Public Liability Insurance Cost for UK Trades (2025)
A 2025 breakdown of public liability insurance costs for UK trades, what drives premiums, and how to avoid under-insuring.
Not financial advice
Pricing guidance here is educational. Model rate changes against your own books, suppliers, and market before implementing them.
The Reality: One claim can wipe out a year of profit. Public liability insurance is how you protect the business and win commercial work without looking unprofessional.
For a wider insurance overview, read Field Service Insurance Guide 2026.
What drives the cost
Premiums usually depend on:
- Your trade type and risk profile
- Annual turnover
- Claims history
- Cover limits (GBP 1M vs GBP 5M)
- Excess level
Risk profile examples
| Trade type | Typical risk profile | Why it matters |
|---|---|---|
| Cleaning | Lower | Fewer high-value damage claims |
| Plumbing | Medium | Water damage risk |
| Electrical | Medium to high | Fire or compliance risk |
| Roofing | High | Working at height |
These are directional, not exact. Always confirm with a broker.
Common cover levels (what clients expect)
- Domestic-only work: GBP 1M is common
- Commercial work: GBP 2M to GBP 5M is common
- Public sector or large contracts: GBP 10M is sometimes required
If you work on contracts, keep your cover aligned with your terms. See How to Write Trade Business Contracts.
How to reduce premiums without under-insuring
- Increase excess if you can absorb small claims
- Pay annually rather than monthly to reduce fees
- Improve risk controls (checklists, sign-off, photo evidence)
- Avoid gaps in cover which reset your risk profile
For job evidence, use Warranty Policy Template for Contractors 2026.
Broker quote checklist
Bring this to your broker to speed up accurate pricing:
- Trade type and services offered
- Turnover estimate for the year
- Largest single job value
- Claims in the last 3 years
- Contract requirements for cover limits
Avoid these common mistakes
- Buying the cheapest policy without checking exclusions
- Letting cover lapse during quiet months
- Understating turnover or job values
- Failing to add subcontractor clauses
If you use subcontractors, also read Employers' Liability Insurance for Subcontractors (UK 2025).
Where Toolfy fits
Toolfy keeps job evidence and contracts in one place so you can back up claims and share insurance certificates quickly. Start a free trial to centralise your paperwork.
FAQ
Do I need cover for subcontractors? If subcontractors represent your business, you should check your policy wording and require proof of their cover.
Will higher cover win more contracts? Yes. Many commercial buyers use cover levels as a qualification filter.
How often should I review my policy? Annually, or whenever you add new services or larger job values.
⚠️ Important Disclaimer
This guide is for general informational and educational purposes only. It does not constitute professional advice of any kind (legal, financial, tax, insurance, or otherwise).
Before making business decisions: Consult with qualified professionals (solicitors, accountants, insurance brokers, etc.) who can assess your specific circumstances. Laws, regulations, and industry standards change frequently and vary by location and situation.
Toolfy and the article authors accept no liability for decisions made or actions taken based on information provided in this guide. You are solely responsible for ensuring compliance with all applicable laws and regulations.
Frequently Asked Questions
How much does public liability insurance cost in the UK?
How much cover do I need?
Is public liability insurance required by law?
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