Do I need public liability as well as professional indemnity?

Reviewed by Apex Insurance Brokers · Last reviewed 2026-08-05

The simple distinction

Professional indemnity and public liability answer two different questions. PI asks: "Did something go wrong with the professional service I delivered?" Public liability asks: "Did I, or my business, physically hurt someone or damage their property?"

A financial adviser who recommends an unsuitable pension faces a PI claim — the loss is financial and flows from advice. If that same adviser knocks a laptop off a client's desk during a home visit, or a visitor trips over a trailing cable at their office, that is a public liability matter. The harm is physical, not professional. One policy will not respond to both scenarios, which is why the two sit side by side for so many firms.

What professional indemnity actually covers

PI is a liability cover for people who are paid for their skill, knowledge or advice. Broadly, it responds when a client alleges they have suffered a financial loss because of something you did (or failed to do) in your professional capacity. Typical triggers include:

• Professional negligence — a mistake, oversight or sub-standard piece of work.
• Breach of professional duty — falling short of the standard expected of a competent practitioner.
• Errors and omissions in reports, designs, calculations or advice.
• Defamation, or breach of confidentiality, depending on the wording.
• Loss of documents or data entrusted to you.

Crucially, PI generally covers your defence costs as well as any damages or settlement — and legal costs alone can be substantial even when a claim ultimately fails. Most PI policies are written on a claims-made basis, meaning the policy that responds is the one in force when the claim is made against you, not the one in force when you did the work. That is why continuity of cover and run-off arrangements matter so much for professionals.

For many, PI is not optional. Regulators and professional bodies frequently mandate it: the Solicitors Regulation Authority, the Royal Institution of Chartered Surveyors, the Architects Registration Board and the FCA (for regulated financial firms) all set minimum requirements, and many client contracts specify a level of PI before work can begin.

What public liability covers

Public liability is not about the quality of your professional work at all. It protects your business against claims from third parties — clients, visitors, members of the public — for:

• Bodily injury to someone who is not your employee.
• Damage to third-party property.

The classic examples are physical: a client trips in your reception, a surveyor dislodges a tile that injures a passer-by, a consultant spills coffee over a client's server, or a contractor damages a wall during a site visit. If that person makes a claim, PL covers the compensation and the legal costs of defending it. Where your work takes you onto other people's premises, or brings other people onto yours, PL is usually the cover that responds to accidents.

Note that public liability is distinct from employers' liability, which covers injury to your own staff. Employers' liability is a legal requirement under the Employers' Liability (Compulsory Insurance) Act 1969 for most businesses that employ anyone, with only limited exemptions. If you have employees, that is a separate obligation you should not overlook.

PI vs public liability, side by side

So who actually needs both?

The honest answer is: it depends on how you work, not just what you do. Ask yourself whether your professional activity ever puts you in physical contact with clients, their property or the public. If it does, both covers usually earn their place.

Often need both: architects, surveyors, engineers, project managers, IT consultants who work on client sites, physiotherapists, tradespeople who also design or specify, and any consultant who regularly attends client premises. The advice creates PI exposure; being physically present creates PL exposure.

May need only PI: a professional who works entirely remotely, never meets clients in person and never receives visitors — a copywriter or software developer working from home with no client footfall, for instance — may have little public liability exposure. Even then, occasional client meetings can reintroduce the risk, so it is worth reviewing honestly rather than assuming.

If you would like a straightforward read on your own position, you can tell us what you do and we will map the covers to it.

How the two fit together

Because PI and PL respond to genuinely different events, holding both is not doubling up — it is closing a gap. A single client visit could, in theory, generate a PI claim (your advice was wrong) and a PL claim (you damaged their premises) from the same afternoon, and each policy would handle its own part. Many brokers arrange them together, sometimes alongside employers' liability, so that limits, renewal dates and the duty of disclosure are managed as one package rather than three loose ends.

On disclosure: under the Insurance Act 2015, commercial policyholders have a duty to make a fair presentation of the risk to the insurer. In practice that means telling your insurer everything you know, or ought to know, that would influence their decision — the nature of your work, site attendance, subcontractors, past claims. Getting this right at the outset protects your ability to claim later, and it is one of the practical reasons professionals use a broker rather than a bare online form.

Choosing a limit

Limits are set per policy and should reflect your real exposure — the value of the contracts you work on, what your clients and regulators require, and the worst realistic claim you could face. PI limits are commonly discussed in bands such as £1m, £2m or £5m; public liability limits are often set at a similar level or higher where you work on larger sites. There is no single correct figure. Contractual requirements from your clients, and any minimum set by your professional body, are usually the starting point, and a broker can help you pressure-test whether the figure is genuinely adequate rather than simply the cheapest that meets the wording.

Common questions

Is public liability a legal requirement?
No. Public liability is not compulsory under UK law for most businesses, unlike employers' liability, which is required by the Employers' Liability (Compulsory Insurance) Act 1969 if you have staff. That said, many clients, landlords and public-sector contracts insist on PL before they will engage you, so in practice it is often unavoidable.

Can I get PI and public liability on one policy?
Frequently, yes. Many insurers offer combined or packaged commercial covers, and brokers often arrange PI, PL and employers' liability together so your limits, renewal dates and disclosure are handled in one place. The covers remain distinct — each responds to its own type of claim — but administering them as a bundle is common and convenient.

My professional body only mandates PI. Do I still need PL?
Possibly. A mandate for PI reflects your advice risk; it says nothing about the physical risk of injury or property damage. If you visit clients or receive them, that exposure exists regardless of what your regulator requires. Meeting the minimum for one cover does not remove the need to consider the other.

Not sure which applies to you? Start a quote and we'll talk it through.

Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority (FRN 724952). This guide is general information, not advice on a specific policy or a substitute for reading your policy wording.