Liability insurance

Public liability insurance

If members of the public or customers come to your premises or you go to theirs (including if you work from home), you should think about taking out public liability (PL) insurance.

What the insurance covers

PL insurance covers any awards of damages given to a member of the public because of an injury or damage to their property caused by you or your business. It also covers any related legal fees, costs and expenses as well as costs of hospital treatment (including ambulance costs) that the NHS may claim from you. Read about the Injury Costs Recovery Scheme on the Department of Health (DoH) website - Opens in a new window.

Premiums are based on the type of business and rated on an estimate for the level of activity of the business. For most businesses this will be the turnover, although other factors may be used. For example, premiums for a hotel might be calculated on the number of beds provided to reflect the number of guests.

Talk to a professional

There are many conditions, exclusions and warranties that can be applied to PL policies. It is therefore important that you discuss your policy with your insurance adviser to ensure that it meets your needs. Find a broker on the British Insurance Brokers' Association (BIBA) website - Opens in a new window or compare insurance quotes on the Simply Business Insurance website - Opens in a new window.

If you choose to deal directly with an insurer, it's worthwhile checking that they are a member of the Association of British Insurers (ABI). Check that an insurer is a member of the ABI at the ABI website - Opens in a new window.

Businesses which must take out the insurance

Generally speaking, PL insurance is not compulsory; however, horse riding establishments are required to have PL cover. You will also find that many of your customers or potential customers require proof of adequate insurance before they will allow you to work for them.

Subjects covered in this guide

• Introduction
• How liability insurance works
• Employers' liability insurance
• Public liability insurance
• Product liability insurance
• Insurance against pollution damages
• Property owners' liability insurance
• Professional indemnity insurance
• Directors' and officers' liability
• Seek specialist advice
• Here's how I checked what insurance I need

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