Public Liability Insurance for Tradespeople — What You Actually Need

Public liability insurance is one of those things most tradespeople have because someone told them they needed it — not because they fully understand what it covers or whether the level of cover is right for the work they do.

Here's what it actually does, how much you need, and what to watch out for in the small print.

What does public liability insurance cover?

Public liability (PL) insurance covers you if your work causes injury to a third party or damage to their property. The third party can be a customer, a member of the public, or anyone else affected by what you do.

Examples: You're a plumber and a joint you fitted fails overnight — the resulting flood damages a customer's floors, furniture and the ceiling of the flat below. PL covers the damage claim. You're an electrician and a faulty connection causes a fire. PL covers the claim. You leave tools on a path and a visitor trips and breaks their wrist. PL covers the personal injury claim.

What it doesn't cover: Your own tools or equipment — that's tools insurance Your vehicle — that's van insurance Injury to yourself — that's personal accident cover Defective workmanship that doesn't cause damage to anything else — that's professional indemnity Contractual liability in most cases — check the policy

How much cover do you need? £1 million used to be the standard minimum. Most policies now start at £1 million, £2 million or £5 million.

For sole traders doing domestic work, £1-2 million is usually sufficient. For commercial work, many main contractors and construction clients require a minimum of £5 million — and some specify £10 million. Check the contracts or purchase orders you're asked to sign.

The premium difference between £2 million and £5 million cover is usually small — often less than £50 a year. There's rarely a good reason not to go for higher cover.

Trade-specific considerations

Some trades carry higher inherent risk and need to check their policies carefully:

Gas engineers — must be Gas Safe registered, and some policies won't cover gas work without seeing the registration Electricians — NICEIC or NAPIT registration may be required for certain cover to apply Roofers — working at height is a higher risk category and some standard policies exclude it or charge a premium Demolition and structural work — often needs specialist cover

Read the policy schedule. The exclusions section is where the nasty surprises live.

Employers' liability — if you take on anyone

If you employ anyone — even a labourer paid cash for a day — you are legally required to have employers' liability insurance with at least £5 million of cover. This is not optional. Failure to have it is a criminal offence and carries fines of up to £2,500 per day.

This applies even to family members you employ. It applies to labour-only subcontractors in some circumstances. If you regularly work with other self-employed people and there's any ambiguity about whether they're subcontractors or workers, take advice.

What does it cost?

For a sole trader doing general trades work, public liability insurance typically costs £100–£400 per year depending on your trade, turnover and level of cover. Roofers, groundworkers and those doing structural work pay more.

Shop around through a broker who specialises in trades insurance — they'll know which insurers understand your specific trade and which policies have the most useful cover for how you work.

One thing worth doing

Read your policy before you need it, not after. Specifically:

What's the claims process? Do you need to notify the insurer immediately?

What are the exclusions?

Does cover apply when working at height? Underground? With gas? Is there a requirement to use certain materials or working methods?

A policy you don't understand is only slightly better than no policy at all if something goes wrong.

Dayrates keeps a record of your business details and lets you attach policy information to your profile — useful when a contractor asks for proof of insurance before you start on site.