Public liability insurance helps protect your business if something goes wrong while you are working with customers or the public. If someone is injured or their property is damaged and they hold you responsible, this cover deals with the financial fallout.

It is useful whether you work in people’s homes, run a shop, organise events or operate in busy public spaces. Accidents can happen anywhere, even when you are careful. Public liability insurance lets you focus on the job without worrying that one mistake could drain your bank balance.

Many clients also expect you to have public liability insurance before they will hire you. It shows that you take your responsibilities seriously and are prepared if the unexpected happens.

Public liability insurance covers a lot, but it’s not designed for every type of claim. Most policies won’t pay out for things like:

• Injuries to your own staff, including temporary workers, students or anyone on a work placement: you need employers’ liability insurance for that.

• Damage to your own property or equipment.

• Pre-existing issues (damage or injury arising from issues that started before the policy is issued).

• Intentional damage or criminal acts.

• Incidents involving your business vehicles (these are usually covered by motor insurance).

Always check the fine print, as exclusions can differ between insurers.

Public liability insurance is worth considering for almost any business that comes into contact with customers or members of the public, even if it’s only now and again. If you work in people’s homes, run a shop, trade at fairs, or take part in community events, this cover can protect you if something goes wrong.

In many cases, you may find that clients, councils or event organisers expect you to have it before they’ll agree to hire or book you. For some businesses, it can make the difference between securing work and missing out.

It’s not just for big companies or SMEs. Even sole traders and freelancers who want peace of mind when dealing with customers or the public may decide it makes sense to have this cover in place.