Personal Liability Cover Versus Public Liability Cover

The answer to the difference between personal and public liability cover may well account for the fact that many GUEST HOUSES have the incorrect cover in place.

What is personal liability cover?

Many normal household insurance policies have personal liability cover within them. Personal liability cover provides for the legal fees and damages claimed against you (in your personal capacity) as a result of something that happened on your residential property – for example a neighbor slipping over.

What is public liability cover?

Any small business, self employed trader, a company director or an employee could all potentially be blamed for injury to a third party ie, a member of the public, or damage to property. Public liability covers you against both the legal fees and resulting claims against you (in your commercial capacity) whereby a breach of duty has occurred. In other words, where the incident can be blamed on the guest house.

Personal liability does not cover a commercial enterprise.

In the case of a guest house, whether large or small, any claim would be refuted under personal liability for non disclosure and incorrect cover. Therefore all legal fees and subsequent damages must be paid from you own finances.


There is always someone out there happy to sue you; many lawyers now act on successful fees only. Guest houses can have unforeseen accidents and the consequences of fighting and losing a court battle over liability could be devastating. For some real examples click here – the bottom line is Guest Houses need public liability cover.

Incompass would be delighted to discuss your insurance needs and provide you with a free quotation based upon your specific circumstances.

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