Public and Products Liability
Protect your business with CMTIA’s Public and Product Liability Insurance from just £65 per year*
What is Public and Products Liability Insurance?
Public and Products Liability Insurance is essential for businesses to manage risks associated with third-party claims. This insurance covers compensation costs and legal fees you may need to pay if your business activities harm someone other than an employee or damage their property. This type of liability insurance cover is crucial for sole traders, small businesses, and anyone selling products. Market and event organisers often require proof of public liability insurance, ensuring you’re covered against potential legal action and compliance with health and safety regulations.
What is the difference between Public and Product Liability Insurance?
Public and Product Liability Insurance helps manage risks associated with legal action, compensation claims, and property damage, but they apply in different scenarios.
Public Liability Insurance protects against claims for injury or property damage resulting from your business activities and services, including those involving you and your employees. It is crucial for anyone engaging with members of the public or operating in environments where accidents might occur.
Product Liability Insurance covers claims related to the products you sell, supply, or manufacture. This type of insurance is vital for businesses that produce or handle goods, as it protects against compensation claims arising from faulty products.
Public and Products Liability (£10,000,000 limit) + Employers’ Liability
£110.50
per year*
Features & Benefits
Protects against claims by third parties for death, bodily injury (including illness), or property damage
Limits of Indemnity of either £5,000,000 or £10,000,000 any one event (for Products Liability all events in the period of insurance)
Option to increase the Limit of Indemnity to £10,000,000 part way through the period of insurance for a set additional premium
Covers online sales for similar products sold at craft or market stalls (excluding sales to USA or Canada)
No excess
Including:
- Principals Liability – event organisers often stipulate this extension is required
- Libel and Slander - £250,000 limit for all claims in the period of insurance
- Data Protection - £5,000,000 for all claims in the period of insurance
- Safety Legislation – assists with legal representation in connection with alleged breaches of statutory duties
- Compensation for court attendance - £500 per day (where AXA request your attendance at court)
Main Insurance Exclusions
- Aviation and hovercraft products
- Safety critical products including any Motor and Aviation products
- Firework products
- Hot work activities (other than the cooking of food)
- Products sold to USA or Canada, whether knowingly or unknowingly
- Second hand electrical products
- Vaping and e-cigarettes including replacement liquids, chargers and accessories
- Treatment (whether be physical, mental, or cosmetic) other than the sale of proprietary cosmetics
- Product recall or rectification of defects
- Delivery of Professional Services
Frequently Asked Questions
Public Liability covers you if someone, other than an Employee, holds you legally liable for death, or injury suffered, or property damage caused, because of your business activities. For example, if a customer tripped over a box at your stall and was injured , they could bring a claim against you.
Products Liability covers you if, someone, other than an Employee, holds you legally liable for death, or injury suffered, because of products supplied or sold by you. For example, if a customer injured themselves because of a sharp object found in a piece of jewellery which broke through no fault of their own, they could bring a claim against you.
The annual premium for £5,000,000 Public and Products Liability is £65.00.
To include Employers’ Liability, the premium will be £97.50.
If you would like higher limits of indemnity for Public and Products Liability (£10,000,000) prices increase to £78.00 and £110.50 (with Employers’ Liability).
Our One Day Public Liability policy is £27.00 for £5,000,000 Limit of Indemnity or £33.00 for £10,000,000 Limit of Indemnity.
All prices quoted are inclusive of Insurance Premium Tax (IPT) at 12% and an
You can renew your policy online here or call us on 0208 102 9400 to renew and pay for your policy over the phone.
All claims are dealt with by your insurer, AXA Insurance UK plc. To report a claim, please contact them directly on 0345 900 4185 (option 3).
You will need the following details which can be found on your certificate of insurance:
- Scheme policy number (this begins BL BDX, followed by 7 numbers)
- Policy number (this begins SMT, followed by 5 numbers)
- Name of the insured
Both Public Liability and Products Liability insurance are essential for market traders, but they cover different risks related to your business activities.
- Public Liability Insurance protects you if a member of the public is injured or their property is damaged because of your business activities. For example, if someone trips over a box at your stall and gets hurt, Public Liability insurance would cover the legal costs and compensation claims. This type of cover is crucial for market traders who interact with the public regularly, as many market organisers require it before you can trade.
- Products Liability Insurance, on the other hand, covers you if a product you sell causes injury or damage to someone’s property. For instance, if you sell a faulty item that injures a customer or damages their belongings, Products Liability insurance would help cover any legal fees and compensation claims. This is especially important for traders selling physical goods like food, clothing, or handmade items.
Before answering the question of whether you need handmade craft insurance it is important to understand where you plan to sell your products. For most online craft marketplaces, you don’t legally need insurance to sell your crafts. But before letting you sell at a craft fair, the fair organisers will want confirmation that you have an insurance policy covering Public and Products Liability risks, with a minimum cover limit of either £5,000,000 or £10,000,000.
Our handmade Craft Insurance is for UK residents who make create a wide range of crafts, such as soap, cosmetics, jewellery, handmade cards and candles. Whether you are a sole trader, private individual or craft hobbyist, we can help
CMTIA and Combined Market Traders Insurance Association are trading names of Hayes Parsons Limited, an independent, Chartered Insurance Broker based in Bristol. If you call or email us, you will speak to our experienced market trader team in the Hayes Parsons office. You can find out more about Hayes Parsons here.
The amount of Products Liability insurance you need for your market stall depends on the types of products you sell, and the potential risks associated with them. Most insurers usually offer coverage ranging from £1 million to £10 million.
When deciding how much cover you need, consider the following factors:
- Potential compensation claims: If a product you sell causes injury or damage, compensation claims can be costly. The higher the risk of these claims, the more cover you may need.
- Market organiser requirements: Some markets or events may require a minimum level of Products Liability insurance, often starting at £1 million. Be sure to check with the event organisers to meet their requirements.
- Product type: If you sell higher-risk items, such as food or electrical goods, you may want to opt for higher coverage, as these products can lead to more significant claims.
Yes, CMTIA offers liability insurance for ad-hoc traders or stallholders who need a one-off policy for a single event only. If you are not sure if trading at a market or selling your products is going to be a success, a one-day policy provides Public Liability cover whilst you decide.
This type of policy is also ideal for charities hosting one-time fundraising events, such as bake sales, ensuring you’re protected without committing to long-term insurance.
No, Public Liability insurance is not a legal requirement for market traders in the UK. However, while it’s not mandated by law, many market organisers and event hosts require traders to have Public Liability insurance as a condition for participating. This type of insurance protects you financially if a member of the public is injured or their property is damaged due to your business activities.
For market traders, especially those interacting with the public regularly, Public Liability insurance is highly recommended. It provides crucial protection against costly legal claims and compensation pay-outs that could arise from accidents at your stall. Many professionally organised markets will not allow you to trade without proof of adequate cover.
Yes, if you want to operate a market stall, you’ll need to apply for the appropriate licence from your local council. Depending on how and where you trade, you will generally require either a market stall licence or a street trader licence.
- Trading without the correct licence can result in prosecution for illegal trading.
- If you’re running a food stall, you must also register with your local authority’s environmental health department to ensure compliance with food safety regulations.
It’s important to check with your local council for specific requirements and ensure all necessary licences are in place before you start trading.
CMTIA offers comprehensive liability insurance tailored to a wide variety of market traders and stallholders, ensuring you’re protected no matter what you sell or where you trade. Our coverage includes:
- Market Stallholders: Whether you have a permanent stall at an indoor or outdoor market, or you operate pop-up or temporary stalls across different locations, CMTIA covers traders selling a wide range of products such as toys, fruit and vegetables, vintage clothing, books, and more.
- Food and Drink Vendors: If you’re selling food and beverages, there are unique risks involved. From hot coffee spills to potential food poisoning incidents, our insurance helps protect you from the financial fallout of these unforeseen events.
- Artists and Crafters: For those selling handmade goods like cosmetics, candles, crochet items, cards, jewellery, and other crafts at markets, fairs, or events, CMTIA provides coverage that safeguards your creative business from liability claims.
- Event and Festival Traders: If you trade at licensed events such as festivals, carnivals, street parties, village fetes, or pop-up events, our insurance ensures you’re covered for the potential risks that come with large crowds and temporary setups.
Yes, you can have up to three business partners or family members named on the policy. If you employ people, you will also need to purchase Employers’ Liability insurance. Employees are not named on the policy.
Yes, cover is provided automatically but only applies to products which are similar to those sold at physical events. Sales of products to USA or Canada are also excluded.
Should your annual sales from online selling exceed £50,000, then unfortunately this policy is not suitable for you as this is the maximum threshold for online sales to be accepted.
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