What is Public Liability Insurance?

Public liability insurance is the most fundamental insurance policy for any children's activity business. It covers the cost of legal claims if a third party (such as a child participant or a parent) suffers an injury or property damage as a result of your business activities. Most venue hire agreements, governing bodies, and franchise arrangements require you to hold a minimum of two million pounds in public liability cover, though five million or ten million is increasingly standard.

The policy typically covers legal defence costs, compensation payouts, and medical expenses arising from incidents at your venues or during your sessions. It does not cover injuries to your own employees (that requires employers' liability insurance, which is a legal requirement if you have staff) or professional negligence (for which you may need professional indemnity insurance).

When selecting a policy, ensure it specifically covers working with children, covers all the activities you provide (some policies exclude trampolining, water-based activities, or certain sports), and covers any equipment you own or hire. Specialist brokers such as those working with sports coaches, dance teachers, or swim schools often provide more suitable and cost-effective cover than general business insurers. Keep your certificate of insurance accessible — venues and parents may ask to see it.