Who Needs Public Liability

Most businesses understand that they need to protect themselves from any potential compensation claims. After all, almost every business will have some degree of contact with members of the public via customers and suppliers, meaning that they are exposed to a degree of risk.

Public liability insurance isn’t a legal requirement but it’s recommended as it provides important cover for many businesses. It covers your business financially if you are sued for injury or damage, at your business premises, at a customer’s home or even if you are conducting business out in the public.

You should consider all of the different risks and scenarios that your business may face when deciding if you need public liability insurance. You might need public liability insurance for any number of reasons.

  • A client visits your salon and you burn them with hair straighteners. 
  • You work as a builder and accidentally damage a client’s property.
  • Your hired as an entertainer and spill a drink over a client’s sound system.

A public liability insurance policy can be taken out by individuals, self­-employed workers and small businesses that wish to reduce the financial risk of paying out for any accidents and damages that they may be liable for.

Individual / Sole Traders

When you are trading by yourself it can be very daunting. The future of your business is completely in your hands but one false move could leave you in financial turmoil. If you were to injure a member of the public, you would need to call upon your public liability insurance policy for individuals to help you out with compensation costs.

Business Partnerships

A business partnership is a formed agreement between two or more individuals to run a business as co-owners. If your business is owned two or more individuals then it is recommended you have public liability insurance for a partnership in place to provide protection for your business against liability claims against you or your business.


When you are a freelancer and earn your living through your own business, you are considered as self-employed. As you are working under your own guidance, it means if anything goes wrong, it could well fall back on you for rectification or compensation. This is when public liability insurance for self-employed is recommended.

Small Businesses

The definition of a small business does differ from industry to industry and also the turnover of the business in question can decide what category they fall into but, in a majority of cases, a small business is a company consisting of 1 to 50 employees. Public liability insurance for small businesses will offer that vital help and assistance when the unexpected happens, for which a small business could be liable for.

Limited Companies

A Limited Company is a private company whose owners are legally responsible for its debts up to the amount of capital that they invested. A limited company can consist of a single person or multiple individuals who will all need cover for the day-to-day risks they are exposed to. Whether you are part of a Private Limited Company (Ltd) or Public Limited Company (PLC), public liability insurance for limited companies protects you from any unexpected claims that you and the employees could be liable for.

Additionally, if you run a business which takes on work by a local authority, your contract will usually state that you must have a particular level of public liability insurance in place.

Ultimately, it’s up to you as a business owner to decide whether you need public liability insurance for your business and whether you could afford the financial impact of a compensation claim against your business.

If you are concerned about the risks associated with your business, visit our public liability insurance page to find out more or call Ashburnham Insurance on 0800 1696137. We can provide insurance for all sorts of trades.

Ask Us A Question