As a market trader, obtaining market stall public liability insurance is compulsory. This applies to people operating stalls at a market, festival, street, concert, exhibition, or another special event. It also applies even if the stall is to be operated for only one day. This requirement must be fulfilled in order to get a license in the first place.
More importantly, it is aimed at protecting the stall owner from financial loss occasioned by his own negligence. This may result in incidents that cause damage to property or injury to persons. A stall owner who employs a helper or labourer is also liable for the worker’s negligence.
Traders at market stalls can be involved in various incidents that may lead to claims against them. Stalls are subject to constant traffic and risk of accidents due to crowding. These incidents are likely to result in injury to members of the public. They may also cause damage to the properties of third parties.
Your business public liability insurance is aimed at indemnifying market traders from any compensation claim. Failure to purchase this type of insurance cover will expose the trader to financial losses arising from costly compensation claims. These claims can run into thousands of pounds, and involve high litigation costs. The insurance cover will additionally pay for the costs of the suit.
A market trader who employs any sort of worker or helper is also exposed to liability. This is due to the fact that every employer is liable for the negligent actions of his workers. The market trader is not exempted from this rule. As an employer, a stall owner must by law additionally purchase employer’s liability insurance.
It is an important insurance cover since it indemnifies the stall owner from financially debilitating compensation claims. The business may be completely wiped out by a single claim, which may at times be extremely costly. This could lead to the bankruptcy of the business or insolvency of the stall owner.
The public liability insurance covers a host of claims arising from damage to property or personal injury. These include bodily harm, shock and fright, mental anguish, and even death. Damage to property may also include loss of use, even though damage may not have actually occurred. The loss of use may be due to damage to other property, making the use of the other property impossible.
The market trade has other risks which may pose a serious financial risk to the business. For example, a customer may bring a claim arising from food poisoning. This is after consuming produce from the stall. This type of claim is covered by product insurance.
Product insurance for market traders is based on the duty of care the stall owner has to his customers. Selling a contaminated or poorly labeled product may lead to injury or cause property damage. This exposes the market trader to an actionable compensation claim.
Market stall public liability insurance and product liability insurance are usually sold as one package for stall traders. This provides wider coverage for the various compensation claims the stall owner is exposed to.