Public Liability Insurance for Trades: How Much?

Public Liability Insurance for Tradespeople: How Much Cover?

Public liability insurance covers you if your work injures someone or damages their property, and for most UK trades the sensible level of cover is £1 million, £2 million, or £5 million depending on who you work for. It is not usually required by law, but working without it is a serious gamble — a single claim for damage to a customer’s home can dwarf anything you would ever pay in premiums. Many contracts, councils, and larger clients will not let you on site without it. This guide explains what it covers, how to pick a cover level, and what drives the cost.

What public liability insurance covers

Public liability covers claims made against you by third parties — your customers or members of the public — for injury or property damage arising from your work. If you knock through a pipe and flood a kitchen, drop a tool from scaffolding, or a customer trips over your gear and is hurt, this is the cover that pays the compensation and legal costs. It protects the people around your work, and it protects you from a bill that could otherwise end your business.

It does not cover injury to your own employees — that is employers’ liability, which is a separate and legally required cover if you have staff. Nor does it cover faulty workmanship itself or advice you have given; those fall under other covers.

How much cover do you need?

Cover levels are usually offered at £1 million, £2 million, £5 million, and sometimes £10 million. The right level depends less on the size of your jobs and more on who you work for.

For general domestic work, £1 million is often the baseline, though £2 million is increasingly treated as standard. If you do any commercial work, subcontract to larger firms, or work on public-sector or council contracts, you will frequently be required to hold £5 million or more — many contracts specify a minimum, and you simply cannot take the work without it. Because the jump in premium between cover levels is usually small relative to the extra protection, it often makes sense to carry more rather than less.

The practical rule: check what your customers and contracts demand, then hold at least that. If you are chasing commercial or public work, £5 million opens more doors than £1 million.

What it costs, and what drives the price

Premiums vary widely, so treat any figure as a starting point rather than a quote. What pushes the cost up or down includes your trade and its risk level, the cover amount you choose, your turnover, your claims history, and whether you work at height or with higher-risk activities. A decorator will usually pay less than a roofer for the same cover level, because the risk profile is different.

The cost is modest against what it protects. Weighed against the potential bill from a serious property-damage or injury claim, public liability is one of the cheaper forms of peace of mind a trade can buy.

Is it legally required?

Public liability itself is generally not required by law for most trades. But two things make it effectively essential. First, employers’ liability insurance is legally required the moment you have employees, with significant penalties for not holding it. Second, most contracts, agencies, councils, and larger clients require public liability as a condition of working with them, and many customers now expect a trade to be insured before they let them in the door. So while the law may not force it, your work and your customers usually will.

Bundling with tools and van cover

Many trades buy public liability as part of a broader tradesperson policy that can include tools, van, and other covers. Bundling can be convenient and sometimes cheaper, but check the detail — cover limits and exclusions on tools and van vary a lot, and the cheapest bundle is not always the one that pays out when you need it.

Frequently asked questions

Is public liability insurance a legal requirement for trades? Usually not by law, but employers’ liability is legally required if you have staff, and most contracts and customers require public liability before you can work for them.

How much public liability cover do I need? £1m–£2m is common for domestic work; £5m or more is often required for commercial, subcontract, or public-sector jobs. Hold at least what your contracts specify.

How much does public liability insurance cost for a tradesman? It varies by trade, cover level, turnover, and claims history, so get a quote. Higher-risk trades pay more, but the cost is small against the claims it protects you from.

Does public liability cover my tools? No. Tools cover is separate, though it is often sold alongside public liability in a tradesperson policy. Check the limits and exclusions.

Does it cover injury to my workers? No. Injury to employees is covered by employers’ liability insurance, which is legally required if you have staff.

Related reading: do you legally need public liability insurance? · employers' liability insurance · contract works insurance · van insurance for tradesmen