Cover comparison · 2026
Business Public Liability vs Employer's Liability Insurance
Business Public Liability and Employer's Liability Insurance are often confused because they sit close together — but they protect against different things. This side-by-side shows exactly what each covers, what it excludes, the typical UK cost, and how to decide which one (or both) you actually need.
At a glance
Business Public Liability
Public liability insurance protects your business against claims from members of the public for injury or property damage caused by your business activities.
Typical UK premium: £80–£800/yr
Available in: United Kingdom, Ireland
Employer's Liability Insurance
Legally mandatory in the UK for any business with employees. Covers claims from employees for work-related illness or injury.
Typical UK premium: £80–£600/yr
Available in: United Kingdom
What each policy covers
| Business Public Liability | Employer's Liability Insurance |
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What each policy excludes
| Business Public Liability | Employer's Liability Insurance |
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Choose Business Public Liability if…
- You need to protect against: third-party bodily injury claims.
- You need to protect against: third-party property damage claims.
- You need to protect against: legal defence costs.
- Your budget for this risk is around £80–£800/yr.
Choose Employer's Liability Insurance if…
- You need to protect against: employee injury claims.
- You need to protect against: occupational disease claims.
- You need to protect against: legal defence costs.
- Your budget for this risk is around £80–£600/yr.
Frequently asked questions
What is the difference between Business Public Liability and Employer's Liability Insurance?
Business Public Liability: Public liability insurance protects your business against claims from members of the public for injury or property damage caused by your business activities. Employer's Liability Insurance: Legally mandatory in the UK for any business with employees. Covers claims from employees for work-related illness or injury. They protect against different events, so many people hold one, the other, or both depending on their circumstances.
Is Business Public Liability or Employer's Liability Insurance more expensive?
Typical UK annual premiums run £80–£800/yr for Business Public Liability and £80–£600/yr for Employer's Liability Insurance. Your actual price depends on your circumstances and chosen cover level — always get a live quote before deciding.
Do I need both Business Public Liability and Employer's Liability Insurance?
Not always. Because business public liability and employer's liability insurance cover different risks, holding both gives the broadest protection, but many people only need one. Compare what each covers below and pick the cover that matches your actual exposure.
Do I need public liability insurance as a sole trader?
Public liability insurance is not legally required for sole traders in the UK, but many clients and venues require proof of cover before allowing you to work on-site. Cover from £80/year is inexpensive relative to the risk.
Is employer's liability insurance mandatory in the UK?
Yes — the Employers' Liability (Compulsory Insurance) Act 1969 requires all UK businesses with one or more employees to hold at least £5 million of employer's liability cover. The fine for non-compliance is up to £2,500 per day.
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GeraSure is a comparison and referral service. Insurance products are provided by FCA-authorised or equivalent regulated insurers in each jurisdiction. GeraSure does not underwrite insurance policies and does not provide financial advice. Always read the policy wording before purchasing.