Public & Products Liability
Protecting your business from claims of injury to third parties or damage to their property.
Quick Summary
- Essential for any business that interacts with the public: If your work involves customers, visitors, or third-party contractors on your premises, public liability cover is non-negotiable.
- Products liability is often overlooked: If you manufacture, supply, or even retail physical goods, you need products liability cover — regardless of whether you made the item yourself.
- Limits are often contractually driven: Many clients and procurement frameworks require a minimum of £5 million or £10 million. We make sure your limit matches your contractual obligations.
- Daines Kapp tailors the policy to your trade: A market trader, a contractor, and a manufacturer each carry different risks. We make sure your policy reflects your actual exposure.
What is Public & Products Liability Insurance?
Public & Products Liability Insurance is a combined commercial policy that protects your business when a third party suffers injury or property damage as a result of your activities or the goods you supply. It covers the legal defence costs and any compensation awarded against you — costs that could otherwise be enough to close a smaller business.
In practice, these two covers are almost always purchased together. Public Liability responds when a member of the public, a client, or a visitor is injured or has their property damaged in connection with your business activities. Products Liability responds when a product you have manufactured, supplied, or distributed causes harm — even if the defect originated with the manufacturer rather than with you.
Who Needs Public & Products Liability Cover?
Virtually every business that comes into contact with third parties needs public liability cover. Consequently, this is one of the most widely held commercial insurance policies in the UK. However, the specific combination of public and products liability that is right for you depends on what your business actually does. The table below outlines the cover sections we structure for most clients.
| Cover Section | What It Protects | Daines Kapp Advice |
|---|---|---|
| Public Liability | Bodily injury to or property damage suffered by third parties — customers, visitors, or members of the public — arising from your business activities. | We make sure the policy wording covers all premises and all activities your business undertakes, including off-site work. |
| Products Liability | Claims arising from physical goods you manufacture, supply, repair, or distribute — whether the defect is yours or further up the supply chain. | Retailers and distributors are often unaware they need this. We advise on the scope of cover regardless of your position in the supply chain. |
| Legal Defence Costs | Solicitor fees, barrister costs, and expert witness expenses incurred in defending a claim — even where the claim is ultimately unsuccessful. | Defence costs alone can run to tens of thousands. We confirm that defence costs are covered in addition to — not within — the limit of indemnity. Note: for Public Liability this applies any one claim; for Products Liability, defence costs apply in the aggregate across the policy period. |
| Property in Your Care | Damage to third-party property that is in your custody or control while you are working on it — for example, a client’s machinery being serviced on your premises. | Standard public liability policies often exclude this. We check the wording and arrange an extension where needed. |
| Pollution Liability | Third-party claims arising from sudden and accidental pollution events caused by your business operations. | Particularly important for contractors, plant hire, and any trade involving chemicals or waste. Cover applies to sudden and accidental pollution only — gradual or continuing pollution is a standard exclusion. We verify that the wording extends to your specific activities. |
How Much Cover Do You Need?
The appropriate limit of indemnity depends on the size of your business, the nature of your work, and — increasingly — your contractual obligations. Many local authorities, large corporates, and public-sector procurement frameworks require a minimum of £5 million or £10 million. For specialist risks, including residential tower blocks, we can source limits of up to £50 million. Furthermore, some export markets and overseas contracts specify limits denominated in euros or dollars, which requires careful policy structuring.
In practice, higher limits are not significantly more expensive because the additional premium reflects a reduction in statistical risk rather than a proportionate increase in exposure. We always review your contractual requirements at inception and at renewal to ensure you are never caught short on a contract because your limit is insufficient.
Protecting Your Business with Daines Kapp
We act as more than a policy provider. As an independent broker, we have access to the full market — including specialist insurers for higher-risk trades such as arborists, construction contractors, and food manufacturers, where standard insurers may apply exclusions or restrictive conditions. Furthermore, when a claim arises, our in-house claims team advocates on your behalf rather than leaving you to navigate the insurer’s process alone.
Get a Public & Products Liability Quote →
Frequently Asked Questions About Public & Products Liability Insurance
Is public liability insurance a legal requirement in the UK?
No — unlike Employers’ Liability Insurance, public liability cover is not compulsory under UK law. However, it is effectively essential for any business that interacts with the public, since the cost of an uninsured third-party injury claim can be catastrophic. Furthermore, most client contracts, trade body memberships, and site access requirements make it a de facto obligation in practice.
What is the difference between public liability and employers’ liability insurance?
Public Liability covers claims made by third parties — members of the public, customers, or visitors — who are injured or suffer property damage as a result of your business activities. Employers’ Liability covers claims made by your own employees who are injured or become ill because of their work. Employers’ Liability is compulsory by law; public liability is not, but both covers are essential for most UK businesses and are often arranged together.
Do I need products liability insurance if I only sell, not manufacture, products?
Yes. Under the Consumer Protection Act 1987, liability for a defective product can fall on any business in the supply chain — including retailers and distributors — if the original manufacturer cannot be identified or is based outside the UK. Consequently, even if you have no involvement in making the product, you could still face a claim. Products liability cover is therefore advisable for any business that supplies physical goods, regardless of whether it manufactures them.
How much public liability cover do I need?
The right limit depends on the size of your business, the nature of your activities, and your contractual obligations. Many standard business policies provide £1 million or £2 million, but these limits are often insufficient for commercial contracts, which commonly require £5 million or £10 million. We review your contracts and client requirements to ensure your limit is commercially adequate and not just technically sufficient.
Does public liability insurance cover damage caused by my employees?
Yes. Public liability policies cover claims arising from your business activities, and that includes the actions of your employees acting in the course of their employment. However, it is important to make sure the policy accurately describes the work your staff actually do. If your employees undertake activities that are not disclosed to the insurer — for example, working at height when the policy was rated for ground-level work only — cover could be prejudiced.
What is not covered by public liability insurance?
Standard public liability policies typically exclude claims arising from deliberate acts, contractual liability that would not exist at common law, professional errors (these require Professional Indemnity Insurance), damage to property in your care or control (which may need a specific extension), and gradual pollution events. Product Recall Insurance is also a separate product and is not included under a standard public liability policy. We check the exclusions carefully and fill gaps with extensions or additional covers where needed.
