Do I Need Public Liability Insurance | Lloyds Bank

Do I need liability insurance?

If your business comes into contact with members of the public, you may decide you need liability insurance. is insurance that is particularly popular with stores, merchants, and salons, because it can cover the cost of compensation claims brought against you for injuries or damage to someone’s property.

You may need liability insurance protection if you come into contact with third parties in one or more of these ways:

Reading: When is liability insurance needed

  • Customers visit your business premises, for example, if you run a shop, pub or restaurant, or hair/beauty salon.
  • works on client sites, for example, is a tradesman doing work on people’s homes or gardens.
  • You work in public areas, for example, you are a builder, and your work could cause injury or damage to someone passing by.
  • is public liability a legal requirement?

    Public liability insurance is not required by law, but many clients will insist that you be covered by public liability before allowing you to start work.

    Some trade associations will not allow you to register with them unless you have a valid liability policy.

    Local government or council contracts will generally require you to provide proof of liability insurance with a certain level of coverage before doing business with you.

    Which operations need civil liability insurance?

    if your business comes into contact with members of the public or customers. or if there’s a chance you could cause property damage, you may need liability insurance.

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    The types of businesses that would normally have merchants insurance include:

    • constructors
    • electricians
    • carpenters
    • gardeners
    • painters and decorators
    • plumbers
    • sign writers
    • This is not an exhaustive list as many businesses may require liability insurance.

      what does liability insurance cover?

      When accidents happen, your business could be responsible for paying compensation in many circumstances. Liability insurance can cover the cost of payments and legal fees if your business is sued by a third party (third parties include members of the public, customers, or clients, but not your staff).

      Liability insurance can cover an accident in your workplace or related to your business activities. this includes incidents at your facility, as well as those that occur while you are doing business off-site.

      What types of claims can civil liability insurance cover?

      Liability insurance may cover compensation claims brought against you for injuries or property damage from third parties, such as your customers, vendors, or any other members of the public who come into contact with your business.

      see more examples of liability insurance claims

      How much liability coverage do I need?

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      Every business is different, so the amount of coverage you need will depend on many different factors, including how much contact you have with the public, the types of clients you work with, and the size of your projects.


      read more about how much public liability coverage I need

      To summarize, here are some points to consider when deciding if your business needs liability insurance:

      • Do you or your business come into contact with customers or members of the public?
      • Could your business cause injury to someone or damage to your property?
      • Do your customer contracts require you to carry certain levels of public liability coverage?
      • Are you associated with any professional or trade body that requires its members to carry liability insurance?
      • Could a liability policy help your clients make sure they’re covered if something goes wrong?
      • Could you pay legal fees and any compensation costs in the event a claim is filed against you or your company?
      • more information about civil liability insurance

        how can lloyds bank business insurance services help you protect your business?

        We know your business is important to you, and keeping it secure will allow you to focus on the important tasks of everyday life.

        To help you do this, we’ve chosen to work with arthur j. gallagher insurance brokers limited, one of the largest insurance brokers in the uk.

        This service will provide you with access to specialist insurance advisors who will seek out a panel of leading insurers offering a range of products. to get the coverage you need at the price you want.

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