Public Liability Insurance for Sole Traders Explained

What public liability insurance covers, who may want it, how to choose a level of cover and what to check before you buy a policy.

When you work in other people's homes, accidents are not hypothetical. A ladder scuffs a wall, a bucket floods a floor, a tool damages a worktop, or a visitor trips over your kit. Public liability insurance exists to help with exactly this: claims from members of the public for injury or damage caused by your work.

It is not a legal requirement for most sole traders in the same way that some other insurances are, but many customers expect it and it can protect your savings. This is a general explanation, not financial advice, and you should compare policies and read the wording carefully.

What public liability insurance generally covers

In broad terms, a policy can help with:

Injury to a third party caused by your work, such as a customer or passer-by being hurt
Damage to a third party's property, such as a customer's furniture or flooring
Legal costs and compensation arising from such a claim, up to the policy limit

It generally does not cover injuries to you, damage to your own tools, mistakes in the quality of your work, or employees' injuries. Those need other kinds of cover.

Cover	What it is generally for
Employers' liability	Injury to employees; often legally required if you employ staff
Tools and equipment	Theft or damage of your own kit
Professional indemnity	Claims arising from advice or design errors
Personal accident or income protection	Support if you cannot work
Motor insurance (business use)	Driving for work, including carrying tools

Check your vehicle insurance. Personal policies often exclude business use unless you declare it.

Who might want public liability cover

Anyone whose work puts them in customers' homes or near their possessions is a candidate: cleaners, handymen, decorators, gardeners, movers, mobile hairdressers and tech helpers. Some customers, landlords or managing agents ask to see a certificate before booking, and certain trades have specific requirements, which you can explore in our guide to trade certifications and registrations.

It is important to say clearly what is and is not provided. Compito is a marketplace connecting customers and providers; it does not provide insurance for your work, so you should arrange any cover you need yourself.

How to choose a level of cover

Cover is expressed as a maximum limit per claim. When deciding, think about:

The worst realistic claim. What is the most expensive thing you could damage or the worst injury you might cause?
Where you work. Valuable homes, shared buildings or commercial premises raise the stakes.
What customers or clients require. Some ask for a minimum cover level.
Your budget. Premiums vary by trade, turnover and claims history, so compare several quotes.

Do not choose purely on price. A cheap policy with narrow wording may not respond when you need it.

What to check in the policy

Your trade is described correctly. Misdescribing your work can invalidate cover.
Excluded activities. Working at height, with heat, or with chemicals are common exclusions or conditions.
The excess. The amount you pay yourself on a claim.
Territory and premises. Whether work at commercial premises is included.
Subcontractors and helpers. Whether they are covered.
Conditions. Some policies require specific safeguards or qualifications.
Claims-made versus occurrence basis. Understand when cover applies.

Where to buy

Options include specialist brokers, insurers who sell directly, and membership organisations or trade associations that offer cover to members. Compare like for like and keep your policy documents with your business records. Do not rely on a verbal assurance: the documented wording governs.

Using insurance in your profile and offers

If you hold cover, say so factually, for example in your profile and offers, and be ready to provide proof if a customer asks. Do not claim cover you do not have. Our guide to writing a profile bio that gets bookings shows where trust details fit naturally.

Common mistakes

Assuming a customer's home insurance will cover your mistakes.
Letting a policy lapse and not noticing.
Forgetting to update your insurer when your services change.
Buying cover that excludes your main activity.

Frequently asked questions

Is public liability insurance a legal requirement?

For most sole traders without employees it is not a general legal requirement, though some contracts, venues or customers require it. Employers' liability and motor insurance have their own rules. Check gov.uk and your insurer.

Is it tax deductible?

Business insurance premiums are generally an allowable business expense, subject to the usual rules. Confirm with gov.uk or an accountant.

Does the platform I get work through insure me?

Do not assume so. On Compito, you should arrange any insurance you need yourself, and check what any platform states before relying on it.

Become a Compito provider

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