How Much Is Public Liability Insurance for the Self-Employed

How Much Is Public Liability Insurance for the Self-Employed?

If you work for yourself, protecting your business from the unexpected is a smart move. One of the most common forms of cover for sole traders and freelancers is public liability insurance. But how much does it actually cost?

The truth is, there is no one-size-fits-all price. The cost of public liability insurance for self-employed people depends on your industry, the level of cover you need, and your individual circumstances. In this article, we break down what affects the cost, provide typical price ranges, and explain how to find the right cover without overpaying.

What Is Public Liability Insurance?

Public liability insurance protects you if a member of the public claims that your business activities caused them injury or damaged their property. It covers legal costs, compensation claims, and any court fees if you are found liable.

Examples of when public liability insurance might be used:

• A customer trips over your equipment and suffers an injury

• You accidentally damage a client's property while carrying out a job

• Someone is hurt at your market stall, event, or premises

While not legally required, many clients, councils, and trade associations expect you to have it before they hire or approve you.

How Much Does It Cost?

For self-employed individuals, public liability insurance typically costs between:

• £40 and £70 per year for low-risk trades (e.g. writers, consultants, virtual assistants)

• £80 to £200 per year for medium-risk roles (e.g. cleaners, DJs, mobile beauticians)

• £200 to £600 per year or more for high-risk trades (e.g. electricians, builders, gas engineers)

These figures are based on a standard £1 million to £2 million cover limit. If you need higher levels of protection (such as £5 million or £10 million), expect to pay more.

Premiums can often be split into monthly payments, which is helpful for managing cash flow.

What Affects the Price of Public Liability Insurance?

Several factors influence your premium:

1. Type of Work You Do

Higher-risk industries like construction or trades carry a greater chance of claims, so insurers charge more.

2. Level of Cover Required

Most self-employed people opt for £1 million or £2 million, but if you work with local authorities, you may be required to hold £5 million or more.

3. Number of Employees

If you work entirely on your own, you’ll pay less than someone with staff. Note that if you hire even one person, you’ll also need employers' liability insurance, which is a legal requirement.

4. Claims History

If you’ve had previous claims made against you, or work in a field where claims are more likely, your premium may rise.

5. Turnover and Size of Business

Larger businesses with more client interactions and higher turnover tend to face higher costs, simply because the risks are greater.

Do I Really Need Public Liability Insurance?

While it is not a legal obligation for most self-employed people, it is often essential in practice. You may find you need it in order to:

• Secure work with larger clients or councils

• Join a professional trade association

• Trade at markets, events, or on client premises

• Give your clients peace of mind

If your business deals with members of the public in any way, public liability insurance is strongly recommended.

How Can I Find the Best Price?

To get the best deal on public liability insurance:

• Compare quotes from multiple insurers or use a broker

• Use specialist providers who understand your industry

• Avoid over-insuring (choose a cover limit that reflects your actual risk)

• Check for package policies that include other types of cover you may need (such as tool insurance or professional indemnity)

• Pay annually if you can, as monthly plans often include interest

Some well-known providers include Simply Business, AXA, Direct Line, Hiscox, and Trade Direct Insurance. Most offer quick online quotes based on a short questionnaire.

Final Thoughts

Public liability insurance for the self-employed typically costs anywhere from £40 to £600 per year, depending on your line of work, risk level, and required cover. For most small businesses, it is a worthwhile investment that protects against costly accidents and claims.

By comparing quotes and understanding your risk profile, you can find a policy that offers the right protection at a fair price. Whether you’re a plumber, a photographer, or a personal trainer, having public liability insurance in place is a sensible way to safeguard your business and reassure your clients.