Liability Insurance for Mobile Catering: What You Need and Why
If someone gets food poisoning from your burger, trips over your cable, or a member of the public gets hurt near your setup, you could be facing a compensation claim that runs into thousands. Liability insurance is what stands between you and a bill that could finish your business before it's properly started. Here's what you actually need.
Public Liability Insurance (PLI)
This is the one everyone asks about first, and for good reason. Public liability insurance covers you if a member of the public is injured or their property is damaged because of your business. That could be a customer who slips on a wet patch near your serving hatch, a child who burns themselves on your counter, or someone who trips over your power cable at an event.
Most mobile caterers go for £5 million of public liability cover. That might sound like a lot, but it's what most councils and event organisers require before they'll let you trade. Some larger events and festivals ask for £10 million. If you're planning to do events, check what the organisers need before you buy your policy.
Public liability typically costs between £150 and £300 a year for a sole trader with £5 million cover. That's less than a pound a day to protect yourself from a claim that could bankrupt you.
Product Liability Insurance
This is the one that matters most to anyone handling food. Product liability covers you if someone becomes ill or is injured because of something you sold them. In mobile catering, the big risks are food poisoning, allergic reactions, and foreign objects in food.
Imagine you serve a chicken burger that isn't cooked through properly, and a customer ends up in hospital. Or someone with a nut allergy has a reaction because of cross-contamination in your setup. These things happen, and when they do, the legal costs alone can be eye-watering even before any compensation is paid out.
Most policies bundle product liability in with your public liability cover, so you'll often see them quoted together. Make sure yours does — if product liability isn't included, you're exposed to the biggest risk you face as a food business.
Employers' Liability Insurance
If you have anyone working for you — even one person, even part-time, even casual staff who help out at the odd event — you are legally required to have employers' liability insurance. This isn't optional. It's the law, and if you're caught without it, the fine is £2,500 for every single day you're not insured.
Employers' liability covers claims from employees who are injured or become ill because of their work. That could be a burns injury from a fryer, a slip on a greasy floor, or even a back injury from lifting heavy equipment. The minimum legal requirement is £5 million of cover, and most policies offer £10 million as standard.
If you're a sole trader working completely on your own with no helpers at all, you don't need employers' liability. But the moment you take on anyone — a family member, a mate who helps out on Saturdays, a casual worker at Christmas markets — you need it. No exceptions.
Do I Really Need All Three?
It depends on your setup. If you're a sole trader working alone, you need public liability and product liability at a minimum. Most councils won't give you a street trading licence without PLI, and most event organisers won't book you without it either.
The moment you take on staff, employers' liability becomes a legal requirement on top of that. In practice, most mobile caterers end up needing all three within their first year or two, especially once they start doing events and markets where having helpers makes the difference between coping and chaos.
What Liability Insurance Doesn't Cover
Liability insurance protects you against claims from other people. It doesn't cover your van, your equipment, or your stock. If your fryer breaks, your van gets stolen, or your stock goes off because of a power cut, that's a separate claim under vehicle insurance or equipment cover.
It also doesn't cover you for deliberate acts or criminal behaviour. If an EHO finds you've been ignoring food safety rules and someone gets ill, your insurer might refuse the claim. Keep your hygiene standards up, keep your paperwork in order, and your insurance will be there when you need it.
Real-World Claims: What Actually Happens
I've been in mobile catering for over 20 years, and I've seen a few claims play out. The most common ones aren't dramatic — they're things like a customer tripping over a guy rope, a child touching a hot surface, or someone claiming they got a dodgy stomach after eating at a van.
Even if the claim goes nowhere, the legal costs of defending yourself can run into thousands. That's what your insurance pays for. It's not just about the big payouts — it's about having someone in your corner when a solicitor's letter lands on your doormat.
How Much Does Liability Insurance Cost?
For a sole trader with no employees, you're looking at roughly £150 to £300 a year for combined public and product liability at £5 million cover. If you add employers' liability, expect to pay £250 to £500 a year for the full package depending on how many staff you have.
The exact price depends on what you're cooking, where you trade, how many events you do, and your claims history. Deep frying pushes the price up. Trading at large public events pushes it up. A clean claims record brings it down.
Shop around and get at least three quotes from specialist catering insurers. A broker who understands the mobile catering industry will usually find you a better deal than going direct to a single insurer.
Frequently Asked Questions
Do I need public liability insurance for a market stall?
Almost always, yes. Most market organisers require you to show proof of public liability insurance before they'll let you trade. Even if it's not required, it's strongly recommended. A claim from a customer at a busy market could cost you far more than the premium.
Does public liability cover food poisoning?
Food poisoning claims are typically covered under product liability, not public liability. That's why you need both. Most policies bundle them together, but check your documents to make sure product liability is included.
Do I need employers' liability for family members who help out?
If they're working for you in any capacity, yes. The only exception is if they're a close family member living with you and working in your business. The rules are specific, so check with your insurer. It's safer to have the cover than to assume you don't need it.
What happens if I don't have liability insurance?
If someone makes a claim against you and you're not insured, you pay everything out of your own pocket — legal fees, compensation, the lot. For employers' liability, there's also a fine of £2,500 per day. Most councils and event organisers won't let you trade without proof of insurance anyway.
Can I get liability insurance if I'm just starting out?
Yes. You don't need trading history to get a policy. Insurers cover new mobile catering businesses every day. Your premium might be slightly higher in the first year because you don't have a claims history, but it's still affordable and absolutely essential from day one.
Free Tools for Mobile Caterers
Insurance is one part of getting set up properly. The free MobCater App has a 12-step startup guide, pricing calculator, equipment guides and more — everything you need to get your catering business running right.
No cost for Free Start-up Guide. Built from real user experience.
Return To Mobile Catering (Home) From Catering Liability Insurance