Insurance terminology can be confusing, especially when you are trying to get a cleaning business off the ground. Two terms you will hear constantly are public liability and employers' liability. They sound similar, but they cover completely different risks.
Public liability (PL)
Who it protects: your clients and members of the public.
What it covers: claims if someone other than you or your staff is injured, or their property is damaged, because of your business activities.
- A client trips over a trailing vacuum cord and breaks their arm: public liability covers their compensation claim.
- You knock over an expensive sculpture while dusting: public liability covers the cost of replacing it.
Is it compulsory? Not legally, but it is practically essential. Many commercial clients will not work with you without it. Read more about public liability insurance for cleaners.
Employers' liability (EL)
Who it protects: your staff, including employees, temporary workers and, often, labour-only subcontractors.
What it covers: claims if an employee is injured or becomes ill because of their work for you.
- An employee develops a respiratory problem from working with harsh chemicals without proper PPE, or injures their back lifting heavy equipment: employers' liability covers their compensation claim.
Is it compulsory? Yes, for most businesses. Under the Employers' Liability (Compulsory Insurance) Act 1969, if you employ anyone, even on a casual basis, you usually need at least £5 million of cover. The HSE can fine businesses up to £2,500 for every day they are not properly insured. There are limited exemptions, for example some family businesses. See our employers' liability page for details.
Summary
| Insurance type | Protects | Legal requirement? |
|---|---|---|
| Public liability | Clients and the public | No, but strongly recommended |
| Employers' liability | Your staff | Yes, for most businesses with employees |
If you are growing your team, make sure your cover includes both. Request a quote for public and employers' liability and we will send you a short questionnaire about your business.