Who asks for public liability cover: leases, clients and events

Public liability cover is usually asked for by a landlord in a lease, a larger client in a contract, or an organiser or authority in a permit or event rule. The law does not require it of most businesses, according to the business hub, so the document that asks is the thing to read.

Who asks for public liability cover?

The business hub describes the usual sources: "landlords and shopping centres usually require it in the lease, and larger clients require it in their contracts before a contractor is allowed on site." It adds that a permit can also make it a condition, and that it is not compulsory by law for most businesses.

So the requirement usually sits in one of these:

• A lease. For a shop, restaurant, salon or office.
• A client or tender contract. Typically for contractors and tradespeople who will work on someone else's site.
• A permit or an event rule. For events, see when an event needs liability insurance.
• A franchise or supplier agreement. If you operate under one.

If you cannot identify the document, ask the person asking you for cover to point to the clause.

What does the clause usually say?

Read the clause for the following. Each one changes what you ask the provider for.

1. The kind of cover. "Public liability" is not the same as "professional indemnity". See professional liability or public liability.
2. The limit. A figure, if any, and whether it applies per claim or in total.
3. The period. Whether cover must run for the whole lease or contract, and whether it must continue after the work ends.
4. Named parties. Whether the landlord, client or another party must be noted on the policy.
5. Proof. What they want to see, and when.
6. Consequences. What happens if you do not provide it, such as suspension of work or a breach of the lease.

Copy the clause word for word to the licensed provider who calls you. The provider can then say what cover answers it, and what they cannot confirm.

What counts as proof?

Usually the policy schedule or a certificate issued by the provider that shows who is insured, the cover, the limit and the period. The contract may name the document. If it does not, ask.

Do not give proof of a policy that has not started. Cover begins when the provider confirms it. Ask for written confirmation of the start date, and tell the other party the true position if there is a gap.

How do I keep cover in force?

Landlords and clients tend to care about continuity, because a lapse leaves them with no cover for the period. The Policyholder Protection Rules (Short-term Insurance), 2017 give some protection, but they are not a substitute for diarising your renewal date.

• Grace period. Rule 15.1 requires a policy to contain a period of grace for paying premiums of not less than 15 days after the due date, and for a monthly policy that applies from the second month. Rule 7.1(e) makes void any term that lets an insurer repudiate a claim because a premium was not paid on the due date, where payment was made during the grace period.
• Notice of termination. Rule 19.2.1 says that where the insurer intends to terminate a policy for reasons other than non-payment, a material change in the risk or a legal requirement for immediate termination, it must give at least 31 days' written notice despite the policy terms. Rule 19.2.2 keeps the insurer liable for the shorter of 31 days after it receives proof that you were told, or the period until it receives proof you have taken a policy for similar risks.
• Your own renewal date. The business hub notes that the renewal date is the natural time to review. Put it in a diary and ask for renewal documents early.

If you are moving providers, arrange the new policy before the old one ends, and ask the new provider for the start date in writing.

Can I cancel after I buy?

For a new policy with a term longer than 31 days, Rule 4.2 gives a policyholder 14 days from receiving the policy contract to cancel, if no benefit has been paid or claimed and the insured event has not occurred. Rule 4.3 requires a refund less the cost of any risk cover actually enjoyed. If a lease or contract requires continuous cover, do not cancel before the replacement has started.

What if I am a mobile or home-based business?

The hub lists mobile businesses that operate at clients' homes among those public liability suits. A requirement then usually comes from the client rather than a lease, and may be set out in a quotation, a service agreement or a supplier form. The same reading rules apply: find the clause, copy it, and give it to the provider. If a client asks verbally, ask for the requirement in writing so that you and the provider are working from the same words.

How can I prepare before I am asked?

A short checklist helps when a landlord or client wants an answer quickly, because you will not be hunting for documents on the day.

• Keep the current schedule and any certificate where you can reach them.
• Diary your renewal date and the date any proof of cover expires.
• Keep a copy of every lease and contract clause that mentions insurance.
• Tell the provider in writing when your premises, activities or staff change, and ask for written confirmation.
• Ask the provider how long a certificate takes to issue, so you can plan around deadlines.

None of this is a legal duty. It is a way to avoid arguments about what was agreed and when.

What about events?

Hiring a venue or running an event is a different case. Section 25 of the Safety at Sports and Recreational Events Act 2 of 2010 says that a person referred to in section 4(1) must ensure that public liability insurance, as prescribed, is in place for an event. Section 4(1) refers to a controlling body, an event organiser, or a stadium or venue owner. Whether your function is an event within the Act is a question for the venue, the organiser and the authorities, and is covered in when an event needs liability insurance.

How does Olvian fit in?

Olvian is a lead-referral service. You ask once, and the request goes to licensed providers who pay Olvian a fee and call you back. Olvian is not an insurer, broker or adviser. It does not decide what a lease or contract needs, or what limit to hold. The provider who calls, and the other party to your contract, settle that.

Sources

Checked on 31 October 2026. This guide is information, not advice.

• Policyholder Protection Rules (Short-term Insurance), 2017, Rule 4: Cooling-off rights
• Rule 7: Void provisions
• Rule 15: Periods of grace
• Rule 19: Termination of policies
• Safety at Sports and Recreational Events Act 2 of 2010, section 25
• Safety at Sports and Recreational Events Act 2 of 2010, section 4