Liability insurance for contractors

Liability insurance protects businesses and individuals against the financial consequences of being held legally responsible for injury or damage to others. While most types are optional, Employers' Liability is a strict legal requirement if you have staff. 

Key Types of Liability Insurance

• Employers' Liability (EL):
• Legal Status: Mandatory by law for almost all businesses with employees (including part-time staff, volunteers, and trainees).
• Coverage: Provides at least £5 million in cover (though £10 million is standard) to pay compensation if an employee is injured or falls ill due to their work.
• Penalty: You can be fined up to £2,500 per day for not having it.
• Public Liability (PL):
• Coverage: Protects against claims from third parties (customers, clients, or the public) for accidental injury or property damage.
• Legal Status: Not legally required, but often a contractual necessity for government tenders, trade associations, or working on client sites.
• Limits: Typically ranges from £1 million to £10 million.
• Professional Indemnity (PI):
• Coverage: Covers legal and compensation costs if a client suffers a financial loss due to your professional error, bad advice, or negligence.
• Who Needs It: Accountants, consultants, designers, and any professional offering advisory services.
• Product Liability:
• Coverage: Protects against claims for injury or damage caused by a faulty product you manufactured, sold, or supplied.
• Integration: Often included as standard within a Public Liability policy. 

Estimated Costs (as of 2025/2026)

Insurance Type                                               Typical Starting Price                                          Influencing Factors

Public Liability                                                From £6 - £10/month                                           Industry risk, turnover, claims history

Employers' Liability                                    From £56/year                                                           Number of employees, occupation risk

Professional Indemnity                           From £5.64/month                                                 Nature of advice/service provided

Our General Liability Policy is designed to meet the needs of larger, more complex businesses and is available for over 400 trade types. 

Key points:

Cover arranged with “A” rated carriers. 

Statement of fact basis – no need for proposal form.

Ability to cover low risk trades working at high-risk locations.

Cover:

The Liability Policy is designed for risks written on a wages and turnover basis. Cover can include the following as standard but higher limits may be available on request:

Public Liability – up to £5 million with the option to include treatment liability where required.

Products Liability – up to £5 million with the option to include exports to the USA/Canada where required.

Employers’ Liability £10 million

Essential Business Legal Solutions (Legal Expenses).

How much does liability insurance cost? 

Your policy will depend on the specifics of your business, the unique risks you face and the level of public liability cover you need. When calculating your premium, we will take a variety of factors into account, including:

• The size of your business
• The industry you operate in
• The nature of your business

How to get liability insurance

To arrange liability insurance, simply answer a few questions on our online quote form, or call us on 0203 488 7193. Our lines are open from Monday – Friday, 08:30 – 17:30.

We’ll talk you through your options and provide you with quotes for public liability insurance in minutes.