Public liability insurance for small business

An excess is the amount you pay towards any insurance claim you make. 

For example, if your excess is £100 and you make a claim worth £1000, your payout will be a maximum of £900. 

^{*Policy excesses vary per provider and there will be specific excesses applied to different covers within your policy. Therefore, it is always important to check with your broker to find out what excesses you will pay should you need to make a claim.} 

Not necessarily. Unlike employers’ liability and motor insurance, public liability cover isn’t a legal requirement and so many insurers won’t provide a certificate. Speak to your broker if you need evidence of your insurance.

Public liability insurance only applies to injury and property damage claims made by people who don’t work for you. It doesn’t cover workplace personal injury, injuries your employees suffer, or damage to your property.

Yes. Public liability is tax-deductible as it is classed as a business cost that’s included in HMRC’s definition of allowable expenses. 

_{*Bionic Financial Services does not provide tax advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax advice. You should consult your own tax advisors for advice.} 

Public liability insurance covers you against damage claims made by members of the public, while employers' liability insurance covers you against injury claims made by your employees. Another difference is that public liability insurance isn’t a legal requirement, but employers’ liability insurance is required by law if you employ one or more people.

Without this cover, businesses may face substantial out-of-pocket expenses for legal fees or compensation claims. In some cases, it could also limit opportunities to work with certain clients, especially if you’re a tradesman. 

Yes, some trade bodies and clients may require proof of public liability insurance before granting endorsements or contracts, giving your business a competitive edge.

When taking out insurance, it’s important you include cover to protect against the biggest risks to your business. Here are some other types of business insurance that could be useful to consider: 

• Business equipment insurance 
• Business interruption insurance 
• Commercial property insurance 
• Employers’ liability insurance 
• Legal expenses insurance 
• Product liability insurance 
• Professional indemnity insurance 
• Property maintenance insurance 
• Stock insurance 
• Tradesman insurance 
• Workshop insurance