What is Public Liability Insurance? Guide & Costs

Protecting your business shouldn’t be complicated. Whether you’re a sole trader, freelancer or limited company, this guide breaks down exactly what public liability insurance is, what it covers, how much it costs and how to choose the right cover for your business.

We’ll keep things practical, jargon-free, and focused on what really matters to you: safeguarding your business from the unexpected.

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What is Public Liability Insurance?

Public liability insurance protects your business if a member of the public (clients, customers, suppliers or passers-by) is injured or their property is damaged because of your business activities.

Whether you work from home, visit clients, run a shop, or carry out work on-site, this type of insurance is designed to cover the legal costs and compensation if someone makes a claim against you.

Definition and Purpose

Public liability insurance covers the cost of claims made by third parties for bodily injury or property damage caused by your business.

In plain English: if someone trips over your equipment, slips on a wet floor in your premises, or you accidentally damage a client’s property, public liability insurance helps with the cost of putting things right, including compensation and legal fees.

It's not just for bricks-and-mortar businesses either. If you work remotely, visit clients, attend events or hire public spaces (like halls or venues), you could still be at risk.

Why Businesses Need It

Accidents happen. And even if you’re careful, the cost of a claim can be significant.

• A tradesperson drilling through a water pipe
• A fitness instructor whose client trips during a session
• A freelancer whose laptop bag causes someone to fall in a co-working space

Without insurance, you could be personally responsible for paying compensation, solicitor fees, and court costs. That’s why public liability insurance is one of the most common types of business cover in the UK and often a requirement for client contracts or venue hire.

What Does Public Liability Insurance Cover?

Here’s what you’re protected against when you take out a public liability policy with Admiral Business:

Injuries to Clients or the Public

If a member of the public is injured due to your business activities, this cover can help pay compensation and medical costs.

Examples:

• A customer slips on a wet floor in your café.
• A child trips over your toolkit at a client’s home.
• A visitor is hurt during a product demonstration.

Admiral Business public liability insurance will help cover the cost of legal defence and compensation if you’re found liable.

Damage to Property

Your policy also covers accidental damage to third-party property caused by your work.

Examples:

• A decorator spills paint on a customer’s carpet.
• A photographer knocks over an expensive vase during a shoot.
• A contractor breaks a client's equipment on-site

We’ll pay for the repair or replacement of damaged property if a claim is made against you.

How Much is Public Liability Insurance?

Factors That Affect Cost

There’s no one-size-fits-all answer. The cost of public liability insurance depends on:

• Your trade or profession – Riskier industries typically pay more.
• Business size – More employees or turnover can mean a higher premium.
• Level of cover chosen – Most policies start at £1 million, but you can choose higher limits up to £10 million.
• Claims history – A clean record may reduce your premium.

Typical Price Ranges

At Admiral Business, public liability insurance starts from around £6.07 a month* for lower-risk professions. For more complex businesses, it may cost more.

We’ll provide a tailored quote based on the exact nature of your business and we’ll never ask you to pay for cover you don’t need.

Get an online quote today to see how much you could pay.

*£6.07 is the price for a Public Liability policy for a single carpenter with £1,000,000 worth of cover. It is the equivalent of £72.80 per year when paying for the policy in one annual payment. Your quote will be personalised to your requirements and will reflect the risks you need to be covered against. The price is correct as of 28th April 2025.

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How Much Does Public Liability Insurance Cost for Small Businesses?

We understand that every business is different, so let’s break this down by business type.

Sole Traders

If you’re a sole trader (from tradespeople to yoga instructors) your business may be smaller, but the risks are still real.

You might pay less than a limited company, but you'll still need protection if your work puts you in contact with the public.

Example:

• A mobile dog groomer visiting clients' homes
• A personal trainer renting a space in a local hall
• A freelance IT technician working on client sites

For most sole traders, cover is affordable and flexible, giving you peace of mind without breaking the bank.

Limited Companies

If you run a limited company, especially with staff or multiple clients, your exposure to risks is often higher.

You may also need to provide proof of cover to secure larger contracts or to work on-site with clients.

Your premium may be higher depending on your operations, but it’s a small price to pay to avoid a potentially costly claim.

How to Get Public Liability Insurance

Getting cover with Admiral Business is quick, simple and online.

Getting a quote with Admiral Business

We’ve made the quote process fast and hassle-free:

1. Answer a few simple questions about your business
2. Choose your level of cover – most customers start with £1 million, but we also offer £2m, £5m or £10m
3. Choose your add-ons from Tools & Materials, Employers Liability, Legal Expenses, etc.
4. Get your quote instantly

What to Look for in a Policy

Not all policies are created equal. When choosing public liability insurance, it's recommended that it:

• Covers the types of risks your business faces
• Includes legal defence costs
• Has flexible cover limits (from £1m to £10m)
• Offers clear terms with no unnecessary jargon

At Admiral Business, we aim to make policies that are clear, accessible and tailored to your business needs.

Adding Extra Protection if Needed

Depending on your line of work, you may also want to add:

• Employers’ Liability Insurance – required by law if you have employees
• Professional Indemnity Insurance – for those offering advice, design or consultancy
• Tools & Materials Cover – great for tradespeople or mobile workers
• Legal Expenses Cover – extra peace of mind in case of disputes

Our policies are flexible, so you can customise your protection in one simple quote.

Do You Need Public Liability Insurance?

Legal Requirements

Public liability insurance isn’t a legal requirement in the UK. However, it’s essential for many businesses that work with the public.

There’s one exception: if you employ staff, employers’ liability insurance is a legal requirement, even if you only hire one person.

When Clients or Contracts Demand It

Many clients, especially larger organisations or local authorities, will ask for proof of public liability insurance before signing a contract.

It’s also often required when:

• Hiring public venues or market stalls
• Applying for industry accreditations
• Working in shared spaces or co-working environment

Final Thoughts: Protecting Your Business with Public Liability Insurance

No matter how careful you are, accidents and mistakes can still happen. Public liability insurance protects your business and your reputation from the unexpected.

It’s one of the simplest ways to reduce financial risk, win more work, and give your clients extra confidence in your services.

At Admiral Business, we offer public liability insurance that’s:

• Tailored to your profession
• Backed by a trusted UK insurer
• Flexible, affordable and clear

Get started

Get a free, no-obligation quote with Admiral Business today and find the cover that fits your business.