By Tahir Abbas, Editor · Last updated 1 November 2026
Public liability insurance covers your business when a member of the public is injured or their property is damaged because of your work: a customer slipping in your shop, a tool dropped from scaffolding, a visitor tripping over a cable. The claim can include compensation and legal costs, and even a small business can face a large one.
This guide explains what public liability insurance typically covers, what it leaves out, who it suits, and how to compare policies before you buy.
What public liability insurance typically covers
- Compensation for injuries to members of the public
- Damage to third-party property
- Legal defence costs for covered claims
- Claims arising at your premises, at clients’ sites and at events
What public liability insurance typically does not cover
- Injuries to your own employees — that is employers’ liability
- Damage to your own property
- Financial loss from professional advice — that is professional indemnity
- Deliberate acts and work done outside the policy’s scope
Who public liability insurance is for
Any business that meets the public: shops, restaurants, tradespeople, market stalls, event organisers and mobile businesses. It is often required before you can work on a client’s site or trade at an event.
How to choose and compare public liability insurance
- Choose a limit that reflects the worst realistic claim, not the cheapest quote
- Check the policy covers all the places you work, including clients’ premises
- Confirm whether products you sell are covered, if relevant
- Look at the excess and any exclusions for your trade
Back to Business & Commercial Insurance and Insurance.
Sources and Disclosure
This guide is general information, not financial advice. Plan features described here are general and vary by insurer and state; always read the sample policy before you buy. For the rules governing insurance in your state, see the consumer resources of the National Association of Insurance Commissioners (NAIC). Disclosure: Being Insurance is an independent comparison site. We may earn a commission when you buy through links on this page. That never changes which companies we list or the order we present them in.