Public Liability Insurance covers damage and injury to third parties. It will cover the defence costs and damages if someone brings a claim against you.
For example, if you were working on a client’s site and someone tripped over a wire that you had left, they could sue you if they were injured. The policy would cover the legal costs and the damages if you are found liable. Likewise, if you damaged some of your client’s equipment it would also be covered.
Whilst the number claims on Public Liability policies are obviously higher for businesses like shops and pubs, it is still a good idea to hold the insurance regardless of the type of work you are carrying out.
Most agencies and end clients demand that you hold cover up to £1m, although this can sometimes be £2m or even £5m.
Public Liability premiums for white-collar contractors are generally very low. Qdos Contractor sell a £1m policy for IT contractors for just £48.34 per annum. It can be combined with Employers Liability for £92.23 per annum.