Public liability for tradespeople – builders, plumbers, electricians and more

If you run a trade business as a sole trader – whether you are a builder, plumber, electrician, joiner or decorator – public liability insurance is usually the first policy you need to arrange.

It covers the two main risks tradespeople face every day: damage to a customer’s property and injury to members of the public.

A single claim in either area can be costly to resolve if you are uninsured.

And, considering you can get cover starting from under £10 per month, it is a no-brainer if you want peace of mind.

For most trades, it is also the cover clients expect you to have in place before you start work.

Councils, contractors, and even domestic customers will often request proof of a valid policy.

This guide explains what public liability insurance covers for tradespeople, when it is required in practice, common claim scenarios on-site, and how it fits alongside other policies, such as employers’ liability and tools cover.

What does public liability cover for trades look like?

A public liability policy will usually pay for:

• Compensation and medical costs if someone is injured because of your work
• The cost of repairing or replacing third party property that has been damaged
• Legal defence costs and related expenses if a claim is made against you

For more reading on the basics, see our core guide to public liability insurance.

Why tradespeople need public liability

• Work on site creates risk. Ladders, power tools, hot works, water and electrics all increase the chance of accidental injury or damage.
• Client expectations. Domestic customers and commercial clients often ask for a valid policy certificate before they confirm a booking.
• Contract conditions. Local authorities, main contractors and facilities managers frequently set minimum limits of cover in tender documents.

Typical claim scenarios for trades

• A burst pipe during a bathroom refit leads to water damage in several rooms.
• A customer trips over your extension lead and suffers a wrist fracture.
• Sparks from hot works scorch flooring and built in cabinets.
• A miswired circuit damages appliances throughout a property.
• Debris falls from scaffolding and cracks a neighbour’s conservatory roof.

Is public liability a legal requirement for trades?

No. There is no general law that forces sole traders to hold public liability insurance. In practice you may find it is required by contracts and venue rules.

Councils and commercial sites often state the minimum limit that must be in place before work can begin.

How much cover do you need?

Common limits are £1 million, £2 million and £5 million. Domestic jobs often start at £1 million. Work for local authorities, schools, retail parks or large contractors may require £5 million or more.

Check tender documents and client terms before you quote.

What public liability does not cover

• Injury to your employees or labour only subcontractors. That is an employers’ liability matter.
• Damage to your own tools or materials. Use a tools and equipment policy for that.
• Pure financial loss from your designs or advice. That is usually professional indemnity.

Hiring subcontractors

Many trades use subcontractors. Insurance responsibility depends on how they work with you.

• Labour only subcontractors who work under your control and use your tools are treated as employees for insurance purposes. They should be covered by your employers’ liability policy.
• Bona fide subcontractors who work independently and supply their own tools and materials should carry their own public liability policy. Ask for copies of their certificates and check dates and limits.

See our guide: Do you need insurance if you hire subcontractors or freelancers.

Other useful cover for trades

• Employers’ liability insurance. A legal requirement if you employ anyone, including apprentices or casual staff. The fine for not having it can be up to £2,500 per day. Read the HSE guidance.
• Tools and equipment insurance. Covers theft, loss or damage to your kit. Check night time vehicle exclusions and security conditions.
• Commercial vehicle insurance. Personal policies usually exclude business use with tools and materials.
• Professional indemnity insurance. Consider this if you provide plans, drawings, specifications or sign off designs.
• Business interruption insurance. Can help replace income if you cannot trade after an insured event at your workshop or yard.

Comparison table: common insurance types for tradespeople

Where to get a quote

You can get specialist public liability cover for trades from Qdos, with flexible options for employers’ liability and tools insurance. Get a quick online quote. We have worked with Qdos for over 15 years at ByteStart.

FAQs

Is public liability insurance a legal requirement for trades?
No. It is not required by law. Many clients and venues will ask for it as a condition of work.

What level of public liability cover should I choose?
Typical limits are £1 million, £2 million and £5 million. Domestic jobs often start at £1 million. Council and commercial contracts may require £5 million or more.

Does public liability cover subcontractors who work with me?
It covers your legal liability to third parties. If you use labour only subcontractors who work under your control, you usually need employers’ liability as well. Bona fide subcontractors should have their own public liability policy and limits that match the contract.

Are my tools covered by public liability?
No. Public liability protects third parties. Tools and materials need a separate tools and equipment policy.

Do I need professional indemnity insurance if I only install?
Usually no. Consider professional indemnity if you provide designs, drawings, specifications or advice that a client relies on.

What documents will a client typically request before I begin?
Your insurance certificate showing dates and limits, risk assessment and method statement, and sometimes a health and safety policy and training records.

Further information

• Public liability insurance guide
• Public liability for markets and fairs
• Business insurance overview on the Companies House blog
• MoneyHelper: Insurance for your business