As a taxi driver, you interact with passengers on a daily basis. But have you ever considered what might happen if a member of the public made a claim against you?
While not legally required, having Public Liability Insurance is highly recommended for taxi drivers who want to safeguard their business and financial stability.
If you’re involved in an accident and a passenger gets injured or their property gets damaged, you could be held to blame. That’s where public liability insurance comes in. It offers you the protection you need while out on the road.
In this blog post, we'll discuss whether taxi drivers need public liability insurance, and how it can benefit you in your day-to-day work.
Is public liability included in private hire insurance?
Usually not. Across the UK market, public liability is sold as an optional add-on to a private hire policy rather than built into it. That's the detail most quotes skip over, so it's worth checking line by line before you buy.
Zego works differently. Public liability cover is included as standard on every Zego private hire policy, so there's no separate add-on to buy and nothing extra to remember.
Three things to confirm with any insurer:
- Whether public liability is included as standard or costs extra
- The indemnity limit, and whether it meets your licensing authority's conditions
- Whether you're covered while loading and unloading, not only while driving
What is public liability insurance?
Public liability insurance is a type of coverage designed to protect businesses and professionals who interact with the public on a regular basis. It safeguards you financially in case a claim is made against you for things like personal injury, loss or damage to property, or even the death of another person.
Most insurers treat public liability as an optional extra on a taxi policy, so it pays to read what you're actually buying. At Zego, it comes as standard on every private hire policy.
What levels of cover are there?
Public liability cover starts at around £1 million and rises depending on how much protection you want. Most policies sit somewhere in this range:
- £1 million
- £2 million
- £5 million
- £10 million or more
For private hire work, £5 million is the level you'll see most often. Some councils also set a minimum as part of their licence conditions. Check your own licensing authority before you settle on a figure, because the requirement varies from one area to the next.
Public liability versus passenger liability
These two get mixed up constantly, and the difference matters. Passenger liability is already part of your hire and reward motor insurance. It covers the people in your car while you're carrying them.
Public liability picks up where that stops. It covers members of the public outside the vehicle, and your passengers in the moments that aren't really about driving at all. Think of someone tripping over a suitcase you've just lifted out of the boot.
So your motor policy handles passengers on the move. Public liability handles what happens either side of the journey.
Types of businesses that benefit from public liability insurance
- Retailers
- Restaurants and cafes
- Tradespeople (plumbers, electricians, etc.)
- Taxi drivers and private hire drivers
- Event organisers
- Fitness instructors
- Freelance consultants
What does public liability insurance cover for taxi drivers?
A public liability insurance policy will usually cover you for:
- Personal injury to another person or member of the public (known as a ‘third party’)
- Loss or damage to third-party property
- Death of a third party
- Legal expenses associated with defending a claim
Things that can affect the cost of public liability insurance
Costs can vary between insurers, but some of the main factors that can affect your premium include:
- Type of business
- Size of business
- Location
- Claim history
- Coverage level chosen
Do taxi drivers need public liability insurance?
As a private hire taxi driver, you’re responsible for your passengers' safety and wellbeing, as well as their belongings. Public liability insurance provides you with peace of mind, allowing you to focus on building your business and providing excellent service to your passengers.
While not always legally required, having public liability insurance is highly recommended for taxi drivers who want to safeguard their business and protect their finances.
Public liability included as standard with Zego
We know the cover you need depends on the work you actually do. That's why every Zego private hire policy includes public liability insurance as standard, with no add-on to buy and nothing extra to remember. It sits alongside your hire and reward cover from the day you're on the road.
If you're looking for an all-in-one private hire taxi insurance policy, why not get a quote now? It only takes a minute, and we only need a few details to give you a personalised price.
Last Updated: 03.08.2026
Frequently asked questions
Do private hire drivers need public liability insurance?
While it’s not a legal requirement, private hire drivers should consider having public liability insurance in addition to their hire and reward motor insurance. It protects them against unexpected claims, such as a passenger slipping while exiting the vehicle, or a pedestrian tripping over suitcases being loaded into the boot.
Are private hire drivers self-employed?
Many private hire drivers choose to be self-employed, operating as sole traders. This allows them to set their own working hours, keep all profits, and have more control over their business.
What is the minimum public liability insurance in the UK?
While there's no legal minimum, some clients, especially government and local authorities, may require their suppliers to have at least £5 million of public liability cover.
Do all private hire policies include public liability?
It depends entirely on the insurer. Most sell it as an optional add-on, which means you could hold a perfectly valid hire and reward policy with no public liability at all. Every Zego private hire policy includes it as standard.
Does my council require public liability cover for a private hire licence?
Some licensing authorities set public liability conditions for private hire vehicle licences, and others leave it to the driver. The requirement isn't national, so check the conditions your own council publishes before you renew.
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