents with a proactive approach to risk management, which is important for building trust with clients. Having public liability insurance makes sure you aren’t prevented from being able to apply for certain business opportunities, as many clients, including local councils, may require you to have cover.
We know the last thing you want is unexpected costs. Public liability insurance is designed to cover your business’s specific risks, so you’re not left with potential financial burdens.
How to buy public liability insurance?
Firstly, you need to consider how much cover you need. This will vary depending on your business size, what it does, how often you deal with the public and what your existing or potential clients may require.
Get an online quote using the button below to find the right business insurance for your individual needs, or if you’re unsure as to exactly what you need, we are happy to offer further guidance and information, and give you a quote. You can call our insurance experts on 0333 070 6013.
If you are happy with the quote and wish to proceed, you can purchase your insurance online. Once this is done, you will receive your policy documents as proof of your cover instantly via email.
How much is public liability insurance?
The cost of public liability insurance is based on the nature of your business (the industry it is in and what it does on a day-to-day basis), the number of people you employ, your insurance claims’ history, and how much cover you require.
What types of businesses need public liability insurance?
- Do customers visit your business premises? For example, you have an amusement arcade.
- Do you visit customers’ properties to carry out work? For example, you’re a paint consultant carrying out work in people’s homes.
- Do you work in public areas? For example, you’re a tennis coach, and your work could potentially cause injury or damage to someone passing by.
If you answer ‘yes’ to any of these, your business should consider public liability insurance.
Which trades need public liability cover?
Tradespeople operating as sole traders or a limited company and those working onsite in public spaces, with clients on their premises, or carrying out work in a customer's home could benefit from public liability insurance.
For examples, trades with a heightened risk of causing injury and property damage to third parties include:
- Building trades – such as builders, plumbers, electricians, carpenters, painters, decorators, roofers, and scaffolders etc.
- Trades involving customer interaction – such as dog groomers, mechanics, and locksmiths.
- Trades working with equipment – such as those working in construction.
Please note: This article provides guidance for information purposes only. It should not be relied upon wholly when making or taking important business decisions – always seek the services of an appropriately qualified professional. Here at Ollo insurance, our advisors are on hand to assist you in discussing your insurance needs, or any of the information in this article.
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Michael LawrenceBroker Manager |
Frequently asked questions
Browse all FAQsPublic liability provides cover against claims for injury and property damage. For example, a visitor to your art gallery slips over when walking around.
Whereas professional indemnity insurance provides cover for claims brought against you for the work you produce and the professional advice you provide. For example, your negligence as a therapist could also lead to private information being lost or disclosed to others.
If a third party gets hurt or their property is damaged due to your business activities:
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Make sure to minimise any further risk – for example, remove any hazards and call for help.
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Contact your insurance company straight away – even if the third party hasn’t made a claim against you yet.
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Your insurer will review the incident – they will look at what happened and whether your public liability insurance can cover the incident.
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Your insurer will then advise you on your next steps.
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Written by Michael Lawrence