Public Liability Insurance for Market Traders

No general law makes market traders buy public liability insurance, but councils and market operators may make it a condition of your pitch. Camden Council, for example, will not let licensed street traders trade without valid cover of at least £5 million. If you sell goods, product liability cover deals with claims that something you sold injured someone, and if you employ a helper you need employers’ liability insurance by law.

What can go wrong on a market stall?

A stall is a small temporary workplace in a busy public space. The risks come from the pitch itself and from what you sell:

• a shopper trips over a gazebo weight, a crate or a power cable;
• a gazebo or display is lifted by the wind and hits someone;
• a gas bottle, heater or cooking equipment causes a burn or a fire;
• a product you sold breaks, overheats or causes an allergic reaction;
• your van or trolley damages another trader’s stall while you set up;
• a helper hurts their back lifting stock.

Example. Sam makes candles and soaps and trades at three weekly markets and a few seasonal fairs. At one market a corner weight on her gazebo is missing, a gust lifts the frame and it strikes a shopper on the next pitch. A month later a customer says one of Sam’s candles cracked its glass jar while burning and scorched a table. The shopper’s injury is a public liability claim. The damaged table is a product liability claim, because it arises from something Sam made and sold. A combined policy is designed to deal with both, subject to its terms, but only if Sam told the insurer she makes her own products.

Which covers fit a market trader?

Cover	What it is for	When it fits
Public liability	Claims by shoppers and other third parties for injury, or damage to their property, caused by your trading	Any trader with a pitch open to the public
Product liability	Claims that a product you made, supplied or imported injured someone or damaged their property	Anyone who sells or gives away physical goods
Employers’ liability	Claims by employees injured or made ill at work	Required by law if you employ anyone, with limited exceptions such as employing only family members
Stock and equipment	Loss, theft or damage to your stock, gazebo, display and tools	When losing stock would stop you trading
Goods in transit	Loss or damage to stock while it is being carried in your vehicle	When you travel between markets with valuable stock

What do councils and market operators ask for?

Every council and market operator sets its own conditions, so read the licence or pitch agreement. Camden Council’s street trading licence conditions are a useful example of how detailed they can be:

• public liability cover with a minimum of £5 million for each and every claim;
• no trading at any time without valid insurance cover;
• temporary suspension from trading if insurance certificates are not produced within 7 days of a request from an authorised officer;
• electrical equipment inspected by a competent person, with the latest certificate kept on the stall;
• gas appliances checked and tested, with LPG cylinders kept in the open air or in a separate ventilated, fire resistant compartment;
• suitable fire fighting equipment on the stall.

Event organisers and private markets may ask for a copy of your certificate when you book a pitch. Our page on public liability insurance for event organisers explains why organisers check this, and how much public liability insurance you need helps you choose a limit.

Do you need product liability insurance if you only resell goods?

Often, yes. Under the Consumer Protection Act 1987, liability for damage caused by a defective product falls on the producer, on anyone who puts their own name or brand on the product, and on anyone who imports it into the United Kingdom to supply it in the course of business. A supplier, such as a market trader, can also become liable if an injured person asks them to identify the producer or the person who supplied them and they fail to do so within a reasonable period.

That means keeping records of where you buy your stock is part of managing the risk. If you import goods yourself, sell under your own label or make products, tell the insurer, because each changes the product liability exposure. The Association of British Insurers says you should consider product liability insurance if your business designs, manufactures or supplies a physical product that is sold or given away for free. Read our guides to product liability insurance and defective product liability claims for more.

Separately, the Consumer Rights Act 2015 says every contract to supply goods includes a term that the goods are of satisfactory quality. Refunds and replacements under that rule are a cost of trading, not something a liability policy is designed to pay.

What extra rules apply to food stalls?

GOV.UK says food business registration with your local council includes businesses trading from home, a mobile unit or temporary premises such as a stall or van. Cooking on the stall, using gas and selling food all change the risk, so tell the insurer exactly what you prepare, whether you cook on site, how you handle allergens, and what fuel you use.

Do you need employers’ liability insurance for a helper?

If you employ someone, even part time, GOV.UK says your employers’ liability policy must cover you for at least £5 million and come from an authorised insurer. You can be fined £2,500 for every day you are not properly insured, and £1,000 if you do not display the certificate. You do not need it if you only employ family members. See employers’ liability insurance for one employee.

What drives the price of market trader insurance?

• What you sell, for example food, cosmetics, candles, electrical goods, toys or clothing.
• Whether you make, import, own brand or simply resell the goods.
• Your turnover, and how much comes from markets, fairs and online sales.
• Whether you cook or use gas or heaters on the stall.
• How many markets and events you attend, and where.
• The number of staff or helpers.
• The value of your stock and equipment, and where it is kept overnight.
• The limit of indemnity your markets ask for, and your claims history.

What should you have ready when asking for a quote?

• A clear description of what you sell, and whether you make, import or resell it.
• The markets, fairs and events you trade at, and the insurance conditions they set.
• Your annual turnover and how it splits between stall and online sales.
• The number of employees or helpers.
• Stock and equipment values if you want them insured.
• Details of any past claims.

Ask us for a quote and we will look for cover that meets your markets’ conditions. You can call us on 01795 841 310, Monday to Friday 9am to 5pm. For the basics of the core cover, read what is public liability insurance.

Frequently asked questions

Do I need insurance for a one day craft fair?

The organiser may ask for a public liability certificate before giving you a pitch, and the risk to shoppers is the same on day one as on day fifty. Tell us how often you trade and we will look for cover to suit.

Does public liability insurance cover my stock if it is stolen?

No. Public liability deals with claims made against you by other people. Theft of your own stock needs stock cover, and stock in your vehicle may need goods in transit cover.

Am I covered for products I also sell online?

That depends on the policy wording and what you told the insurer. Tell us about every way you sell, including online and to other shops, so the product liability cover reflects all of it.

Do I need a separate policy for each market?

That depends on the policy wording, and in particular on any limits on where you may trade. Tell us every market you attend, and check whether any of them asks to be named on the certificate.

Does my policy cover the trader on the next pitch?

No. Each trader needs their own cover for their own liability. Your policy deals with claims made against you.

Sources

• www.camden.gov.uk: Street trading licence conditions
• legislation.gov.uk: 2
• ABI: Product liability insurance
• legislation.gov.uk: 9
• GOV.UK: Food business registration
• GOV.UK: Employers liability insurance

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 10 November 2026. Solar Protect is the trading name of Solar Insurance Services (Medway) Limited, authorised and regulated by the Financial Conduct Authority. This page is general information, not personal advice.