If you are self employed then it is recommended you have personal public liability insurance policy in place to provide protection for your business against liability claims against you or your business. Failure to have a policy in place could result in a claim against your business so large that it could literally put you out of business. At the present time public liability insurance is not legally compulsory but is highly recommended and if you consider the costs of defending a liability claim yourself against the small cost of a public liability insurance policy then you will realise the importance of having a policy in place.
The law states that if you have employees then you must have an employers liability insurance policy in place to the value of at least £5,000,000. This policy is mainly to protect yourself against claims made against you by employees for instance if they were to fall off a ladder and you were found to be negligent and held liable for the incident. Employers liability can be obtained at reasonable prices in a fully comprehensive policy cover your public and employers liability.