Insurance Requirements for Craft Fairs — Hosts and Vendors

The three insurance layers

A craft fair typically involves three separate insurance layers:

• Venue insurance — The venue (village hall, community centre, field) will have its own public liability insurance covering the premises. This does NOT cover the activities of event organisers or stallholders using the venue.
• Host/organiser insurance — The event host needs public liability insurance covering their role as organiser. This protects against claims arising from the event itself — crowd management, layout, signage, general safety.
• Stallholder insurance — Individual vendors need their own public liability insurance (and ideally product liability insurance) covering their stall, their products, and their interactions with the public.

These layers are separate. The venue's insurance does not protect the host. The host's insurance does not protect individual stallholders. If you assume someone else's insurance covers you, you may find out the hard way that it does not.

What stallholders and food vendors need

Public liability insurance (PLI) is the baseline. It covers claims from members of the public who are injured or whose property is damaged as a result of your stall or activities. Most event organisers require vendors to hold a minimum of £2 million PLI, though many require £5 million or £10 million. Always check the specific requirements of each event before booking.

Product liability insurance covers claims arising from products you have sold — for example, a customer has an allergic reaction to a food product, or a candle causes a fire after purchase. Many craft insurance policies bundle product liability with PLI.

Employers' liability insurance is required by law if you have employees, including temporary or part-time helpers. If you are a sole trader working alone, you do not need it.

Stock and equipment cover is optional but advisable — it covers your stock and display equipment against theft, damage, or loss in transit and at events.

Typical costs: annual craft insurance from specialist providers starts from approximately £60-£100 per year for £5 million combined public and product liability. Single-day policies are available from around £25-£30 for one event.

What event hosts need

Public liability insurance is essential for event hosts. It covers claims from attendees, stallholders, or members of the public arising from the event. Cover levels typically start at £5 million for smaller events and go up to £10 million for larger ones. Your venue hire agreement or local authority event licence conditions will usually specify the minimum.

Employers' liability insurance is required if the host has any employees. It may also be needed if volunteers could be considered to have a contract of employment — this is a grey area, so check with your insurer.

Cancellation insurance is optional but worth considering — it covers irrecoverable costs if the event is cancelled due to adverse weather, venue problems, or other covered reasons.

Host insurance is significantly more expensive than stallholder insurance because it covers a larger number of people and a wider range of risks. Costs vary based on expected attendance, venue type, and activities. Single-event policies are available if you only host occasionally.

How to check insurance is valid

If you are an event host checking stallholder insurance:

• Ask for a copy of the certificate of insurance — not just a receipt or confirmation email.
• The certificate must show the cover amount, the policy period, and the stallholder's name or business name.
• Check the policy dates — expired policies are worthless.
• Check the cover amount matches your requirements.
• If in doubt, ask the stallholder to contact their insurer and have them confirm the cover directly.

If you are a stallholder:

• Keep a digital copy of your certificate on your phone and a printed copy in your stall kit.
• Some event hosts ask for a copy when you confirm your booking; others check on the day.
• Make sure your policy is renewed before it expires — a lapse in cover, even for a few days, means you are uninsured.

Common gaps in cover

• Assuming the venue's insurance covers you — it does not. The venue's PLI covers the premises, not your event or your stall.
• Not checking the required cover level — some events require £10 million PLI, and a £5 million policy will not be accepted.
• No product liability — if you sell physical products, PLI alone may not cover claims arising from those products after the customer takes them home.
• Expired policies — an insurance certificate from last year is not valid. Check renewal dates.
• No cover for specific activities — some policies exclude food preparation, use of LPG gas, or certain high-risk products. Check the policy wording, not just the headline.
• Volunteers — if you use volunteers at your event, check whether your policy covers them. Some do, some do not.