Trades
How much public liability cover do tradespeople need? £2m to £10m
Public liability isn't a legal must for most trades, so the client or contract sets the level. Council contracts we checked ask for £2m, £5m or £10m.
There's no single legal figure: public liability insurance is generally voluntary, so the amount you carry is whatever your client or contract asks for. The council contracts we checked ask for £2 million, £5 million or £10 million, and the riskier the work, the higher the figure.
Here's how those numbers come about, what the wording means and how to check what a job needs before you price it.
Is public liability insurance a legal requirement for tradespeople?
No, not for most trades. The Health and Safety Executive's guide to the Employers' Liability (Compulsory Insurance) Act 1969 says that public liability insurance "covers you for claims made against you by members of the public or other businesses, but not for claims by employees", and that it is "generally voluntary".
So the law won't tell you how much to carry. The pressure comes from elsewhere:
- Clients. Councils, housing associations, main contractors and facilities companies often write a minimum into their terms.
- Homeowners. Local authority advice tells people hiring builders to check for cover. Ashford Borough Council's guide to choosing a builder, for example, tells homeowners to "make sure your builder has up to date public liability insurance". Homeowners rarely name a figure, but they may ask to see your certificate.
- Your own risk. If your work damages someone's property or injures a member of the public, the claim lands on you. The limit you choose decides how much of it the policy can pay.
How much public liability cover do clients usually ask for?
The clearest guide is what clients actually publish. Two councils' current terms show the typical range:
| Client | What their terms say | Public liability asked for |
|---|---|---|
| East Sussex County Council (all service and works contracts) | Standard minimum for each claim | £10 million |
| East Sussex County Council | Activities that are fairly risk free or low risk | £5 million |
| East Sussex County Council | Activities with virtually no risk | £2 million |
| Buckinghamshire Council (property maintenance) | Whatever the contractor thinks is appropriate, but not less than this for any one accident unless agreed in writing | £5 million |
Other councils, schools, housing providers and private firms set their own levels, so treat these as examples rather than a rule. The pattern in both is useful, though: £5 million or more is the starting point, and a lower figure is the exception that has to be justified by low risk or agreed in writing.
Why domestic and commercial jobs differ
A homeowner hiring a decorator for a back bedroom isn't usually working from a contract template. A council or main contractor is, and that template has to cover everything from a minor repair to work in a busy public building. That's why the same tradesperson can be fine with one limit for private customers and find it falls short the first time they tender for public work.
What does "£5 million any one accident" actually mean?
The number on its own doesn't tell the whole story. Contracts word the limit in different ways, and the wording matters:
- Per claim or per accident. East Sussex asks for cover "for each claim" and Buckinghamshire for "any one accident". In plain terms, the client wants the full limit available for each separate incident, rather than one total shared across the policy year (known as an aggregate limit). Check that your policy's limit of indemnity is worded to match.
- Subcontractors. Buckinghamshire's terms say the contractor must make sure any subcontractors hold equivalent cover. If you bring in other trades, you may have to collect their certificates too.
- Covering the client. Buckinghamshire also requires policies to be extended to indemnify the council against claims the contractor may be legally liable for. Check whether your policy wording includes this.
For example, picture a made-up job: a contract asks for £5 million any one accident, and your policy shows £2 million. You'd either need to raise your limit before you start, or get the client's agreement in writing to accept less, which is exactly the option Buckinghamshire's terms allow for.
How do you check what cover a job needs?
Before you quote, it saves time to know whether your current policy fits. A simple routine:
- Find the insurance clause. In a tender pack or contract, it's usually headed "insurance" or "indemnity". Note the public liability figure and how it's worded (per claim, any one accident, or in the aggregate).
- Check for other covers named. Contracts often list employers' liability alongside public liability, and some list others, such as products liability or professional indemnity.
- Compare it with your schedule. Look at your limit of indemnity, the business activities listed and the policy end date. If your trade isn't described accurately, the cover may not respond to a claim.
- Check the dates. Make sure the policy won't lapse partway through the job, and that you can supply a renewed certificate if it renews mid-contract.
- Ask about changes before you accept. If you need a higher limit, a different activity added or the client named on the policy, sort it out with your insurer or broker before the start date.
- Keep certificates to hand. Clients may ask for a copy at tender stage and again each year.
If you're shopping around for a higher limit, you can compare tradesman insurance quotes by entering your trade and the limit the contract asks for.
Is employers' liability the same as public liability?
No, and contracts usually ask for both. Employers' liability covers claims from your own employees for injury or illness caused by their work. Unlike public liability, it's compulsory.
According to GOV.UK:
- you need it as soon as you become an employer
- it must be for at least £5 million, from an authorised insurer
- you can be fined £2,500 for every day you're not properly insured, and £1,000 if you don't display your certificate
- you're exempt if you only employ close family members (such as a spouse, civil partner, parent, child or sibling) or someone based outside England, Scotland and Wales
The HSE guide adds that the £5 million minimum includes costs and that, in practice, most insurers offer at least £10 million. It also says the family exemption does not apply to family businesses incorporated as limited companies. It also explains that whether someone counts as your employee depends on the real working relationship, not just what you call it. A labourer you direct day to day, who uses your tools and can't send a substitute, may need covering even if they're paid as self-employed.
This matters if you take on help for a busy spell. If a contract asks for employers' liability and you genuinely work alone, say so; the client may just want confirmation.
What else do tradespeople get asked to insure?
Public liability is usually the headline figure, but it rarely sits alone. Depending on the trade and the client, you may also see requests for cover on tools and equipment, contract works (the job itself while it's being built) or professional indemnity where you give design advice. None of these are set by law for most trades, so the contract is again what to read.
Your van is a separate matter altogether. A tradesman policy doesn't insure your vehicle, and how you use the van affects which motor cover you need. Our guide to social, domestic and pleasure vs carriage of own goods van insurance explains the difference, and if you run several vans for the business, how many vehicles you need for fleet insurance covers when a fleet policy comes into play.