Who needs Public Liability Insurance?

Do I Need Public Liability Insurance?

If your business comes into contact with members of the public, it’s likely you’ll decide you need public liability insurance. It’s an insurance that’s particularly popular with shops, tradesmen and salons, because it can cover the cost of compensation claims made against you for injury, or for damage to someone’s property.

You may need Public Liability insurance protection if you come into contact with third parties in one or more of these ways:

  • Customers visit your business premises, for example you have a shop, pub or a restaurant or hairdressing/beauty salon.
  • You work on client sites, for example you’re a tradesman carrying out work in people’s homes or gardens.
  • You work in public areas, for example you’re a builder, and your work could potentially cause injury or damage to someone passing by.

Is Public Liability a legal requirement?

Public Liability insurance is not a requirement by law, but many clients will insist that you’re covered for public liability before allowing you to begin work.

Some trade associations will not allow you to register with them unless you have a valid liability policy.

Local government or council contracts will usually ask you to provide proof of public liability insurance with a certain level of cover before they will do business with you.

What trades need liability insurance?

If your business comes into contact with members of the public or customers. Or if there is potential that your could cause damage to property then you may need Public Liability insurance.

Types of businesses that would typically have tradesman insurance include:

  • Builders
  • Electricians
  • Carpenters
  • Gardeners
  • Painters and decorators
  • Plumbers
  • Sign writers

This is not an exhaustive list as many businesses can require liability insurance.

What does Public Liability insurance cover?

When accidents happen, your business could be responsible for paying compensation under many circumstances. Public Liability insurance can cover the cost of pay-outs and legal fees if your business is sued by a third party (third parties include members of the public, customers or clients, but not your staff).

Public Liability insurance can cover an accident in your work area or relating to your business activities. This includes incidents on your premises as well as those that occur while doing business offsite.

What kinds of claims can Public Liability insurance provide cover for?

Public Liability insurance can cover compensation claims made against you for injury or property damage to third parties such as your customers, suppliers or any other member of the public who comes into contact with your business.

See more examples of Public Liability insurance claims

How much Public Liability cover do I need?

All businesses are different, so the amount of cover needed will depend on many different factors including the extent of contact you have with the public, the types of clients you work with and the size of your projects.

Read more about how much Public Liability cover do I need

To summarise, here are some points you should consider when you’re deciding whether your business needs Public Liability insurance:

  • Do you or your business come into contact with customers or members of the public?
  • Could your business cause injury to someone or damage to their property?
  • Do your client contracts ask for you to have certain levels of public liability cover?
  • Are you associated with any professional or trade bodies that require their members to hold public liability insurance?
  • Could a public liability policy help reassure your customers that you’re covered if anything goes wrong?
  • Could you afford to pay legal fees and any compensation costs in the event a claim is made against you or your business?

Find out more about Public Liability insurance

How can Lloyds Bank Business Insurance Services help you protect your business?

We know your business is important to you, and keeping it safe and secure will allow you to focus on the important day to day tasks.

To help you do this we have chosen to work with Arthur J. Gallagher Insurance Brokers Limited, one of the UK’s largest insurance brokers.

This service will provide you with access to specialist insurance advisors who will search a panel of leading insurers offering a range of products. To get you the cover you need at the price you want.

Public Liability for Tradesmen & Self Employed

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Lloyds Bank is a trading name of Lloyds Bank plc, Bank of Scotland plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no.2065. Bank of Scotland plc. Registered Office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland no. SC327000. Lloyds Bank Corporate Markets plc. Registered office 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 10399850. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278, 169628 and 763256 respectively.

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Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS). Please note that due to FSCS and FOS eligibility criteria not all business customers will be covered.