Public liability insurance

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Public liability (PL) insurance is one of the most common covers for UK businesses. It is designed to pay compensation and legal costs if someone who is not your employee — a customer, passer-by, supplier or visitor — is injured or their property is damaged because of your business activities.

PL is not a legal requirement for every business, but many landlords, local authorities, main contractors and trade associations insist on it. Without it, a single serious injury claim could cost tens or hundreds of thousands of pounds.

What it typically covers

Policies vary by insurer, but PL usually responds when your business is legally liable for:

• Bodily injury — for example a customer slipping on a wet floor in your salon or pub, or a visitor tripping over tools left in a walkway
• Property damage — such as a plumber flooding a client’s kitchen, or a scaffolder’s equipment damaging a parked car
• Legal defence costs — solicitors’ fees and court costs while the insurer investigates and, if appropriate, defends or settles the claim

Cover applies to incidents connected with your business — at your premises, at a client’s site, at events you organise, or while carrying out work in public areas. The policy schedule states the territorial limits (usually Great Britain, and sometimes extended to the EU for temporary work).

What it usually does not cover

Always read your policy wording. Common exclusions or limitations include:

• Injuries to your own employees — these fall under employers liability insurance
• Damage to your own property or stock — normally covered by commercial property or contents insurance
• Professional mistakes that cause financial loss rather than physical injury — see professional indemnity insurance
• Deliberate wrongdoing, fines and penalties
• Work carried out in the USA or Canada unless specifically agreed

Typical limits and excesses

Many small businesses hold between £1 million and £5 million of PL cover. Higher limits are common where contracts require them — for example £10 million for work on airports, large venues or public-sector sites. Your policy excess is the amount you pay towards each claim before the insurer pays the rest; PL excesses are often £250 to £1,000 but can be higher for certain trades.

Who needs public liability cover?

Any business that interacts with the public should consider PL. Examples across our specialist brands include:

• Pubs and bars — slips and trips, glass injuries, food-related illness claims from customers
• Salons and beauty therapists — reactions to products, burns from equipment, trips in treatment areas
• Tradespeople — damage at domestic or commercial sites, injury from falling objects or tools
• Medical and allied health practices — visitor injuries in waiting areas (malpractice to patients is a separate cover)
• Airside and aviation operators — third-party injury or damage in operational areas, often with contractually high limits

PL and products liability

Many commercial packages combine public liability with products liability — cover if something you sell, supply or install causes injury or damage. A pub selling food, a salon retailing beauty products, or a trade business fitting goods may need this extension. Check whether it is included or optional on your quote.

How claims work in practice

If someone alleges they were hurt or their property was damaged because of your business, notify your broker or insurer promptly. Do not admit fault to the claimant — provide factual details and let the insurer handle liability. See our guide on making a business insurance claim for the full process.

Arranging cover through BIS-Nationwide

We place PL as part of tailored packages on Salon Insurance 4u, Tradesman Insurance 4u, Pub Insurance 4u, MMI 4u and Airside Insurance 4u. Limits, excesses and exclusions vary by insurer and trade — always read your policy wording and schedule.

Contact us if you would like help finding the right site for your business, or browse our insurance resources for more guides.