There's a number of reasons you might want to consider it, whether you're a one-man-band like a mobile hair-dresser or beautician, or if you have a slightly bigger business with a few employees, like a guesthouse or a pub/restaurant. It's designed to cover you and your business against things like:
If a mobile-hairdresser gives a client a chemical burn by accident, and the client takes out a lawsuit against the hairdresser (public liability insurance).
A waiter who works at a restaurant slipping on a wet floor where there was no sign, and as a result breaking their wrist (employers liability insurance).
There are countless scenarios where you might want this cover, each being different depending on the business you're in, and each requiring a different level of cover.
Did you know? According to the Association of British Insurers (ABI) in 2012, insurers paid out an average of £7.0 million a day in liability claims of which, £2.7 million is employers' liability.