Public liability insurance for event traders

Is public liability insurance a legal requirement?

For most market and event traders, the answer is no. Park Insurance says on its market traders page that traders are usually not legally obliged to hold public liability, but that it may be a condition of a licence from the council or market organiser. The NCASS Festivals and Outdoor Catering Guide 2026 says the same: public liability is not currently a legal requirement, but organisers should not let an event go ahead without adequate cover for all traders. ByteStart makes the same point for self-employed people generally.

Councils often write the requirement into their rules. Newark's stallholder FAQs state that all traders must have public liability insurance, Brent Council says all market traders need it and that you arrange cover yourself, and Redditch Borough Council says applications without it are not processed. Employers' liability is different, and covered below. This guide is general information. Check with the organiser, the council or an insurance adviser before you decide what you need.

What public liability covers

According to Park Insurance, public liability covers compensation you must pay if a member of the public, a client or a contractor is injured or their property is damaged because of your business activities, along with the legal costs of defending the claim. For a stall that could mean a customer who trips over a guy rope, or a gazebo that lifts in wind and damages a parked car.

NMTF's key facts document (version 16, February 2024) describes its members' public liability as covering injury to third parties and damage to their property, including obstruction, trespass and nuisance. The policy wording is what counts in a claim, so read it in full.

What it does not cover

Park Insurance lists these as not covered under standard public liability:

• Injuries to your staff, which fall under employers' liability.
• Injury to yourself, which needs personal accident cover.
• Damage to your own equipment, tools or stock.
• Fines and penalties.
• The cost of repairing or replacing faulty work or products you supplied.
• Environmental claims such as pollution.
• Your policy excess.

The NMTF key facts document adds policy conditions worth knowing. Members must trade only where an appropriate authority has authorised them, report incidents as soon as possible, and follow fire safety procedures before, during and after hot work such as heating or blow torch use, or risk losing the right to indemnity. The same document excludes some product types, among them fireworks and e-cigarettes. Policies from other providers have their own lists, so ask for the exclusions in writing.

Cover levels organisers ask for

Insurers sell public liability in tiers. Park Insurance says most insurers offer cover from £1 million to £10 million, and ByteStart says policies usually start at £1 million with £5 million and £10 million available. Markel says on its market traders page that it offers £1 million to £5 million and that organisers often ask for £1 million or £2 million, with larger or council-run events wanting more. The council terms we read in November 2026 asked for more:

In Gala Tent's experience, most events require at least £5 million public liability, although some require less, and some insurance providers offer one-off event cover of around £2 million. Organisers' requirements vary, so check each organiser. Park Insurance suggests choosing a limit based on the claims you could realistically face, and Markel says to pick a higher limit when unsure because the price difference is often small. We do not quote prices here because they vary by trade, turnover and insurer. Ask for quotes at the level your target events require.

The covers side by side, and how to read the wording

The names are easy to mix up, so this table sets out which cover answers which problem, based on the descriptions published by Park Insurance, GOV.UK and the NMTF.

Lichfield District Council, for example, asks organisers for public liability of at least £5 million per claim. Some event terms add an indemnity rather than a named-party requirement: the Broadstairs Food Festival terms require £5 million cover and ask stallholders to indemnify the festival, without asking for it to be named on the policy. Highland Council in Scotland also asks street market traders for at least £5 million, per its street market permit page. Policies word the limit differently, so ask your insurer whether it applies to each claim, each event or each year, and what the policy says about legal costs.

Other terms also matter. Park Insurance says you cannot reclaim your excess, and NMTF says its members' liability cover carries no excess and applies anywhere in the UK and EU. NMTF's key facts document lists a condition that you trade only where an appropriate authority has authorised you, and that incidents are reported as soon as possible because late reporting may weaken the defence. Ask any insurer which conditions apply to you before you rely on a certificate.

Employers' liability: when you have helpers

GOV.UK says you must have employers' liability insurance as soon as you become an employer, with at least £5 million of cover from an authorised insurer. It gives fines of £2,500 for every day you are not properly insured and £1,000 for failing to display the certificate. You do not need it if you only employ close family members or people based outside England, Scotland and Wales. Public liability does not cover your staff or contractors, according to both Park Insurance and ByteStart. Our employers' liability guide explains who counts as an employee.

Product liability, stock and other cover

Park Insurance's market trader page says product liability covers you if goods you sell cause damage or illness and the customer makes a claim, giving an allergic reaction to a mislabelled food item as an example. NMTF's key facts document describes its product liability as covering injury or damage caused by goods you supplied, sold, repaired, tested or maintained, and it lists product types it excludes, so a trader selling anything unusual should read that list. The NCASS 2026 guide includes product liability in what it calls the industry-standard cover for food traders, at £5 million. Markel says craft insurance combines public and product liability.

Park Insurance's festival planning checklist recommends equipment cover for specialist or expensive equipment, and its market trader page lists stock cover against fire, flood and theft. Chorley Council's terms say traders are responsible for insuring their own goods and fixtures and suggest considering loss-of-business cover. None of this replaces public liability, which only responds to third-party claims.

Group and membership policies

Some traders get cover through a membership. The NMTF says members have public, product and employers' liability of £10 million with no excess, anywhere in the UK and EU. NABMA arranged free public liability for new traders during Love Your Local Market 2025 through G M Imber and Sons Ltd, but its announcement said hot food traders and those using naked flames were excluded under insurer restrictions. Offers like these have their own conditions, so check eligibility before you rely on them.

Does it cover my gazebo?

A gazebo that injures someone or damages property can lead to a public liability claim, but the policy wording governs. The NCASS gazebo guide says insurers expect temporary structures to be fit for purpose and to meet relevant safety standards, and Gala Tent's guide to gazebo safety for organisers warns that poorly secured gazebos may affect cover. Weighting every leg and recording how you did it is part of your risk assessment.

What to do next: checklist before you buy

• Read the trader terms for your target events and note the cover level and any named wording.
• Ask the insurer to confirm in writing that your activity (food, hot work, gazebo, inflatables) is covered.
• Check the limit, the excess and any weather, wind or hot work conditions.
• Ask whether helpers, casual staff and volunteers fall under employers' liability or public liability.
• Request a certificate you can send with each application, and see what organisers ask to see.
• Ask how and when to report an incident, and keep the insurer's claims contact in your phone, because NMTF's key facts document says late reporting may weaken a defence.
• Diarise the renewal date so cover never lapses.