The short version
- Public liability is generally voluntary for sole traders.
- Sole traders are personally liable for business debts.
- Taking on staff can make employers' liability compulsory.
If you work for yourself, you are probably asking whether this is one more bill you can skip. Legally, you often can. Whether you should is another matter.
What the law says
HSE describes public liability as generally voluntary.2 So no inspector will fine you just for not having it.
Why sole traders are exposed
GOV.UK is blunt on this. Sole traders have unlimited liability and are personally responsible for all the debts of the business.1 There is no legal wall between the business and you.
If a court orders you to pay for damage or injury, your savings and other assets may be at risk. That is the real reason to buy this cover.
When you will need it anyway
- A main contractor asks for proof before you start.
- A commercial customer makes it a condition of the job.
- A trade body or scheme requires it for membership.
- A customer simply asks to see your certificate.
Watch out when you grow
Employers' liability becomes a legal issue the moment you take someone on. Even a labourer paid by the day can count. Our subcontractor guide explains the test.
Common questions
Can I work without public liability insurance?
Generally yes, unless a contract or trade body requires it. You would then pay any claim yourself.
Do sole traders need employers' liability?
Not if you work alone. Once you employ someone, it is usually compulsory.
Sources
- Set up as a sole trader, GOV.UK. Accessed 11 November 2026.
- Employers' Liability (Compulsory Insurance) Act 1969: a brief guide for employers, Health and Safety Executive. Accessed 11 November 2026.
General information only. This is not legal, insurance or financial advice. Your own policy wording decides what is covered.