What is Public Liability Insurance?

Public liability insurance is a type of business insurance that helps protect you if your work causes injury to someone else or damage to property you don’t own. In plain terms: if a client, a visitor, or a passer-by says, “That happened because of you,” public liability is the policy that usually steps in to handle the costs.

It typically covers two big things:

1. Compensation (what you may be legally liable to pay)
2. Legal defence costs (solicitors, court costs, negotiations), which can rack up even if you’ve done nothing wrong

And yes, this is why contractors and freelancers pay attention to it. Most of us aren’t worried about being reckless. We’re worried about the normal, human stuff: accidents, misunderstandings, and those awkward “who’s paying for that?” moments.

What does public liability insurance cover?

Public liability insurance generally covers claims made by third parties for incidents that occur in connection with your business activities.

That usually means:

Third-party injury

If someone is injured and it’s alleged your work caused it, public liability can help with legal costs and compensation.

Examples that pop up in real life:

• A client trips over your laptop cable during a meeting
• Someone slips on a wet patch near where you’ve been working
• A visitor is hurt by equipment you’ve brought on-site

Third-party property damage

This is the other big one. If you accidentally damage a client’s property (or anyone else’s), public liability can cover the cost of the claim.

Think:

• A coffee spill on a client’s carpet
• Knocking a monitor off a desk while setting up kit
• Accidentally cracking a tile or scratching a floor

These aren’t “headline” incidents. But they can still cost thousands once repair, replacement, and legal responsibility are argued.

Legal defence costs

Even if a claim is unfair, defending it can be expensive. Public liability policies often include legal costs as part of the cover.

Who counts as “the public”?

In insurance language, “the public” usually means people who are not employed by you (and not working as your employees). It can include clients, customers, visitors, and members of the public who are affected by your work.

If someone working for you is injured, that’s normally employers’ liability territory and unlike public liability, employers’ liability is the one that’s commonly a legal requirement when you employ staff.

Is public liability insurance legally required in the UK?

Usually, no it’s not generally mandatory under UK law.

But here’s the twist: it can be “not required” and still feel required.

Clients, recruitment agencies, trade bodies, and local authorities often insist on it before they’ll let you start. So, for a lot of contractors, public liability isn’t a debate. It’s a checkbox you need ticked to get on site, get onboarded, or get through procurement.

How much cover do you need?

Public liability policies usually come with a limit of indemnity, the maximum the insurer will pay for a claim (or for claims during a period, depending on wording).

Common UK limits are £1m, £2m, £5m, and £10m. As a rule of thumb, many contractors start around £2m-£5m and adjust depending on client requirements and risk level.

It’s worth being realistic here. If you’re working in a high footfall environment (offices, venues, public sector sites), a higher limit can stop you being caught short.

What public liability insurance doesn’t cover

Public liability insurance isn’t a “covers everything” policy. Common gaps include:

• Professional mistakes / negligence (usually handled by professional indemnity insurance)
• Poor workmanship (often excluded — damaging something is different from doing a job badly)
• Employee injuries (typically employers’ liability instead)

That’s why many contractors carry public liability alongside professional indemnity. One covers accidents; the other covers advice and services.

A quick note on how Roots fits (without the sales pitch)

Roots already frames public liability limits and what clients commonly expect (like £1m or £2m minimums, with £5m/£10m being common in contracting). That’s the kind of practical detail contractors actually need when they’re trying to get a contract over the line.