3 min readContents
Public liability, employers' liability and professional indemnity are three of the most common business insurance terms, but they protect against different problems. Mixing them up can leave a business underinsured or paying for cover that does not match the actual risk.
The simplest way to think about it is this: public liability relates to third-party injury or property damage, employers' liability relates to employees, and professional indemnity relates to advice, service or professional mistakes that cause a client loss.
Compare the right cover
Tell us what your business does and which covers you want to compare.
Before you start
Quote readiness checklist
- Business type
- Cover needed
- Turnover
- Employee count
- Claims history
How we’re paidCostQuote is free to use. If you choose to continue with an insurance partner, we may receive a referral fee or commission. This does not change the premium you pay.
Public liability insurance
Public liability can help protect a business if a third party claims they were injured or their property was damaged because of the business activity. It is relevant for trades, shops, contractors, events, hospitality, cleaning, facilities, consultants visiting client sites and many customer-facing businesses.
Examples might include a customer slipping in a shop, a contractor damaging a client's property or a member of the public being injured near work being carried out. Policy details and exclusions matter, so the business activity must be described accurately.
Employers' liability insurance
Employers' liability is required for most businesses that employ staff. It helps cover claims from employees who are injured or become ill because of their work. This can include full-time, part-time, temporary or casual workers depending on the circumstances.
Because this can be a legal requirement, do not guess. If you employ anyone, ask an authorised insurance partner what applies to your business. Some exemptions exist, but assuming you are exempt without checking is risky.
Professional indemnity insurance
Professional indemnity is designed for businesses that provide advice, consultancy, design, specification, professional services or technical work. It can help if a client claims that your mistake, negligence or poor advice caused financial loss.
This is relevant for consultants, designers, marketers, architects, engineers, accountants, IT providers and many service businesses. Some contracts require a minimum level of professional indemnity cover before work can start.
Compare it in two minutes — no obligation.
Compare business insurance quotesHow much cover do you need?
Cover limits depend on the work you do, client requirements, contract values and the scale of potential claims. A local sole trader and a national contractor may need very different limits. For professional services, client contracts often specify a minimum indemnity level. For public liability, larger clients or public sector contracts may also specify minimum levels.
When comparing quotes, do not only look at the monthly price. Check the limit of indemnity, excess, exclusions, retroactive dates, territorial limits and whether subcontractors or temporary workers are covered.
Straight answers
FAQs
It depends on your business. Public liability, employers' liability and professional indemnity cover different risks.
Most employers need it, even with a small team. Check with an authorised insurance partner.
Usually no. Bad advice or professional mistakes are normally professional indemnity territory.
Yes. Contracts often require minimum levels of public liability or professional indemnity cover.
No. We help route your enquiry. The partner or broker discusses suitable policy options.
No nonsense comparison
The CostQuote promise
- No fake countdowns
- No mystery data selling
- No guaranteed savings claims
- No guaranteed finance approval claims
- No hidden broker waffle
- A clear explanation of who may contact you
Keep reading
More SME comparison guides
Not ready yet?
Get a switch reminder.
Renewal months away? We’ll nudge you when it’s worth comparing — nothing else.