Do You Need Public Liability Insurance? A Trades Guide

One slip on a customer's stairs, one dropped tool through a conservatory roof, one cut cable that floods a kitchen — and suddenly you are staring at a bill that could close your business. Most trade work goes off without a hitch, but it only takes a single bad day. Public liability insurance is the cover that stops one accident from wiping you out.

This guide explains what public liability insurance actually does, who really needs it, roughly what it costs, and where it fits alongside the other cover you might carry.

What Is Public Liability Insurance?

Public liability insurance protects you if your work causes injury to a member of the public or damage to their property, and they make a claim against you.

In practical terms, it covers things like:

• A customer or passer-by tripping over your tools or cables and getting hurt
• Accidental damage to a client's home — a burst pipe, a cracked tile, a scorched worktop
• Damage to a neighbouring property while you are on site
• Legal costs and compensation if you are found liable

It does not cover your own tools, your own injuries, or faults in the actual work you carry out. Those need different policies, which we cover further down.

Cover is usually sold in set limits — commonly £1 million, £2 million or £5 million. The right limit depends on where you work and who you work for.

Do Tradespeople Legally Have to Have It?

Here is the part that surprises a lot of people: public liability insurance is not a legal requirement for most self-employed tradespeople. You can legally trade without it.

But "not legally required" is a long way from "safe to skip". In reality you will struggle to work without it, because:

• Main contractors and commercial sites almost always demand proof of cover before you set foot on site, often at £5 million.
• Letting agents, landlords and housing associations usually insist on it.
• Trade accreditation schemes and directories frequently require it as a condition of membership.
• Domestic customers increasingly ask "are you insured?" before they hand over the keys.

So while no law forces you to buy it, the market effectively does. Without it, you are shut out of a large slice of available work.

As a rough guide, ask any client who their other tradespeople are insured with, or check what your local competitors advertise — it tells you the level of cover customers in your area expect to see.

One thing that is a legal requirement: employers' liability insurance. If you employ anyone — even casually, even a labourer for the day — you are legally required to hold it, with cover of at least £5 million in most cases. Always check the current official rules with the Health and Safety Executive, as the detail and exemptions can change.

How Much Does Public Liability Insurance Cost?

Costs vary widely, so treat any figure as a rough guide rather than a quote. As a rough steer, a sole-trader tradesperson might pay anywhere from around £60 to £300 a year for £1 million to £5 million of cover, with higher-risk trades paying more.

The price is driven by:

• Your trade and its risk profile — working at height or with gas tends to cost more than first-fix joinery.
• The level of cover you choose (£1m vs £5m).
• Your turnover and whether you employ staff.
• Claims history and how long you have been trading.
• Add-ons bundled in, such as tool cover or professional indemnity.

For some trades the risk is high enough that insurance deserves its own detailed treatment — tree surgeons are a good example, and we cover that in tree surgeon insurance: what cover you actually need.

What Other Cover Might You Need?

Public liability is rarely the whole picture. Depending on your trade and how you work, you may also want:

• Employers' liability — legally required the moment you employ anyone.
• Tools and equipment cover — for theft from the van or damage to your kit.
• Professional indemnity — for claims that your advice, design or specification was wrong (useful for anyone who designs, certifies or specifies work).
• Product liability — if you supply or fit goods that later cause harm.
• Contract works ("all risks") — protects ongoing work and materials before handover.
• Personal accident / income protection — covers you if an injury stops you working.

A common mistake is assuming public liability covers faulty workmanship. It usually does not. If you fit a boiler badly and it fails, that is generally a workmanship issue, not a public liability claim — which is exactly why getting the work, paperwork and certification right matters as much as the insurance.

How to Reduce Your Risk in the First Place

Insurance is your safety net, but the cheapest claim is the one that never happens. Sensible risk management also keeps your premiums down over time.

• Do proper risk assessments and method statements for higher-risk jobs.
• Keep the site tidy — trailing leads and stray offcuts cause most public injuries.
• Photograph the property before and after, so a pre-existing crack does not become your problem.
• Keep clear records of what you were asked to do, what you quoted and what you did.

That last point is where good admin pays for itself. When a customer disputes a job, the difference between an awkward conversation and a formal claim is often whether you can produce a clear quote, signed acceptance and dated job notes. A job-management system like Gaffer keeps your quotes, photos, certificates and customer messages together against each job, so if a question ever arises months later, the evidence is one tap away rather than buried in WhatsApp. Tidy records also feed into broader health and safety for small trade businesses, which insurers like to see.

Choosing the Right Policy

When you are comparing quotes, look past the headline price:

1. Check the cover limit matches the work you chase — £1m may be fine for small domestic jobs, but commercial sites often demand £5m.
2. Read the exclusions — some policies exclude work at height, hot works or specific tasks your trade relies on.
3. Confirm whether legal costs are included within the limit or on top of it.
4. Match it to your real turnover — under-declaring to save money can void a claim.
5. Buy through a broker who knows trades if your situation is at all unusual.

Tell the insurer the truth about what you do. A cheap policy that does not pay out when you need it is the most expensive mistake of all.

FAQs

Is public liability insurance a legal requirement for tradespeople?

For most self-employed tradespeople, no — it is not legally required. However, employers' liability insurance is a legal requirement if you employ anyone, and many sites, agents and accreditation schemes will not let you work without public liability cover.

How much public liability cover do I need?

It depends on where you work. As a rough guide, £1 million to £2 million often suits domestic work, while commercial sites and main contractors commonly require £5 million. Check what your typical clients ask for before you buy.

Does public liability insurance cover faulty workmanship?

Usually not. Public liability covers injury or property damage caused by your work, not the cost of putting right work that was done incorrectly. Faulty workmanship is normally a separate issue, and some risks are covered by professional indemnity instead.

How much does public liability insurance cost for a sole trader?

It varies by trade, turnover and cover level, but as a rough guide many sole traders pay somewhere between around £60 and £300 a year. Higher-risk trades and larger turnovers cost more, so always get a tailored quote.