Public liability insurance for small business

An excess is the amount you pay towards any insurance claim you make. 

For example, if your excess is £100 and you make a claim worth £1000, your payout will be a maximum of £900. 

^{*Policy excesses vary per provider and there will be specific excesses applied to different covers within your policy. Therefore, it is always important to check with your broker to find out what excesses you will pay should you need to make a claim.} 

Not necessarily. Unlike employers’ liability and motor insurance, public liability cover isn’t a legal requirement and so many insurers won’t provide a certificate. Speak to your broker if you need evidence of your insurance.

Saying that, if a client or trade body asks for proof of cover, your broker can usually provide a document which includes your policy details. It's worth keeping your policy schedule somewhere easy to find in case this happens before you start any work. 

Public liability insurance only helps cover injury and property damage claims made by people who don't work for you, so the public not employees. It doesn't cover employee injury or illness, or damage to your own property. 

It also doesn't cover: 

• Claims coming from professional errors or bad advice (you’ll need professional indemnity insurance) 
• Damage to your own equipment or premises (you’ll need business contents or commercial property insurance) 
• Accidents involving your business vehicles (you'll need commercial motor insurance - at Bionic we don't offer this) 
• Deliberate acts — insurers won't pay out for damage or injury that’s done on purpose 

Yes. Public liability is tax-deductible as it is classed as a business cost that’s included in HMRC’s definition of allowable expenses. 

_{*Bionic Financial Services does not provide tax advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax advice. You should consult your own tax advisors for advice.} 

Public liability insurance covers you against damage claims made by members of the public, while employers' liability insurance covers you against injury claims made by your employees. Another difference is that public liability insurance isn’t a legal requirement, but employers’ liability insurance is required by law if you employ one or more people.

Even if you use freelancers, sub-contractors, or casual workers, or even interns or apprentices it's worth checking whether you need employers' liability cover as it can include more than just your typical ‘employee’. 

Without this cover, businesses may face substantial out-of-pocket expenses for legal fees or compensation claims. In some cases, it could also limit opportunities to work with certain clients, especially if you’re a tradesman. 

A single uninsured liability claim could cost your business. Operating without insurance and being ‘uninsured’ is a big risk.

Yes, some trade bodies and clients may require proof of public liability insurance before granting endorsements or contracts, giving your business a competitive edge.

Many local authorities, housing associations, and even other business clients might ask for proof of cover as part of your contract. Having the right level of cover in place — and being able to show it — could be the difference between winning and losing work. 

Yes, typically public liability is sold as part of wider insurance policy, including covers such as employers' liability product liability and more – but this depends on your own business needs. At Bionic, we only sell public liability as standalone cover for some business types like tradesmen. but as part of wider insurance protection. Speak to a member of our team today to find the right coverage for your needs. 

Your insurance policy may also include: 

• Employers' liability – If you employ anyone (even part-time or on a casual basis), this is a legal requirement. 
• Stock or contents - Provides cover for stock, including food & drink supplies, against theft or damage by fire or other insured events. 
• Product liability – If you make, sell, or supply physical products, this helps cover claims if a product causes injury or damage.  
• Professional indemnity – If your business gives professional advice or, this helps cover claims for financial loss caused by your error or negligence. 

Not sure if you need it? Ask yourself these questions to help guide your decision. 

• Could a customer or visitor trip, slip, or fall at your premises? 
• Do you handle, move, or work near other people's property? 
• Do clients or contracts ask for proof of insurance before you start work? 
• Do you work on government, local authority, or large commercial sites? 

Yes — in most cases, a standard public liability policy should cover you for work carried out at client sites, in public places, and at events in the UK, not just at your own premises. But always check your policy wording to check this - it may not include international travel. 

Yes, sole traders can get public liability insurance. It’s worth considering if you deal with clients in person, work on other people's property, or do business in public spaces. Many insurers offer policies designed specifically for self-employed people and sole traders - premiums could even be lower than costs for limited companies.

With Bionic, you can start a quote online at any time. Once you've spoken to one of our UK-based brokers and confirmed your details, cover can usually be arranged usually the same day you apply — so you're not left without protection while you wait.

When taking out insurance, it’s important you include cover to protect against the biggest risks to your business. Here are some other types of business insurance that could be useful to consider: 

• Business equipment insurance 
• Business interruption insurance 
• Commercial property insurance 
• Employers’ liability insurance 
• Legal expenses insurance 
• Product liability insurance 
• Professional indemnity insurance 
• Property maintenance insurance 
• Stock insurance 
• Tradesman insurance 
• Workshop insurance