Market trader insurance: key facts
- Markets, councils and craft fairs usually require public liability before you can trade, most often £5 million and sometimes £10 million.
- Public liability is not a legal requirement for a sole-trader stallholder, but you can rarely get a pitch without it.
- Product liability covers harm caused by goods you sell. Under the Consumer Protection Act 1987, makers and importers of faulty products can be liable.
- A sole-trader market trader typically pays roughly £60 to £160 a year for public and product liability (rough guide, including 12% Insurance Premium Tax).
- Employers' liability is a legal requirement once you employ anyone, with at least £5 million of cover. Fines can reach £2,500 a day.
- Gazebos blowing over and trips over cables, guy ropes or stock boxes are common causes of claims.
- Stock cover often has separate limits at the market, in transit and stored overnight.
What does market trader insurance cover?
Market trader insurance is a bundle of covers built around a stall. The core is public and product liability, which pays out if your stall or the goods you sell injure someone or damage their property. Most traders add stock, equipment and takings cover.
| Cover | What it protects | Who needs it |
|---|---|---|
| Public liability | Injury to the public, or damage to their property, caused by you, your stall or your gazebo. | Every market trader. Almost every market asks for it. |
| Product liability | Injury, illness or damage caused by goods you made, imported or sold. | Anyone selling goods, especially handmade, imported, cosmetics, candles, toys or food. |
| Stock cover | Your goods if stolen or damaged at the market, in transit or stored overnight. | Traders whose stock would be costly to replace. |
| Stall and gazebo equipment | Your gazebo, tables, rails, displays, lights and generator. | Anyone with kit they couldn't easily replace. |
| Money and card machine | Cash takings and float if stolen, plus your card reader. | Traders who handle a lot of cash or take it home. |
| Employers' liability | Claims from staff injured or made ill working for you. | A legal requirement once you employ anyone, including casual stall help, unless an exemption applies. |
| Personal accident | A payout if an injury, such as a back injury from lifting stock, stops you trading. | Sole traders with no sick pay. |
| Business vehicle use | Driving stock to and from markets. | Every trader who drives to pitches. Arranged through your motor insurer. |
Market stall insurance: what markets and craft fairs ask for
Most market operators ask for a public liability certificate showing at least £5 million of cover before confirming a pitch. Some councils, large Christmas markets and venues such as shopping centres ask for £10 million.
| Type of event | Public liability usually asked for | Other common requirements |
|---|---|---|
| Council or charter market | £5m, sometimes £10m | Street trading consent or market licence, yearly certificate, sometimes PAT-tested electrics. |
| Private weekly or farmers' market | £5m | Weights on every gazebo leg, food registration for food sellers. |
| Craft fair or makers' market | £5m, including product liability | Cover for handmade goods, fire-retardant materials at indoor venues. |
| Christmas market or large event | £5m to £10m | Risk assessment, fire and electrical safety records. |
| Car boot sale | Often none for private sellers | Some organisers ask regular traders for a certificate. |
Keep your certificate on your phone. Organisers sometimes check on the day.
Is market trader insurance a legal requirement?
No law makes a sole-trader stallholder buy public or product liability insurance. The only compulsory cover is employers' liability, needed once you employ anyone, with at least £5 million of cover under the Employers' Liability (Compulsory Insurance) Act 1969.
- You usually can't book a pitch without cover. Organisers make public liability a condition of trading.
- Product liability law applies regardless. If a product you made or imported injures someone, you can be liable under the Consumer Protection Act 1987 whether or not you are insured.
Staff and family helpers. If you pay someone to help on the stall, even for the Christmas rush, they are likely to count as your employee. There is a narrow exemption for employers whose only employees are close family members, but it does not apply to limited companies. Check HSE guidance, or ask the broker, before relying on it. Fines can reach £2,500 for every day you are uninsured.
Driving to markets. If you carry stock to a pitch, your motor insurance must include business use.
How much does market trader insurance cost?
As a rough guide, a sole-trader market trader pays about £60 to £160 a year for public and product liability, including 12% Insurance Premium Tax. Adding stock, gazebo and takings cover usually brings it to roughly £130 to £380.
| Typical set-up | Rough guide price per year |
|---|---|
| Sole trader, public and product liability only | £60 to £160 |
| Sole trader adding stock, gazebo and takings | £130 to £380 |
| Market business with staff (adds employers' liability) | £450 to £1,000 |
What affects your price:
- What you sell. Clothing and books are low risk. Cosmetics, candles, toys, electricals, food and imported goods usually cost more.
- Making or importing. Makers and importers carry more legal responsibility than traders buying from a UK wholesaler.
- Liability limit. £10 million costs a little more than £5 million.
- Stock value and storage. Stock kept in a vehicle or unalarmed lock-up overnight costs more to insure.
- Cash, turnover, staff and claims history.
Annual or one-off? If you only do two or three fairs a year, event-only cover can be cheaper. If you trade regularly, an annual policy is usually better value.
What to check before you buy public liability insurance for market traders
Before buying public liability insurance for market traders, check the limit matches what your markets ask for, that product liability covers the goods you sell, and that stock and cash cover apply wherever they really are, including overnight.
| Check | Why it matters |
|---|---|
| Liability limit | Too low a limit can mean being turned away from a pitch. |
| Goods on the schedule | Product liability usually only covers goods you declared. Tell the insurer when you add new lines. |
| Handmade and imported goods | Some policies exclude goods you make or import yourself. |
| Gazebo conditions | Some policies require gazebos to be weighted. Ignore this and a wind claim may be refused. |
| Market stock insurance overnight | Stock in an unattended vehicle overnight is often excluded. Check cover at home, in a lock-up and in your van. |
| Cash limits | Cash kept at home overnight often has a lower limit than cash on the stall. |
| Venues and excess | Check indoor and outdoor events are both covered, and that the excess isn't so high small claims are pointless. |
Rules and regulations market traders should know
Market traders must sell safe goods, under the General Product Safety Regulations 2005 in Great Britain, and can be liable for faulty products under the Consumer Protection Act 1987. You may also need street trading consent, and food sellers must register with their council.
- Product liability. Under the Consumer Protection Act 1987, the producer of a defective product is liable for injury or damage it causes, without the injured person proving negligence. If you make goods, you are the producer. If you import them, you may carry the same responsibility. If you can't say who supplied goods to you, you can end up liable, so keep supplier invoices.
- Product safety. In Great Britain, the General Product Safety Regulations 2005 require you to supply only safe products, and goods such as toys, cosmetics and electricals have their own rules. Northern Ireland follows different rules. Your local Trading Standards service can help if you are unsure.
- Street trading and market rights. Trading in the street usually needs consent or a licence from the council. Some towns have markets run under historic charter or statutory rights, which can restrict rival markets nearby. Rules differ in London, Scotland and Northern Ireland, so check with the council.
- Selling food. Register as a food business with your council, ideally at least 28 days before trading, and give allergen information. See our mobile catering insurance guide.
- Trade body. The National Market Traders' Federation is a voluntary trade body. Membership is not required.
Common market trader insurance claims
Common market trader claims involve gazebos lifted by wind, customers tripping over cables or stock boxes, faulty products causing injury after sale, and stock or cash being stolen.
| What happened | Cover that may pay |
|---|---|
| Wind lifts an unweighted gazebo, which hits a shopper and damages the next stall. | Public liability, if gazebo conditions were met |
| A customer trips over a generator cable and breaks a wrist. | Public liability |
| A handmade candle scorches a customer's furniture. | Product liability |
| A child is hurt by a small part from an imported toy. | Product liability, if imports are covered |
| Stock is stolen from your van overnight. | Stock cover, only if overnight cover applies |
| Your cash tin is snatched from the stall. | Money cover |
| A paid helper hurts their back lifting crates. | Employers' liability |
Weight every gazebo leg, cover cables, keep boxes under the table, and don't leave stock or cash in the vehicle overnight.
Starting a market stall business: checklist
To start a market stall, register as self-employed, check your goods are safe, get public and product liability cover, book pitches and check licences, and register as a food business if you sell food.
- Register as self-employed with HMRC and record your takings and costs.
- Check your products meet the safety and labelling rules that apply, and keep supplier invoices.
- Get public and product liability insurance at the limit your markets ask for.
- Read each market's terms on insurance, gazebos, electrics and fire safety.
- Ask the council whether you need street trading consent.
- Register as a food business if you sell food.
- Sort your kit: gazebo and leg weights, cable covers, float and card reader.
- Insure stock and takings once they are worth more than you could afford to lose.
- Add business use to your motor insurance.
- Add employers' liability before anyone outside the family exemption helps.
Craft fair insurance: use a broker or buy online?
Buying craft fair or market trader insurance online is fine for simple, low-risk goods. A broker is more useful if you make or import products, sell cosmetics, candles, toys or food, need high stock or cash limits, or employ help.
Online policies use fixed lists of goods, and handmade or imported ranges can fall between categories. A broker who arranges cover for market traders can compare insurers, check your product liability fits what you sell, and help if you claim.
For every type of business cover, see our small business insurance guide.
Related guides
Market trader insurance: frequently asked questions
Is market trader insurance a legal requirement in the UK?
No law requires a sole-trader stallholder to have public or product liability insurance, but almost every market makes it a condition of booking. Employers' liability is a legal requirement once you employ anyone.
How much does market trader insurance cost?
As a rough guide, a sole trader pays about £60 to £160 a year for public and product liability, including 12% Insurance Premium Tax. Adding stock, gazebo and takings cover typically brings it to around £130 to £380.
How much public liability do I need for a market stall?
Most markets and craft fairs ask for £5 million. Some councils, Christmas markets and large venues ask for £10 million.
Do I need product liability insurance for selling handmade goods?
It is strongly advisable. If you make a product, you are its producer under the Consumer Protection Act 1987 and can be liable if it causes injury or damage.
Do I need insurance for a car boot sale?
Not usually if you are clearing out your own things. If you buy goods to resell or sell regularly, you are likely to be trading, and organisers often ask traders for public liability.
Can I get craft fair insurance for one event?
Yes. Some insurers offer event-only or short-term cover. If you trade more than a few times a year, an annual policy is usually cheaper.
Does market stall insurance cover my gazebo blowing away?
Public liability can cover damage or injury your gazebo causes to others, often only if it was properly weighted. Damage to the gazebo itself needs equipment cover.
Is my stock covered in my van overnight?
Often not, or only with conditions such as the van being locked in a garage. Check the overnight wording.
Does family helping on the stall need employers' liability?
Possibly. There is a narrow exemption for businesses employing only close family members, but not for limited companies. Check HSE guidance or ask a broker.
Am I liable for products I import and sell?
You can be. Under the Consumer Protection Act 1987, an importer into the UK can be liable for a defective product in the same way as the manufacturer.
Do I need a licence to be a market trader?
Organised markets usually handle pitch permissions, but street trading normally needs consent or a licence from the council. Rules vary across the UK.
Do I need different insurance to sell food at markets?
Your policy must cover food sales. You also need to register as a food business with your council and provide allergen information.