Liability is, at present, entirely a matter for the two individuals who are making the trade. The LETSystem information services only acts as a kind of "Yellow Pages" and does not get involved. The Registry administration does not involved either. Many LETSystem exchanges are of a social rather than a business nature, so business legislation may not apply (e.g. Sale of Goods, Trading Standards etc ).

In the case of work-exchange organisations like WWOOF, farms are business premises and so need the insurance. But what if I'm just helping my neighbour with the decorating and the ladder breaks? Many household insurance policies offer personal (non-business) liability insurance, which would be appropriate for most LETSystem trades.

For the more commercial type of transactions, most traders and businesses will have public liability anyway. Again, is the key point whether you are supplying something in connection with your normal trade or profession (a business transaction, public liability, taxable etc) or whether you are doing social favours or hobbies (social transaction, personal liability, not taxable)?

Developing the point, a LETSystem exchange can be considered as a contract between two individuals. Contract law will apply. Should you want to apply it, of course.