Trades
Do I need public liability insurance by law? UK rules for trades
Do I need public liability insurance by law? No, but clients, councils and trade schemes often insist on it. Here is where the rules come from.
If you are asking "do I need public liability insurance by law?", the answer in the UK is no: the Health and Safety Executive says public liability insurance is generally voluntary, while employers' liability insurance is compulsory. But for most tradespeople that is only half the story, because the people who give you work (clients, councils, main contractors and trade schemes) can make public liability a condition of the job.
This guide covers what the law actually says, who can make cover compulsory in practice, and how to find out what level of cover a particular job needs.
Is public liability insurance a legal requirement in the UK?
No. There is no Act of Parliament that makes a plumber, electrician, builder or decorator hold public liability insurance. The HSE's guide to the employers' liability law spells out the difference: public liability covers claims made against you by members of the public or other businesses, but not claims by your employees, and it is "generally voluntary".
So if someone asks "is public liability insurance compulsory?", the accurate answer is: not by law, but often by contract. If you trip a customer with a cable or flood the flat below, any claim for which you are legally liable comes to you whether or not you hold cover. The insurance decides who pays it, not whether you are liable.
What insurance is compulsory for tradespeople?
The cover the law does insist on is employers' liability. 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, and you can be fined £2,500 for every day you are not properly insured. You can also be fined £1,000 if you do not display the certificate.
The HSE guide sets out the main exemptions that matter to small trades firms:
- a family business where every employee is a close relative (for example a spouse, parent, child or sibling), though this exemption does not apply to family businesses that are limited companies
- a company whose only employee is the owner, where that person owns 50% or more of the shares
Citizens Advice puts it bluntly to homeowners: a trader with employees who has no employers' liability insurance is breaking the law.
Labourers and "self-employed" helpers
This catches people out. The HSE says it does not matter whether you call someone employed or self-employed, or what their tax status is. What counts is the real nature of the relationship and how much control you have over their work. Signs that you may need employers' liability for them include deciding where, when and how they work, supplying their tools and materials, and not allowing them to send a substitute. Someone who works for several clients, brings their own kit and can send someone else in their place is more likely to be genuinely independent.
Do I need public liability insurance if I'm self-employed?
Not by law. A sole trader working alone needs neither public liability nor employers' liability insurance to trade legally. Once you take someone on, employers' liability becomes a legal duty (unless an exemption applies), but public liability stays optional in law.
In practice, being self-employed is where the "do I need public liability insurance in the UK" question usually gets decided by your customers. Domestic clients are told to ask for it: Citizens Advice tells homeowners to ask what insurance a trader has, ask to see the policies and check they don't run out before the work is finished. Its checklist names public liability alongside employers' liability, professional indemnity and contractors' all-risk. A homeowner who follows that guidance may simply pick someone else if you cannot show a certificate.
Where does the requirement really come from?
For a tradesperson, public liability tends to become compulsory through one of these routes.
Main contractors and site rules
If you work as a subcontractor, the main contractor's subcontract or site rules usually set out what insurance you must hold. There is no single standard figure, so read the insurance clause in the paperwork itself and ask for it in writing before you start on site if it is not clear.
Council and other public sector work
Councils set their own insurance conditions, and they differ. A few published examples:
- East Sussex County Council's standard requirement is a minimum of £10 million for each claim for works and services contracts, which it may lower to £5 million for low-risk work or £2 million where there is virtually no risk.
- Southwark Council's contractor checklist asks for public liability of at least £5 million, possibly more depending on its risk assessment, plus employers' liability of at least £5 million.
- Buckinghamshire Council's property maintenance terms require public liability of not less than £5,000,000 for any one accident unless agreed otherwise in writing.
There are rules on how public bodies set these conditions. Under section 22 of the Procurement Act 2023, conditions of participation must be proportionate to the contract, and a contracting authority cannot require insurance for the contract to be in place before the contract is awarded. The Cabinet Office guidance explains that an authority can instead ask you to commit to holding the contract's level of cover, backed by an existing certificate or a letter from an insurer, and must check the cover is in place before awarding the contract. That means you do not usually have to buy a bigger policy just to bid. Southwark's own checklist says the same in plain terms: do not buy new cover until you have been formally awarded a contract.
Housing associations, landlords and managing agents
Organisations that keep an approved contractor list, such as housing providers, letting agents and block managing agents, often set their own insurance terms for anyone joining the list. As with councils, the only reliable figure is the one in their contractor agreement or application form, so ask for it before you price the work.
Trade schemes and registers
Joining a scheme can also bring an insurance condition. TrustMark says its scheme providers set the exact requirements for each trade, and registered businesses must also have financial protection including insurance against ceasing to trade. As one example, FENSA's TrustMark requirements list public liability with a minimum of £2 million indemnity, and employers' liability of at least £10 million if you employ staff. Other scheme providers can set different figures, so check the one you are applying through.
How much public liability cover do clients ask for?
There is no standard amount. The examples above, all from published pages read in November 2026, show how wide the range is:
| Who sets it | Public liability asked for | Employers' liability asked for |
|---|---|---|
| The law | None | At least £5 million (unless exempt) |
| FENSA (TrustMark scheme) | At least £2 million | At least £10 million if you have staff |
| Southwark Council | At least £5 million, possibly more | At least £5 million |
| Buckinghamshire Council (property maintenance) | Not less than £5 million any one accident | Required |
| East Sussex County Council | £10 million each claim as standard; £5 million or £2 million for lower-risk work | Not stated on that page |
Notice the wording. "Each claim" or "any one accident" is not the same as an aggregate limit for the whole year, and a contract may specify which it wants. Our guide to £2m public liability insurance: per claim limits, costs and aggregates explains the difference.
How to check what cover level each job needs
- Find the insurance clause. Look in the tender pack, pre-qualification questionnaire, subcontract, approved contractor form or scheme rules. East Sussex, for example, says its requirement is set out in the pre-qualification questionnaire where there is one.
- Note the exact figures and wording. Write down the public liability amount, whether it is per claim or aggregate, and any employers' liability, professional indemnity or contractors' all-risk requirement.
- Check for extra conditions. Some terms ask for the policy to extend to cover the client too. Buckinghamshire's terms, for instance, say the insurances must be extended to indemnify the purchaser.
- Compare it with your schedule. Your policy schedule shows your limits, the business activities covered and the renewal date. Make sure the description of your trade matches the work you are bidding for.
- Ask for written confirmation of what evidence they need. Usually a certificate or schedule, sometimes a letter from your insurer.
- Keep the dates in line. Check your cover will not lapse before the job ends, the same point Citizens Advice makes to homeowners.
If the cover you hold falls short, you can get tradesman insurance quotes: you fill in a short form and a specialist FCA-authorised broker contacts you with quotes, so you can give them the client's exact requirements. If you are weighing up a package against separate policies, Cheap business insurance: combined policy or separate covers? sets out how the two approaches work.