What is public liability insurance?
Public liability insurance, sometimes referred to as general liability insurance, “PL” or “PLI”, is a type of business insurance. It protects you if a third party (such as a customer or a member of the public) makes a claim against you because they were accidentally injured, or their property was damaged in connection to your business activities.
With public liability insurance, you’ll be covered against the cost of any legal fees, the cost of compensation claims and the cost of repairing or replacing damaged property.
It’s not a legal requirement, but it can protect your business from unforeseen costs. Customers and local/public authorities (such as local councils, schools etc.) may also ask that you have it in place as part of a business agreement. They may ask you to supply a certificate of public liability insurance as proof of your coverage.
Most public liability policies cover you whether the injury or damage happened at your premises or off-site. If your business sells products, you may also need to consider product liability insurance.
What’s covered by public liability insurance in the UK?
What’s covered:
- Compensation Payments
Up to £10 million† cover for compensation payments relating to any damages, medical bills or lost earnings. - Legal Costs
Legal costs of up to £1 million for claims of accidental bodily injury, loss or damage to third party material property, or wrongful arrest in connection with the business. You’re also covered for any costs in connection with alleged breach of statutory duty under health and safety, consumer protection or food safety legislation as well as costs in connection with a criminal inquiry into manslaughter/corporate manslaughter, culpable homicide, or corporate homicide. You also have access to a 24-hour legal helpline**.
What’s not covered:
- Personal Injury
If you’re injured as part of your business activities or as a result of someone else, you are not covered under your public liability policy. Instead, you should consider health insurance to protect against this risk. - Employee Claims
If your employees are injured or become ill as a result of working for you, public liability won’t cover any compensation or legal fees associated with these claims. Instead, you need an employers' liability policy. - Your own property and equipment
If your own property is damaged as a result of your business activities, public liability won’t cover the cost of repair or replacement. Instead, you should consider tools and equipment cover.
Public Liability Insurance can cover you against otherwise costly claims. The best way to see the cover we can offer your business is to get a quote.
Get a public liability quoteHow much public liability insurance do I need?
How much coverage you need with your Public Liability Policy depends on what your business does. Cover starts at £1 million as standard and can be increased up to £10 million† cover.
When deciding how much public liability insurance your business needs, you should consider:
- The size of your business – Larger businesses present more risk and benefit from increased cover
- The type of business you have – consider the risks of your business activity. Low risk businesses may not need to invest in such high levels of cover
- Your claims history – If you have claimed frequently in the past, you may want to consider a higher level of cover
- Risk appetite – If you’ve generally got a lower risk appetite, a higher level of cover can offer peace of mind
- Online only businesses – online only businesses are much lower risk, you may benefit from a lower level of cover
- Contractual obligations – Review your business contracts. The mandatory cover level you require to meet those contractual obligations can be a great place to start
- Trade and industry body standards – as with contracts, your industry body may state a level of cover necessary to gain membership
- Industry averages – Other similar businesses may be able to offer a guide, but remember to consider your own unique risks before making any decisions.
How much does public liability insurance cost in the UK?
AXA customers pay prices from £5.29* a month or £64*** a year for public liability insurance. We know that everyone’s situation is different which is why you can decide how to pay for your policy – either annually or in monthly instalments.
It’s important to note that working out the cost of public liability cover for each policy depends on several factors.
What factors affect the cost of my cover?
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Your occupation can affect the cost of your insurance. Trades that use lots of equipment in their day-to-day operations or use dangerous machinery are considered a higher risk.
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Where you complete your work can affect your premium because businesses that are in areas with heavy footfall, or who interact more consistently with members of the public, are at higher risk of accidents occurring.
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How many staff members you have will affect your premium as more employees will open your business up to more possibilities of claims resulting in negligence or accidental injury.
Paying for public liability insurance
Everyone handles their finances differently. That’s why we offer a variety of ways for you to pay for your insurance. You can pay for your policy in a one-off lump sum when you’re ready to buy, or via direct debit in monthly instalments.
Still got questions about the cost of your policy? Find out more here.
Please note: To pay monthly you may have to meet specific eligibility criteria. For annual payments: 10% of our customers paid this or less between July and September 2024. For monthly payments 10% of our customers paid from £5.29 for ten months between July and September 2024 after an initial deposit. Interest applicable. For more details, see our terms & conditions.
Who needs public liability insurance?
Since public liability insurance protects you from third-party claims, almost every business needs this cover, especially those whose work involves contracts with public or local authorities. Here are just a few occupations that should consider public liability, and the kind of scenarios that could come up.
Builders
In case someone trips over one of your tools and gets hurt
Hairdressers
In case you accidentally cut someone when you’re trimming their hair
Gardeners
In case you’re digging up a garden and someone trips over the hole you’ve dug
Bakers
In case you make a custom cake for a party and the guests who eat your cake get ill
Cleaners
In case a spillage leads to a stain that ruins your customer’s couch
Dog Walkers
In case a dog in your care gets injured while you’re looking after it
Can’t see your occupation on the list above? No problem – have a look at our handy occupation A-Z guide to see what cover we can offer for your occupation.
What’s the difference between public liability and the other covers available?
There’s a host of business insurance products beyond public liability, and each one protects you slightly differently. Don't worry if you're struggling to understand the differences between these covers - we've got you covered with some quick comparisons below.
What's the difference between public liability and employers' liability?
The main difference between public liability and employers' liability is WHO is covered by these two types of insurance.
Public liability insurance covers claims from third parties, such as customers, clients, and the general public. It protects against accidental injury or property damage.
Employer's liability insurance protects anyone your business is responsible for, such as employees (part-time and full-time), volunteers and trainees. It protects employees who have been accidentally injured or fallen ill because of working for you.
What’s the difference between PL and product liability?
It’s important to note that product liability is part of your public liability insurance and not a standalone cover. Both cover you for accidental damage and injury.
Public liability insurance covers the work that you do or services that you provide– say, if someone is accidentally injured in your workplace from falling over a loose carpet or a laptop cable.
Public liability insurance covers you for single claims
Product liability covers physical products and things that you make, sell or supply. It protects you if someone who buys or uses your product gets accidentally injured. Need some more information? Head to our product liability page for a more in-depth look at this product.
Product liability claims are in aggregate
What's the difference between public liability and professional indemnity insurance?
The main difference between public liability and professional indemnity is the TYPE of situation you're covered for.
Public liability insurance covers you against accidental injuries caused to other people from your business/products as well as any damage caused to a third party's property.
Professional indemnity insurance covers you for the financial loss your client may have suffered because of your bad advice, poor services or inadequate designs that ended up resulting in financial loss for that client.
What other covers can I get to protect my business?
Contents insurance
Contents insurance is there to protect any important contents belonging to your business against theft, loss, or accidental damage. It also extends to cover fixtures and fittings in your premises and any stock you have.
Business Equipment
Business equipment insurance is an optional extra that you can add to your business insurance policy to cover the cost of replacing or repairing lost, stolen or accidentally damaged equipment.
Tools insurance
Tools insurance is an optional extra that has two levels. Own plant tools and equipment provides cover for any tools that you own against theft, accidental damage, or loss. Hired-in plant tools and equipment provide the same cover for any tools that you have hired to complete a job.
Legal expenses cover
Legal expenses cover is an optional extra that helps you access the expert legal counsel and advice that you might need to support you when a claim is made against you. As well as providing expert legal advice, it will help settle the cost of a dispute.
Frequently asked questions
Getting a public liability quote
With our straightforward quote process, it's easier than you think to get a quote online. We'll ask you for some details about your business and the type of work you do, and within minutes you'll have a quote built around your insurance needs.
Take a look at this handy checklist and get prepared.
Your business name and address
How many employees you have
(both full-time and part-time staff or any other workers in your care)
How long you've been in business
Contact information
Details of any previous claims you've filed
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*10% of our customers paid from £5.29 for ten months between July and September 2024 after an initial deposit. Interest applicable. For more details see our terms & conditions.
**The guidance is provided on behalf of AXA by Arc Legal Assistance Ltd who are authorised and regulated by the Financial Conduct Authority.
***10% of our customers paid this or less between July and September.
† Not all occupations are eligible for £10 million coverage, the best way to find out which level of cover you are eligible for is to get a quote. Existing customers may want to consult their policy documents.