See the 5 most common types of market stall insurance to protect you and your business
Market stalls are a relatively inexpensive business to start and test your products and are good either as a full-time business or a side hustle alongside another job.
But before you start serving the public and market and event organisers let you into their markets you have to make sure you have the right insurance in place.
So what insurance do you actually need for a market stall?
The types of insurance you need for a market stall include public and product liability insurance; employers liability insurance; contents and stock insurance; and business interruption insurance.
However, only one of these insurance products is a legal requirement in the UK and the type of insurance you need will depend on the size and structure of your market stall business.
Below are the 5 most common types of market stall insurance explained in more detail.
Public liability insurance
The most common type of market stall insurance is public liability insurance.
This will cover you for any accident to your customers, members of the public, or property as a result of your business operations.
Example:
- If a sign attached to your gazebo were to fall and hit someone or damage another stallholder’s property then you would be covered. (this is actually quite a common occurrence)
Believe it or not, public liability insurance is actually not a legal requirement in the UK.
However, most if not all event and market stall organizers will require public liability insurance from stallholders if you want to trade at their event.
Simply Business is one of the UK’s best insurance brokers, which specializes in working with small businesses and the self-employed. As such they work with a lot of the main insurers so can offer very competitive Public Liability insurance quotes.
You can get a quote from Simply Business here
Employer liability insurance
Employer liability insurance is needed if you employ paid staff as part of your business and covers you against legal fees and medical expenses from claims made by an employee as a result of injury or illness.
Example:
- If an employee were to get a back injury as a result of moving heavy equipment or setting up a gazebo.
Unlike public liability, Employer liability insurance is a legal requirement in the UK so this is an important one if you employ people.
However, there are a few exceptions to this legal requirement that are worth noting.
Exceptions:
- If it is a family-run business and not a limited company. Family members are defined for example as husbands, wives, civil partners, fathers, mothers, grandfathers, grandmothers, siblings etc.
- If you employ someone who is registered as a self-employed contractor and is employed as such on that basis.
Again Simply Business is one of the leading insurance brokers for this type of insurance for small businesses and the self-employed.
Related articles:
Product liability insurance
Product liability insurance covers you against any injury or sickness from a customer as a result of the consumption of your product.
Example:
- If a customer gets food poisoning from your food or a piece or you buy faulty goods from a manufacturer and as a result, a sharp piece breaks off and injures a customer.
Product liability insurance would, therefore, cover your market stall business against any legal expenses or compensation claims.
Again product liability insurance is not a legal requirement in the UK, but some manufacturers, suppliers, or distributors you work with may require it.
Contents & stock insurance
Contents and stock insurance covers equipment (tills, tables electrical devices, gazebos, etc.), raw materials (foodstuffs, etc.), and stock against damage or theft at your market stall, home, or shop.
This type of insurance is important, especially for market stallholders as you will often be moving stock around different locations and trading in different weather conditions.
Example:
- Trading on a very rainy day and your product gets wet (this has happened to me a few times)
- Your van is broken into and stock is stolen (I know stallholders this has happened to)
Contents and stock insurance is not a legal requirement but is a very important one as market stallholders are often exposed to more types of risks than a brick-and-mortar shop.
Business interruption insurance
Business interruption insurance covers loss of turnover for your business as a result of fire, flood, or theft and if an employee becomes injured and unable to work.
This type of insurance is an extension of contents and stock insurance and covers the loss of turnover period between the damage or theft from your business up to when your market stall business is up and running.
Example:
- Your van along with the gazebo, equipment, and stock has been stolen and as a result, you are unable to trade for several months until the van and equipment are replaced.
Related articles:
- What Insurance Does A Food Truck Need In The UK?
- What Food Truck Catering License Do I Need For The UK?
Key takeaway
Surprisingly Employer’s Liability insurance is the only legally required insurance for market stallholders in the UK.
However, insurance for market stallholders is there for a reason.
Not only does it give you peace of mind but can give you protection when you most need it and save you a small fortune in the event of any compensation claims.
Having said that you may not need all the different types of insurance, especially when first starting.
You are unlikely to have paid employees and it could even be weekend business which means employers’ liability and business interruption may not apply.
Author
Gavin D is the founder of Street Food Central and Tru Foo Juice Bar Co. and has worked in the mobile catering industry for over 7 years.