What is Public Liability Insurance?

How Much Public Liability Insurance Do I Need?

The amount of Public Liability Insurance you need depends on the nature of your business, the risks involved, and any specific requirements set by organisers, venues, or contracts. Here are some factors to consider when deciding how much cover is appropriate:

1. Market or Event Requirements – Many market organisers or event hosts require a minimum level of Public Liability Insurance as a condition for participation. This is often set at £5 million but can vary depending on the scale and type of event.
2. Nature of Your Business – The products you sell and the environment in which you trade influence your risk level. For example, Food and drink vendors may require higher cover due to risks like food poisoning or burns. Traders selling handmade goods or crafts might need less cover unless their products pose specific risks (e.g., skincare items).
3. Footfall and Interaction with the Public – The more customers you interact with, the higher the likelihood of accidents occurring. Busy markets or festivals with large crowds may necessitate higher levels of insurance.
4. Claim History – If you have claimed frequently in the past, you may want to consider a higher level of cover
5. Risk Appetite – If you’ve generally got a lower risk appetite, a higher level of cover can offer peace of mind
6. Industry Standards – Some industries or professional bodies recommend specific levels of cover as part of their guidelines. Check whether your trade association has set minimum requirements.

How Much Does Public Liability Insurance Cost in the UK?

The cost of Public Liability Insurance in the UK varies depending on the level of cover you need, the nature of your business, and the risks involved. For market traders, stallholders, and small business owners, CMTIA offers affordable Public and Products Liability Insurance starting from just £65 per year. Here’s a breakdown of our pricing:

• £5 million Public and Products Liability: £65 per year*
• £10 million Public and Products Liability: £78 per year*
• £5 million Public and Products Liability + Employers’ Liability: £97.50 per year*
• £10 million Public and Products Liability + Employers’ Liability: £110.50 per year*

For those who only need short-term cover, we also offer one-day Public Liability policies, starting at just £27 for £5 million cover or £33 for £10 million cover.

Factors That Influence the Cost:

1. Level of Cover: Higher cover limits (e.g., £10 million) cost more than lower limits (£5 million).
2. Duration of Cover: Annual policies are cost-effective for regular traders, while one-day policies suit occasional or ad-hoc events.
3. Additional Cover: Adding Employers’ Liability Insurance increases the premium but provides vital protection if you employ staff.

CMTIA’s policies are specifically designed for market traders, covering a wide range of activities and products with no excess on claims. This ensures you’re protected without unexpected out-of-pocket costs if a claim arises.

All prices include Insurance Premium Tax (IPT) at 12% and a £6 administration fee. For more details on what’s covered, visit CMTIA’s website or contact our team directly.

What Claims Can Public Liability Insurance Provide Cover For?

Public Liability Insurance is essential for market traders, as it protects against claims made by third parties for injuries or property damage caused by your business activities. Here are some real-world examples of situations where this cover can make all the difference:

• Slips, Trips, and Falls: A customer visiting your stall trips over a loose cable and falls, injuring their wrist. They file a claim to cover their medical expenses and lost income while recovering.
• Property Damage: While setting up your stall, a heavy display board accidentally topples over and damages a nearby vendor’s expensive equipment. They demand compensation for the repair costs.
• Food-Related Incidents: As a food vendor, you sell a batch of products that unintentionally causes food poisoning to several customers. They seek compensation for medical costs and inconvenience.
• Falling Objects: A poorly secured sign or piece of stock falls from your stall during a busy market day, hitting a passer-by and causing injury or damaging their personal belongings, such as a phone or handbag.
• Legal Defence Costs: A customer claims they were injured at your stall, but you believe the incident wasn’t your fault. Public Liability Insurance covers the legal fees required to defend your business in court.

As you can see, even with the best precautions in place, accidents can happen when you’re running a stall or trading in public spaces. Public Liability Insurance ensures that you’re financially protected from these unexpected events, so you don’t have to worry about footing the bill for costly claims.

Do I need Public Liability Insurance If I’m A Sole Trader?

Yes, sole traders can benefit greatly from having Public Liability Insurance. Even if you work for yourself, your business activities are likely to bring you into contact with third parties, such as customers, suppliers, or members of the public. Whether you’re running a market stall, providing a service, or selling products, there’s always a chance that an accident could happen.

Public Liability Insurance provides peace of mind by protecting you financially if something goes wrong. It’s also worth noting that many markets and event organisers require sole traders to have this cover before allowing them to trade.

Read our in-depth blog for more information on whether you need public liability insurance as a sole trader.

How Can I Make A Claim On My Public Liability Insurance?

If you need to make a claim on your Public Liability Insurance, the process is straightforward and handled directly by your insurer. At CMTIA, all claims are managed by AXA Insurance UK plc, ensuring you receive professional support throughout.

Steps to Make a Claim:

1. Check Your Policy
   Before making a claim, review your policy documents to confirm that the incident is covered under your insurance.
2. Contact AXA Insurance
   Notify AXA Insurance as soon as possible by calling 0370 900 0867 (option 2). Early notification helps ensure your claim is processed efficiently.
3. Provide Key Details
   When contacting AXA, you’ll need the following information, which can be found on your certificate of insurance:
   • Scheme Policy Number: Begins with “BL BDX” followed by seven numbers.
   • Policy Number: Begins with “SMT” followed by five numbers.
   • Name of the Insured: The name under which the policy is registered.
4. Record Incident Details
   Be ready to provide a clear account of the incident, including:
   • The date, time, and location of the event.
   • A description of what happened and how it occurred.
   • Details of any injuries or property damage caused.
   • Contact details for any third parties involved or witnesses.
5. Submit Supporting Evidence
   If possible, provide photographs, witness statements, repair estimates (for property damage), or medical reports (for injuries). This will help AXA assess your claim quickly.
6. Follow Insurer Guidance
   AXA will guide you through the next steps, which may include appointing a solicitor or loss adjuster to assist with resolving the claim.

Important Notes:

• Do not admit fault or liability at any stage without consulting AXA first.
• Notify AXA even if a formal claim hasn’t been made yet, as they can advise on how to proceed.

By following these steps and providing accurate information, you can ensure your claim is handled efficiently and professionally. For more details about making a claim, visit our dedicated page here: Make a Claim.

What Is the Difference Between Public Liability Insurance and Products Liability Insurance?

Imagine you’re running your market stall on a busy weekend. A customer trips over a cable at your setup and injures themselves. Later, another customer buys one of your products, which unfortunately causes harm due to a defect. These are two very different scenarios – and they’re covered by two distinct types of insurance.

Public Liability Insurance – Protecting Your Activities

Public Liability Insurance covers incidents caused by your business activities that result in injury to third parties or damage to their property. For example:

• A customer trips over a loose cable at your stall and breaks their wrist.
• Your display board falls and damages another trader’s equipment.

This type of insurance is essential for market traders who interact with customers in public spaces. Many market organisers won’t let you trade without it.

Products Liability Insurance – Protecting What You Sell

Products Liability Insurance, on the other hand, protects you if a product you sell causes harm or damage. For example:

• A customer buys a handmade candle from your stall, and it causes a fire due to a defect.
• A piece of jewellery you sell has sharp edges that injure a buyer.

This cover is crucial for traders selling physical goods, especially items like food, cosmetics, or electrical products that carry higher risks.

Why Do You Need Both?

While Public Liability Insurance covers accidents linked to your business activities, Products Liability Insurance specifically protects against risks associated with the products you sell. Together, they provide comprehensive protection for market traders, ensuring peace of mind no matter what happens.

What’s the Difference Between Public Liability and Employers’ Liability Insurance?

The key difference lies in who is covered: Public Liability Insurance protects you from claims made by people outside your business, while Employers’ Liability Insurance covers claims from those working for you.

Employers’ Liability Insurance, on the other hand, is legally required in the UK if you employ staff. It protects your business if an employee becomes ill or is injured because of their work. For instance, if an employee injures themselves while lifting heavy stock at your stall or develops a workplace-related illness due to unsafe conditions, Employers’ Liability Insurance would cover compensation costs and legal fees. This applies to full-time and part-time employees, contractors, apprentices, and even volunteers working under your direction. Failure to have this insurance can result in fines of up to £2,500 per day.

Why Choose CMTIA For Your Public and Products Liability Insurance

When it comes to protecting your market stall, craft business, or food van, CMTIA offers Public and Products Liability Insurance designed specifically for traders like you. Here’s why thousands of market traders across the UK trust us to safeguard their businesses:

• Affordable Cover: Policies start from just £65 per year, with flexible options, including one-day cover.
• Hassle-Free: Apply online in 2 minutes and get your documents emailed within 20 minutes.
• No Excess: Make a claim without paying a penny out of pocket.
• Comprehensive liability insurance for Market Traders: Specialised in covering market traders, stallholders, crafters, and food vendors. Our policies are designed to meet the unique risks you face – from accidental injuries at your stall to claims arising from the products you sell.
• Unlimited Events: Trade at as many markets, fairs, or festivals as you like – your policy has no limits.

With quick applications, no excesses, and cover specifically for Market Traders and Stallholders, CMTIA makes protecting your business simple and stress-free. Apply online to protect your business today.