Compare public liability insurance

No it isn't, but when you think about what could happen to your business if you had to pay out for a big claim against you, it can make financial sense. If you don't have public liability insurance, or a minimum level of cover, you may also find that some businesses and organisations won't work with you.

Here are some things to think about when comparing public liability insurance:

• Does your work involve dealing with the public?

• Do you have business premises the public can access?

• Are you covered for your specific business activities? You can get policies tailored to your industry.

• Do you have the right amount of cover? Some industry regulators, local authorities, and clients need a minimum level of cover.

• Does your policy have exclusions that affect you? If so, you may need additional or specialist cover.

• Do you employ people? Public liability insurance won’t cover you if they make a claim, and legally you must take out employers’ liability insurance.

With all this in mind, read the policy documents carefully to help you get the policy that’s right for you.

Yes, public liability insurance is tax deductible.

It’s counted as an ‘allowable expense’, so make sure you keep your insurance invoices, receipts, and other documentation safe for HMRC.

Yes, public liability insurance is a good idea for small businesses, as they can be vulnerable to the same risks as larger businesses.

You might think a small business is less likely to face compensation claims. But if it does happen, you could be more financially vulnerable. To avoid this, think about protecting yourself with small business public liability insurance.

Also, if you’re a smaller business that’s hoping to grow, larger organisations may need you to have a minimum level of public liability cover. They may not offer you a contract without it. So, by not having insurance, you could miss out on new business opportunities.

Public liability insurance covers you if a member of the public suffers injury or property damage resulting from your work.  

Employers’ liability insurance covers you if a member or staff makes a claim against you for injury or illness through work.    

Yes, public liability insurance covers your employees’ actions.

But it won't cover you if an employee makes a claim against you. That would be covered by employers’ liability insurance.

Whether you need public liability insurance depends on what type of business you run, rather than how many people work for you. If people visit your premises, or you go into customers' homes, then it can make sense to cover the potential risks. For example, if you’re a plumber or you run a shop. Not sure if you need it? Talk to an advisor from our trusted partner, Simply Business, on 0333 014 6683**.

**Lines are operated by our trusted partner, Simply Business. Open Mon-Fri 9am-6pm, Sat 9am-2pm.

Yes, third-party liability is just another way of describing public liability. It’s how insurance providers refer to people not involved in the insurance contract. 

You are the first party and the provider is the second party. The third party is someone who might make a claim on the contract if they were injured eg:  a customer, client, supplier or member of the public.  

No, professional indemnity policies typically cover you for legal and compensation costs if a client claims because of a financial loss resulting from your work. This can cover a variety of situations such as offering bad advice, making a mistake, breaches of confidentiality and copyright infringement.

You can get your public liability insurance certificate directly from your insurance provider. Once you take out cover, they’ll usually email it to you immediately. You may also be able to download the certificate via your account online.   

 Unlike employers’ liability, public liability insurance isn’t a legal requirement. So, you don’t have to display proof of cover if you don’t want to.