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What’s the Difference Between Public Liability and Employers Liability Insurance?

As a business owner, it’s essential to understand the different types of insurance coverage available to you. Two of the most important insurance policies that you need to consider are public liability and employers’ liability insurance. While both policies are designed to protect your business, they cover different areas of risk and are suited to different types of businesses.

In this article, the Tradesman Saver team will provide a comprehensive comparison of public liability vs employer liability insurance and help you decide which policy is best for your business. We will cover the key features of each policy, the differences between them and offer expert advice to help you make an informed decision.

Key Takeaways:

  • Public liability insurance covers your business against third-party injury or property damage, while employers’ liability insurance covers employees’ work-related injuries or illnesses.
  • Public liability and employers’ liability insurance have different legal requirements, and some businesses may be required to have both policies in place.
  • To choose the right liability insurance for your business, you will need to consider various factors, such as the type of business you run, the number of employees you have, and the risks involved.

What is Public Liability Insurance?

As we discussed earlier, public liability insurance covers businesses against claims for damages and legal costs arising from third-party injury or property damage brought about by a member of the public. This type of insurance can provide your business with crucial financial protection in case something goes wrong.

Public liability insurance can cover a range of scenarios, including accidents that occur on your business premises or at a third-party location or property damage caused by your business operations.

What is Employer Liability?

Employer’s liability insurance is another type of liability coverage that businesses in the UK must have. It is designed to protect businesses against claims made by employees who have suffered work-related injuries or illnesses.

The coverage offered by employers’ liability is comprehensive. It can help businesses cover the legal costs and compensation claims they may face if an employee gets injured while working for them. Employers’ liability is not just a legal requirement but also beneficial in protecting businesses from financial risks.

According to the UK law, businesses must have employers’ liability if they have employees and face the risk of a job-related injury or illness claim. The minimum required coverage is £5 million, although most policies offer up to £10 million in coverage. It is important to note that employer liability does not cover the self-employed or contractors who work for your business.

Employers’ liability is beneficial for businesses as it enables them to operate without the added worry of financial settlement in the event of an employee claim. By having the appropriate coverage, businesses can avoid potential legal issues and financial losses that they may face without it.

What’s the Difference Between Employers Liability & Public Liability Insurance?

When deciding on the appropriate liability insurance for your business, you may find yourself comparing public liability and employers’ liability insurance. While both policies cover legal costs and compensation for injuries and damages, they differ in several key ways.

Public Liability Insurance   Employers’ Liability Insurance
Covers claims from third parties   Covers claims from employees
Protects against property damage or injury caused by the business   Protects against work-related injuries or illnesses suffered by employees
Not legally required in the UK, but highly recommended   Legally required for businesses with employees in the UK
Useful for businesses that interact with the public or have clients on their premises   Essential for businesses that employ staff members


It is important to note that public liability insurance will not cover claims made by employees, and employers’ liability insurance does not cover claims made by third parties.

When deciding which insurance policy is right for your business, you should consider the nature of your operations and the potential risks involved. If you interact with the public regularly, public liability insurance is essential to protect against third-party claims. On the other hand, if you employ staff members, employers’ liability insurance is a legal requirement and necessary to cover claims from employees.

It is important to remember that both types of liability insurance can help safeguard your business from financial risks and legal liabilities. We recommend consulting with an insurance professional to determine the best coverage for your specific business needs.

Choosing the Right Liability Insurance for Your Business

When choosing liability insurance for your business, consider factors like the nature of your operations and the number of employees. High-risk businesses may need more coverage than those in low-risk environments.

Employers’ liability insurance is a legal requirement for UK businesses with employees and can protect against work-related claims.

Public liability covers third-party injury or property damage. Compare coverage scope, claim types, limits, excess, and premiums. Consult insurance professionals for the right coverage.

At Tradesman Saver, we provide affordable and comprehensive insurance options for UK tradespeople and small businesses.

For Employer’s Liability & Public Liability, Make Sure It’s Tradesman Saver

When it comes to choosing the right liability insurance for your business, there are several factors to consider. The nature of your business, the number of employees, and the potential risks involved should all be taken into account when deciding on the appropriate coverage.

At Tradesman Saver, we understand that every business has unique needs. That’s why we offer tailored public liability, employers’ liability, and product liability insurance for tradespeople and small businesses. With our affordable and comprehensive coverage, you can have peace of mind knowing that your business is protected.

Don’t hesitate to consult with our insurance professionals to ensure that you have the right coverage for your specific business needs. Contact us today to get started!

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