When you’re starting out as a freelancer, insurance is rarely at the top of your priority list. Finding clients, building your portfolio and getting paid usually take centre stage. But as your business grows, protecting yourself against unexpected risks becomes just as important.
One of the most common types of business insurance is public liability insurance. While it isn’t legally required for most freelancers, it can save you from significant financial costs if something goes wrong.
What is Public Liability Insurance?
Public liability insurance protects you if someone is injured or their property is damaged because of your work or business activities.
If a claim is made against you, the policy can help cover:
- Legal defence costs
- Compensation payments
- Medical expenses where applicable
- Other associated legal fees
Without insurance, these costs would usually have to be paid by you.
Who Needs Public Liability Insurance?
You should strongly consider public liability insurance if you:
- Meet clients face-to-face
- Visit client offices or work on-site
- Have clients visit your workspace
- Attend networking events, exhibitions or markets
- Work in public spaces or shared offices
- Deliver physical services or products
Many clients, particularly larger organisations and public sector bodies, require freelancers to have public liability insurance before awarding contracts.
Examples of When It Could Help
Public liability insurance covers accidents that can happen in the course of everyday business.
For example:
- A client trips over your laptop charger during a meeting and suffers an injury.
- You accidentally knock over an expensive monitor while working in a client’s office.
- Equipment you’re using damages part of a client’s property.
- A visitor is injured while attending one of your workshops or events.
These situations are uncommon, but they can happen. Even a relatively small claim could cost thousands of pounds in legal fees and compensation.
Who Might Not Need It?
If you work entirely from home, provide digital services remotely and never meet clients in person, your need for public liability insurance may be lower.
For example, many freelance writers, software developers or virtual assistants working exclusively online may decide the risk doesn’t justify the cost.
However, if your circumstances change—even occasionally meeting clients or attending events - it’s worth reviewing your cover.
How Much Cover Do Freelancers Need?
Policies commonly provide between £1 million and £10 million of cover.
The amount you need often depends on:
- The type of work you do
- Your clients’ contractual requirements
- Whether you work with the public
- Industry expectations
Some organisations won’t work with freelancers carrying less than £2 million or £5 million of cover.
Public Liability vs Professional Indemnity Insurance
These two types of insurance are often confused.
Public Liability Insurance protects you if someone is injured or property is damaged because of your business activities.
Professional Indemnity Insurance protects you if a client claims your professional advice, work or service caused them financial loss.
Many freelancers benefit from having both, particularly consultants, designers, marketers, coaches, developers and other professional service providers.
The Bottom Line
Public liability insurance isn’t compulsory for most freelancers, but it’s often a sensible investment. One unexpected accident could lead to legal costs far greater than the annual cost of a policy.
If you work with clients in person, attend events or deliver services on-site, public liability insurance provides valuable financial protection and demonstrates professionalism to potential clients.
Like any business expense, think of it as protecting the business you’ve worked hard to build - not just ticking a box.
