Public Liability Insurance

Contractors, freelancers and other business owners may be familiar with the concept of Public Liability Insurance (PLI) which pays out on behalf of the holder if a third party suffers loss or damage, is injured, or property is damaged during the course of the insured conducting their business activities.

What does Public Liability Insurance cover?

This type of insurance is designed to protect business owners against claims that result in legal proceedings. A good policy will cover the cost of legal expenses, including any compensation the business is required to pay. Although not legally required for business, some trading authorities and end clients may require you to hold PLI cover if your business is pitching for work. Having adequate PLI cover is often seen as a hallmark of a reputable business.

The benefits to contractors, freelancers and other businesses of having adequate PLI in place include the obvious peace of mind of knowing any accidental damage or injury caused whilst working would not be business-ending or have a devastating financial outcome. PayStream receives a number of queries from our clients about PLI and here are a few examples of what we’re commonly asked:

Public Liability Insurance FAQS

PayStream receives a number of queries from clients about PLI and here are a few examples of what we’re commonly asked:

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What level of Public Liability Insurance cover do I need?

This will depend upon things like the size of your business, the scale of your contracts and any end-client requirements together with the level of risk in your industry sector.

Does Public Liability Insurance cover employees?

No. It only offers you protection against claims made by third parties. If you’re looking to cover your employees, you’ll need Employer’s Liability Insurance. Contact your insurance broker or provider for more information about this different type of cover.

My household insurance covers me for public liability. Will this also cover my contracting work?

Probably not since your home policy is likely to cover domestic risk only. You’ll need to check your policy and speak to your insurer if it’s not clear.

Does Public Liability Insurance cover me if I’m injured in the course of my work on a construction site?

No. You’ll need to look at personal accident insurance for this type of cover.

I’m an IT consultant, often work from home and only have limited contact with the public. Am I likely to still need Public Liability Insurance?

Although PLI is not mandatory you need to consider potential risks in your interaction with clients, suppliers, sales reps and other third parties regardless of location.

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