By Jad Salman · · All guides
Every plumber has a story about the job that nearly went wrong. A compression fitting that let go overnight. A blowtorch a bit too close to a joist. A customer's kid tripping over a toolbag in the hallway. Most of the time nothing comes of it. When something does, public liability insurance is what stands between one bad afternoon and a bill that could finish the business.
This guide explains what public liability actually covers, how to pick a sensible level of cover, the small print that catches plumbers out, and the other policies you might need alongside it. It's general guidance, not insurance or legal advice. Read your own policy wording and talk to a broker if you're unsure.
What Public Liability Insurance Covers
Public liability (often shortened to PL) pays out if a member of the public, a customer or a third party makes a claim against you for:
- Injury. Someone is hurt because of your work, like a customer slipping on water from a leak you caused, or tripping over your gear.
- Damage to their property. A joint you made fails and floods a ceiling, you crack a tiled floor, or heat from soldering scorches a kitchen unit.
A good policy also covers the legal costs of defending a claim, which can add up even when you've done nothing wrong.
What it usually doesn't cover is the cost of putting your own work right. If a fitting you installed leaks, PL may pay for the ruined ceiling and carpet below, but the cost of going back and redoing the fitting is normally down to you. That's a common surprise, so it's worth reading that part of the wording carefully.
Is It a Legal Requirement?
No. In the UK, public liability insurance isn't required by law for sole traders or limited companies.
In practice, though, it's close to essential for plumbers:
- You work inside people's homes, around water, gas and heat, which is exactly where expensive claims come from
- Letting agents, landlords, builders and commercial clients often won't use you without it
- Many trade bodies and competent person schemes expect members to hold it
- Customers increasingly ask for proof before they book
Our guide on how to set up a plumbing business in the UK puts it simply: don't start trading without public liability.
How Much Cover Do You Need?
Policies are sold with a limit of indemnity, which is the most the insurer will pay for a claim. For UK trades the common levels are £1 million, £2 million, £5 million and £10 million.
There's no single right number, but these questions get you most of the way:
- Who are your customers? If it's mostly domestic repairs and boiler work for homeowners, a lot of sole traders start at £1 million or £2 million. If you do work for builders, housing associations, councils, schools or commercial sites, they'll often tell you the minimum they need, and it's frequently £5 million or more.
- What does your trade scheme or main contractor ask for? Check their membership terms or contract. Your cover has to meet the highest requirement you work to.
- What could realistically go wrong? A flood in a flat that runs through to the floors below, or a fire in a large house, can cost a lot more than a burst pipe in a bungalow.
Get quotes at more than one level so you can see the real difference in price before you decide. If a contract later needs higher cover, most insurers can raise the limit mid-term.
The Small Print That Catches Plumbers Out
Two policies with the same headline limit can behave very differently when you claim. These are the parts of the wording to check before you buy.
Heat Work Conditions
Soldering, brazing and using a blowtorch count as heat work (sometimes called hot works). Many policies attach conditions to it, such as keeping a fire extinguisher to hand, using a heat-resistant mat, clearing combustible material from around the joint, and checking the area for a set time after you finish. Some exclude heat work altogether unless you declare it.
If you break a condition and a fire starts, the insurer may refuse the claim. Make sure you've told them you do heat work, and that you actually follow the conditions on every job.
Your Declared Trade and Type of Work
Insurers price and cover you for the trade you describe. If you've declared "plumbing" but you also do gas work, unvented cylinders, roofing repairs or electrics for showers, check those are included. Work outside your declared trade might not be covered.
Subcontractors and Labourers
If you bring in another plumber on a job, your policy may only cover them if they have their own PL insurance. Ask to see their certificate and keep a copy. If someone works for you directly, you're likely into employers' liability territory, which is covered below.
Excess
The excess is the part of each claim you pay yourself. A low premium sometimes comes with a high excess, especially for property damage or escape of water. Make sure it's an amount you could cover without strain.
Where and How You Work
Some policies limit work at height, below ground, or on certain types of premises. If you do loft tanks, external drainage or commercial jobs, check those limits fit what you do.
Other Insurance Plumbers Commonly Take
Public liability is the base. Depending on how you work, these are the other policies worth knowing about.
Employers' Liability (Legally Required Once You Employ Someone)
This one isn't optional. Under UK law, as soon as you become an employer you must have employers' liability insurance from an authorised insurer, covering at least £5 million. It pays compensation if an employee is injured or becomes ill because of their work for you. That includes apprentices and part-time staff.
GOV.UK says you can be fined £2,500 for every day you aren't properly insured, and up to £1,000 if you don't display your certificate where employees can see it. There are narrow exemptions, so check the GOV.UK employers' liability guidance before relying on one. If you're thinking about taking someone on, our guide to hiring your first member of staff covers the rest of what you'll need.
Tools and Equipment Cover
Your van full of tools is a target. Tools cover pays out if they're stolen or damaged. Read the conditions closely, because many policies only cover theft from a van if it was locked and there are signs of forced entry, and some limit cover overnight unless the van is in a locked garage.
Contract Works
This covers the work itself while it's in progress, such as a half-fitted bathroom damaged by fire or flood before you hand over. It matters more on bigger installs and renovations, and some main contractors will ask for it.
Professional Indemnity
If you give paid advice or design systems, for example specifying a heating system that someone else installs, professional indemnity covers claims that your advice or design was wrong. Many domestic plumbers don't need it, but it's worth asking about if design is part of what you sell.
Personal Accident and Income Protection
If you're self-employed and you break your wrist, the money stops. These policies pay something while you can't work. They don't protect the business against claims, but they protect you, which is what keeps the business going.
How to Buy Without Overpaying or Underinsuring
Premiums vary a lot depending on your turnover, the cover limit, whether you do gas or heat work, how many people you employ and your claims history. That's why a quote a mate got tells you very little about yours. A few habits help:
- Get several quotes. Use a mix of specialist trade insurers and a broker. A broker who works with trades can explain exclusions in plain English and find cover for unusual work.
- Be accurate on the proposal form. Understating your turnover or leaving out gas work might save a little now and cost you the whole claim later.
- Check the insurer is authorised. You can search the FCA register to confirm a firm is authorised to sell insurance.
- Compare the wording, not just the price. Heat work conditions, excess and what counts as your trade matter more than a small saving.
- Review it every year. If you've started doing commercial work, taken on staff or raised your turnover, update your cover before renewal, not after a claim.
Keep Records That Help If You Ever Claim
Insurance works best when you can show what happened. Simple habits make a claim much smoother:
- Take before and after photos of every job, especially joints, valves and anything hidden behind boxing
- Note what you found, what you fitted and any advice you gave the customer
- Keep receipts for parts so you can show what was installed
- Tell your insurer as soon as you know about a possible claim, even if you think it's minor, and don't admit liability on the spot
Good records also help with the jobs where nothing goes wrong, because a customer who disputes a bill is much easier to deal with when you've got the photos and notes. It's the same reason a written record of each call is useful. If a customer says they asked for one thing on the phone and you remember another, a booking text or call summary settles it. That's part of what Slotby does for the calls you can't take while you're on a job.
A Simple Checklist
Before your next renewal, or before you start trading, run through this:
- Public liability at a level that meets your highest customer or contract requirement
- Heat work declared, and you know the conditions
- Gas work, unvented cylinders and any other specialist work included
- Employers' liability in place if you employ anyone, with the certificate on display
- Tools cover that matches how and where your van is kept overnight
- An excess you could pay tomorrow
- A copy of your certificate on your phone, ready to send when a customer or agent asks
Insurance isn't exciting, but it's one of the few things in the business that can save it outright. Spend an hour getting it right, then get back to the work.
If you're setting up properly and want the phone side covered too, see how Slotby works for plumbers, check our pricing, or get in touch. We'll get back to you.