You're paying £1,200 a year for insurance, but you're not entirely sure what it covers. Is it all necessary? Can you save money? Here's what each type of insurance actually protects—and what you might be able to cut without risking your business.
The Insurance You Absolutely Need
Let's start with the non-negotiables. These aren't optional—without them, you're either breaking the law or taking unacceptable risks.
Public Liability Insurance
What it covers: Claims from members of the public who are injured or have property damaged because of your business. Someone trips over your cable and breaks their wrist? This covers it.
Why you need it: Most venues, event organisers, and councils won't let you trade without it. Wedding venues typically require £5 million minimum. Festivals often want £10 million.
Typical cost: £150-400 per year for £5-10 million cover.
Product Liability Insurance
What it covers: Claims related to food you've served causing illness or injury. Someone has an allergic reaction to undeclared allergens? This protects you.
Why you need it: If you're serving food or drinks, this is essential. One food poisoning claim could bankrupt you without it.
Typical cost: Often bundled with public liability. If separate, £100-250 per year.
Vehicle Insurance
What it covers: Your van, food truck, or trailer on the road. Accidents, theft, damage.
Why you need it: It's a legal requirement to drive on public roads. But make sure you have the right type—standard personal insurance won't cover commercial use.
Typical cost: £600-2,000+ depending on vehicle value, your driving history, and whether it's a converted vehicle.
Pro Tip
When getting vehicle quotes, be honest about business use. If you're using a standard personal policy for commercial purposes and make a claim, the insurer can void your policy entirely. You'd get nothing.
Insurance You Probably Need
These aren't strictly required but are strongly recommended for most vendors.
Employers' Liability Insurance
What it covers: Claims from employees who are injured or become ill because of their work.
Why you might need it: Legally required if you have any employees—including part-time staff and casual workers. The only exemption is if you only employ close family members.
Typical cost: £50-150 per year for small teams.
Equipment/Contents Insurance
What it covers: Your cooking equipment, fridges, generators, gazebos, and other business assets if they're stolen or damaged.
Why you might need it: If your generator gets stolen from the van overnight, could you afford to replace it tomorrow? If not, you need cover.
Typical cost: £100-300 per year depending on total value insured.
Insurance You Might Consider
These are genuinely optional and depend on your circumstances.
Stock Insurance
What it covers: Food and drink stock if it spoils (fridge breakdown) or is stolen.
Worth it if: You carry expensive stock (premium spirits for a mobile bar) or bulk-buy before busy periods.
Maybe skip if: You buy stock as needed and never have more than a few hundred pounds' worth at risk.
Business Interruption Insurance
What it covers: Lost income if you can't trade—van broken down, equipment stolen, venue cancellation.
Worth it if: You have fixed costs that continue even when you can't work, or you'd struggle financially if you missed peak season.
Maybe skip if: You have a solid emergency fund and could survive a few weeks without income.
Personal Accident/Income Protection
What it covers: Pays out if you're injured and can't work.
Worth it if: You're the sole earner in your household or have significant financial commitments.
Maybe skip if: You have savings to cover months off work, or a partner who could support you.
How to Save Money on Insurance
Insurance is essential, but that doesn't mean you should overpay. Here's how to reduce costs without reducing protection:
1. Shop Around Every Year
Loyalty doesn't pay with insurance. Get at least three quotes every renewal. Use specialist catering or event vendor brokers—they often get better rates than generic comparison sites.
2. Bundle Policies
Many insurers offer discounts for combining public liability, product liability, equipment, and employers' liability into one package. A single policy is also easier to manage.
3. Increase Your Excess
A higher excess (the amount you pay before insurance kicks in) means lower premiums. If you can afford to cover the first £500 of a claim, you'll pay less for the policy.
4. Only Insure What You Need
If your equipment is worth £5,000, don't insure it for £15,000 "just in case." Similarly, review your cover annually—if you've sold equipment or reduced your stock levels, your cover (and premium) should reflect that.
5. Pay Annually
Monthly payments typically cost 10-20% more than paying upfront. If cash flow allows, pay annually and save.
| Insurance Type | Essential? | Typical Cost |
|---|---|---|
| Public Liability | Yes | £150-400/year |
| Product Liability | Yes (for food vendors) | Often bundled |
| Vehicle Insurance | Yes (legal) | £600-2,000+/year |
| Employers' Liability | Yes (if you have staff) | £50-150/year |
| Equipment/Contents | Recommended | £100-300/year |
| Stock Insurance | Optional | £50-150/year |
| Business Interruption | Optional | £100-300/year |
Track insurance renewals
VendorPad reminds you before insurance policies expire, so you never accidentally trade without cover. Keep all your certificates in one place and share them instantly with venues.
Get Early AccessWhat You Can Probably Cut
If you're looking to reduce costs, these are the first places to look:
- Over-insurance: If you're insured for more than your equipment is actually worth, reduce the cover
- Duplicate cover: Check if your home contents policy already covers some business equipment
- Unnecessary add-ons: Legal expenses cover sounds useful but is rarely worth the premium for small vendors
- Staff cover you don't need: If you're truly solo with no helpers, you don't need employers' liability
Red Flags When Buying Insurance
Watch out for:
- Policies that don't cover events: Some business policies exclude festivals, weddings, or outdoor events. Read the small print
- Geographic restrictions: Make sure you're covered wherever you trade, not just your home address
- Exclusions for specific equipment: Gas appliances and generators sometimes need explicit inclusion
- Claims-made vs occurrence policies: Claims-made only covers claims reported during the policy period, which can leave gaps
Final Thoughts
Insurance is one of those costs that feels like wasted money—until you need it. The goal isn't to minimise insurance spend at all costs. It's to have the right cover at a fair price.
Know what each policy covers. Understand what you actually need. Shop around annually. And never, ever trade without public liability—the venues will ask, and one claim without it could end your business.
