Public Liability Insurance: What It Covers (And What It Doesn't)

You've got public liability insurance, but do you actually know what it covers? If someone slips and falls at your event, are you covered? Here's what your insurance actually protects—and what it doesn't.

Why Public Liability Insurance Matters

Public liability insurance protects you if someone is injured or their property is damaged because of your business activities. Without it, you'd personally be liable for compensation claims that could run into hundreds of thousands of pounds.

For mobile vendors, this isn't optional. Most venues, event organisers, and markets require proof of public liability insurance before they'll let you trade. It's a basic requirement of operating professionally.

But having insurance isn't the same as understanding it. Many vendors pay their premiums without really knowing what they're covered for—or more importantly, what they're not covered for.

What Public Liability Insurance Covers

Public liability insurance typically covers claims arising from:

Third-Party Injury

If a member of the public is injured because of your business activities, your insurance covers the compensation claim and legal costs. Examples include:

• A customer slips on a wet floor near your stall
• Someone trips over your cables or equipment
• A guest burns themselves on your equipment
• Part of your setup falls and injures someone

Third-Party Property Damage

If you damage someone else's property while working, you're covered. This could include:

• Damaging a venue's flooring or walls
• Your equipment damaging a client's property
• Accidentally breaking something at an event
• Staining or marking surfaces

Legal Costs

Defending against a claim is expensive even if you're not at fault. Your policy covers legal fees, court costs, and any compensation awarded against you, up to your policy limit.

What Public Liability Insurance Doesn't Cover

This is where many vendors get caught out. Public liability has significant gaps:

Product Liability

If someone gets food poisoning from your food, that's typically not covered by public liability insurance. You need separate product liability cover for claims arising from products you sell or serve. For food vendors, this is essential.

Employers' Liability

If you have any employees—even casual staff for busy events—you need employers' liability insurance. This is a legal requirement in the UK. Public liability doesn't cover injuries to your own staff.

Your Own Equipment

If your equipment is stolen, damaged, or breaks down, public liability won't help. You need separate equipment or contents insurance to protect your own assets.

Vehicle Cover

Your food truck or van needs commercial vehicle insurance. Standard car insurance doesn't cover business use, and public liability doesn't cover vehicle-related incidents.

Professional Advice

If you give advice that causes a client financial loss—unlikely for most caterers, but possible—that's professional indemnity territory, not public liability.

How Much Cover Do You Need?

Public liability policies are sold with coverage limits—typically £1 million, £2 million, £5 million, or £10 million. The premium difference between levels is often surprisingly small.

For most mobile vendors:

• £5 million is the practical minimum. Most venues require this level
• £10 million is worth considering if you work larger events or corporate clients
• £1-2 million policies exist but may limit which venues will book you

Don't choose a policy based solely on the lowest premium. Inadequate cover could leave you personally liable for the difference if a claim exceeds your limit.

Getting the Right Policy

When shopping for insurance, look for policies designed for mobile caterers or food vendors. Generic business policies might not cover your specific activities.

Specialist Insurers

Companies like Mobilers Insurance, Food Trader Insurance, and Insuremycatering specialise in mobile food businesses. They understand the industry and their policies are tailored accordingly.

Combined Policies

Many insurers offer combined policies that include public liability, product liability, and employers' liability in one package. This is often more cost-effective and ensures you don't have gaps between policies.

Read the Small Print

Check what activities are covered. Some policies exclude certain equipment (like LPG), certain event types, or have geographic restrictions. Make sure your policy covers everything you actually do.

Common Mistakes to Avoid

Letting Cover Lapse

Set reminders for renewal dates. Operating without valid insurance—even for a day—exposes you to personal liability and likely breaches venue contracts.

Underestimating Turnover

Many policies are priced based on your annual turnover. If your business grows and you don't update your insurer, your policy might be invalidated. Always declare your turnover accurately.

Assuming You're Covered

If you start offering new services—like adding a bar to your catering, or doing deliveries—check whether your policy covers these activities. Don't assume; ask your insurer.

Not Having Certificates Ready

Venues often ask for proof of insurance at short notice. Keep your certificate of insurance easily accessible—digital copies on your phone and backed up in the cloud.

If Someone Makes a Claim

If an incident occurs:

• Document everything: Take photos, get witness details, write down exactly what happened
• Don't admit liability: Be sympathetic but don't say "it was my fault" or similar
• Report to your insurer immediately: Most policies require prompt notification
• Cooperate fully: Provide all information your insurer requests

Your insurer will investigate and handle the claim. That's what you're paying for.

Final Thoughts

Public liability insurance is a foundation of running a professional mobile catering business. But it's not a complete solution—you likely need product liability and possibly employers' liability too.

Take time to understand what your policy covers and what it doesn't. The annual premium is a small price compared to the financial devastation an uninsured claim could cause. Get the right cover, keep it current, and keep your certificates ready to share when clients and venues ask.