For caterers
Catering Insurance: £5m Public Liability and What Is Law
Employers' liability is a legal duty once you employ staff, at £5m minimum. Public liability is not law, but venues expect £5m. What each one covers.
What insurance does a caterer need?
Only one kind is a legal requirement: employers' liability insurance, once you employ anyone, with at least £5 million of cover from an authorised insurer. Going without it can bring a fine of up to £2,500 for each day you are not insured. Public liability insurance is not required by law, but almost every venue, event organiser and council asks for it, and £5 million of cover is the figure most often requested; some larger events and public sites ask for £10 million. Product liability, which covers illness or injury caused by the food itself, is usually sold together with public liability for caterers.
Employers' liability: who counts as an employee?
Anyone you employ, including casual and part-time event staff, can bring the duty into play. Family businesses where every worker is a close family member, and some one-person limited companies where the only employee owns most of the company, can be exempt. The rules have some fine print, so check the Health and Safety Executive's guidance if you are unsure. Keep the certificate available, as you can be fined for failing to produce it when asked.
Public and product liability
Public liability covers claims from members of the public for injury or property damage caused by your business, such as a guest tripping over a cable or a van damaging a lawn. Product liability covers claims arising from the food you supply, such as food poisoning. For a caterer the two go together, and policies aimed at caterers generally include both. Venues usually ask to see the certificate before the event.
What else is worth considering?
Vehicle insurance for business use of a van, and a separate policy or an extension for a catering trailer. Equipment and stock cover, including stock in transit and in a freezer at home. Business interruption, if a breakdown or fire would stop you trading. Personal accident or income protection, if you are a sole trader and cannot work. Event cancellation, if you pay pitch fees in advance. Which of these is worth buying depends on how much you have at risk.
How much does it cost?
Premiums depend on turnover, staff numbers, the kind of catering, whether you use LPG, claims history and the level of cover. Quotes for a small sole trader's public and product liability commonly start in the low hundreds of pounds a year, and rise with turnover, staff and risk. Trade associations and specialist brokers offer policies aimed at mobile and event caterers; compare what is covered, not just the premium.
What do insurers ask about?
Whether you use LPG or deep fat fryers, your food hygiene rating and training, whether your gas appliances have a current safety check, turnover, staff, the kind of events you cater, and any claims. An insurer may decline or exclude cover if gas equipment has not been checked by a qualified engineer, so keep the paperwork.
Common questions
Is public liability insurance a legal requirement for caterers?
No, but most venues, events and councils require it, commonly at £5 million of cover.
Is employers' liability insurance a legal requirement?
Yes, once you employ staff, with a minimum of £5 million of cover, subject to limited exemptions such as some family businesses.
What is product liability for caterers?
Cover for claims arising from the food you supply, such as illness. It is usually bundled with public liability in caterers' policies.
Do I need £5 million or £10 million public liability?
£5 million is the common request. Some large events, public land and corporate clients ask for £10 million; check each organiser's terms.