Simply Business Public Liability Insurance UK: What It Covers and Costs

What public liability insurance covers

Public liability insurance responds when a member of the public, a client or another third party suffers injury or property damage that is connected to a business and the business is found legally responsible. Typical examples include a customer tripping over equipment, accidental damage to a client's premises while working there, or a passer-by injured near a work site. The cover generally meets the cost of compensation awarded against the business as well as the legal costs of defending the claim.

When arranged through Simply Business, the cover is placed with an insurer on the broker's panel, so the wording, limits and conditions reflect that insurer's product. The customer selects a cover limit, commonly 1m, 2m, 5m or 10m of indemnity, often guided by what their contracts or clients require. The limit is the maximum the insurer will pay for a covered claim, which is why many businesses match it to the largest contract requirement they face.

Public liability is frequently bundled with other SME covers in a single policy. A tradesperson might combine it with tools and employers liability cover, while a consultant might pair it with professional indemnity. Bundling does not change the fundamental nature of public liability; it simply packages related risks within one arrangement.

What public liability does not cover

Public liability has clear boundaries. It does not cover injury to your own employees, which is the role of employers liability insurance, nor does it cover financial loss caused by professional advice, which falls to professional indemnity. Damage to your own tools, stock or premises is handled by separate property covers, not by public liability.

Other common exclusions apply across the market and will be set out in the specific insurer wording. These often include deliberate or reckless acts, claims arising from activities not declared at inception, and work outside the territorial limits stated in the policy. Faulty workmanship that requires re-doing the job itself is generally not a public liability matter, although resulting third-party injury or damage may be.

• Not covered: injury to your own employees (needs employers liability).
• Not covered: financial loss from advice or services (needs professional indemnity).
• Not covered: damage to your own property, tools or stock.
• Often excluded: undeclared activities and work outside stated limits.

What influences the cost

Premiums for public liability cover are driven by risk factors specific to the business. The trade or occupation is the largest single influence, because some activities carry higher injury and damage exposure than others. Turnover, the number of staff, the locations worked in, the chosen indemnity limit and the claims history all feed into the price set by the underwriter.

This guide does not quote a specific premium, because prices are individual to each business and change with market conditions. The relevant point for buyers is that a higher indemnity limit and higher-risk activities raise the premium, while a clean claims record and lower-risk work tend to reduce it. Comparing like-for-like limits and reading the wording matters more than focusing on headline price alone.

How public liability performs on complaints

Complaint outcomes for insurance firms can be reviewed through the Financial Ombudsman Service, which publishes uphold rates and complaint volumes by firm at financial-ombudsman.org.uk. Across general insurance, FOS data has historically shown uphold rates commonly in the 30 to 40 per cent range sector-wide, though this varies by product, by firm and by year. Liability claims can be complex, so readers should consult the current dataset rather than a single quoted number.

Because Simply Business arranges rather than underwrites the policy, a complaint may relate to how the cover was sold and administered or to a claim decision made by the insurer. Both routes are within the FOS scope for eligible complainants, and both follow the same eight-week final-response and escalation framework.

How to make a public liability claim

If a third party is injured or their property is damaged, the business should notify the claim promptly using the route on the policy schedule, which usually points to the underwriting insurer or its claims handler. Admitting liability directly to the third party should generally be avoided, as the policy conditions often require the insurer to manage the response. Retaining evidence such as photographs, witness details and correspondence supports the assessment.

If a claim is declined, the policyholder can use the complaints process, which must produce a final response within eight weeks. Eligible micro-enterprises and individuals can then escalate to the Financial Ombudsman Service free of charge within the applicable time limits.

Frequently asked questions

Is public liability insurance a legal requirement?

No, public liability cover is not required by law for most businesses. However, many clients, landlords, event organisers and contracts make it a condition of working with you.

What cover limit should a business choose?

Limits commonly range from 1m to 10m of indemnity. Businesses often match the limit to the highest level required by their contracts or clients, but the choice and responsibility rest with the policyholder.

Does public liability cover my employees?

No. Injury to your own staff is covered by employers liability insurance, which is legally required for most businesses with employees. Public liability covers third parties such as clients and the public.

Who decides a public liability claim bought through Simply Business?

The underwriting insurer named on your policy schedule decides the claim, following the notification process in your documents. Simply Business acts as the broker arranging the cover.

What affects the price of public liability cover?

Trade, turnover, staff numbers, location, the chosen indemnity limit and claims history all influence the premium set by the underwriter. Higher-risk activities and higher limits generally cost more.

Can I complain if my claim is refused?

Yes. Use the insurer or broker complaints process, which must give a final response within eight weeks. Eligible customers can then escalate to the Financial Ombudsman Service free of charge.