Public Liability Insurance Cost Calculator 2025/26

Public liability insurance covers legal costs and compensation claims if your business causes injury to a third party (customer, member of the public) or damage to their property. For example: a customer trips over equipment at your premises; you accidentally damage a client's flooring while working; a product you sell causes an allergic reaction. The policy covers your legal defence costs and any compensation awarded, up to the policy limit.

Public liability insurance is not legally required for sole traders, but it is strongly recommended — and often contractually required by clients, landlords or venues. If you work for businesses, local authorities or government bodies, they will typically require proof of at least £2M or £5M public liability cover before you can start work. The annual cost for a low-risk sole trader is typically £60-200, making it very cost-effective protection.

The right coverage limit depends on your work and contract requirements. £1M is the minimum for most low-risk sole traders. £2M is widely accepted for professional services and tradespeople. £5M is increasingly required by local authorities, NHS contracts and large commercial clients. £10M is required for high-value construction contracts and some public events. Check the specific requirements in any contracts you are tendering for before setting your coverage limit.