Types of market traders’ insurance
Market stall insurance consists of several types of cover, which you can combine to create a bespoke insurance package.
Public liability
Public liability insurance is there to help pick up the financial pieces if someone is injured or property is damaged by anything connected to your business. For example, someone trips over a wire trailing from your stall and sues you, or your stall collapses and damages a car.
Product liability
You have a legal responsibility to make sure the goods you sell are safe. But, even if you take every precaution, things can still go wrong. Whether you are producing or purchasing goods to sell, you can end up facing legal action. Product liability insurance covers you financially if something you sell causes damage or illness to your customer, and they sue you.
Employer’s liability
If you employ staff, you are legally required to take out employer’s liability insurance, even if they are part-time or a family member. Employer’s liability cover protects you should an employee claim against your business due to an incident or injury.
Stock cover
Your business is all about selling. But what happens if a fire or flood damages your stock? Or thieves steal your products? It can affect your ability to trade and cause significant cash flow issues. Stock cover ensures you do not worry about having nothing to sell and no cash to buy new stocks or supplies.
Personal accident insurance
If you are injured or ill and cannot work, you need financial support. Faced with regular bills and financial commitments, a short, enforced break from work can put you and your business in a difficult position. Personal accident insurance offers a payout to keep you going until you are back on your feet.
Vehicle insurance
If you use your vehicle to transport your commercial stock, you need commercial van or vehicle insurance. It should include goods-in-transit and vehicle breakdown cover, too.
Money cover
Market stalls can be very lucrative, but many still rely on cash sales. That makes you vulnerable to theft. Money cover protects you should larger cash amounts be stolen from your stall or while you are on the way to bank it.
Frequently asked questions
Do I need to take out public liability insurance?
Usually, market traders are not legally obliged to take out public liability insurance. However, you may find it is a condition of your licence from the local council or market organiser. Speak to the local council (or councils) where you sell to find out if you need public liability insurance to trade.
How much public liability cover will I need?
The amount of cover you need depends on the type of business you run. Most insurers offer cover ranging from £1 million to £10 million. To determine what you need, consider the possible level of compensation claims that you could face. For context, the largest public liability claim in the UK was for £24 million.
Do I need products liability insurance to sell food or drink?
If you sell food or drink, products liability insurance will cover you for claims such as food poisoning or an allergic reaction from mislabelled food. Around two million people in the UK have a food allergy. In extreme cases, it can cause brain damage or even death. Public liability insurance protects your business and ensures your customers get the money they need to deal with life-changing injuries if the worst does happen.
Market traders’ insurance with Park Insurance
At Park Insurance, we understand the unique pressures and risks facing market traders and utilise our industry-leading experience and expertise to find you the perfect policy. As preferred brokers, we have access to excellent deals and can help you build a policy that reflects your needs and protects against specific business risks. We aim to deliver tailored policies that ensure you are neither over or under-insured, guaranteeing the best possible prices in the process.
For more information and a no-commitment chat with one of our advisors, contact us today or use our online form to get in touch.