Compare Self Employed Public Liabilty Insurance

Most sole traders and self-employed business owners do not have to hold public liability insurance by law, but if your work involves contact with people or their property you should strongly consider it.

When you’re operating as a sole trader or working for yourself, you carry both the business and personal risk in one package. Without a limited company to act as a buffer, you can be held personally liable for compensation or legal costs if a third-party injury or property damage occurs because of your work.

Although public liability cover isn’t legally required, it becomes practically essential when your work involves:

• interacting with the public
• visiting clients’ homes or business premises
• working at events or on site

For example, if you’re a sole-trader decorator and a client trips over your ladder in their home, or you’re a dog-walker and someone’s pet is injured under your supervision, the claim could hit you personally. You’d face legal defence costs, compensation payouts, and disruption to your business. Without insurance, you would have to pay these out of your own pocket.

Even if you’re not legally required to hold cover, many clients, local authorities, or event organisers will ask for proof of public liability insurance as a condition of hiring. Not having it can limit your opportunities for work.

In short, if your self-employed or sole trader business involves being on site, working around people, or visiting client premises, public liability insurance is a smart protective measure for your livelihood rather than simply an optional extra.

Public liability insurance covers a lot, but it doesn’t protect against every type of business risk. Understanding what isn’t included helps you avoid unexpected gaps in cover.

This type of policy focuses solely on third-party injury and property damage. Anything outside of that scope, such as harm to yourself, your employees, or your own business property, will typically fall under different insurance products. Knowing these limits ensures you don’t assume protection where none exists.

A standard public liability policy will not usually cover:

• Damage to your own property or tools: You’ll need a separate tools or equipment policy for that.
• Injury to yourself or your staff: Employers’ liability insurance is required if you have employees or labour-only subcontractors.
• Professional mistakes or advice: These are covered under professional indemnity insurance.
• Faulty workmanship: While public liability may cover the resulting damage, it won’t pay to redo poor work itself.
• Deliberate acts or illegal activities: Any claim involving intentional damage or unlawful conduct will be excluded.

For example, if you’re a self-employed builder and a customer claims you damaged their garden wall, that’s likely covered. But if you damage your own tools in the process, that wouldn’t be.

Before buying a policy, always read the insurer’s terms carefully. Some exclusions vary by trade or policy type, and understanding them upfront helps you choose the right combination of cover for your work.

You can reduce the cost of public liability insurance by comparing quotes, choosing an appropriate level of cover, and showing insurers that you manage risk responsibly.

Insurance premiums are based on how likely you are to make a claim and how costly that claim might be. The more you can demonstrate control and professionalism, the lower your perceived risk becomes. For self-employed people and sole traders, this can make a noticeable difference to annual costs.

Here are several practical ways to keep your premiums affordable:

• Compare multiple quotes: Prices vary between insurers, even for identical cover, so always shop around.
• Avoid unnecessary extras: Only select additional cover such as tools or equipment if you truly need it.
• Pay annually rather than monthly: Many insurers offer small discounts for paying your premium in one go. Paying annually at £100 a year instead of £10 monthly can save around £20 in interest or admin fees.
• Maintain a clean claims history: Fewer or no claims often lead to lower renewal prices.
• Work safely: Having proper health and safety procedures, risk assessments, and training can help demonstrate responsibility.
• Check your cover limits: Don’t over-insure. A £1 million policy might be sufficient for many sole traders who don’t work on large commercial sites.

For instance, a self-employed gardener who follows safety protocols and maintains a no-claims record will usually pay less than a tradesperson with several previous incidents. Insurers reward reliability, and even small improvements in how you operate can lead to long-term savings.