Public liability insurance for sole traders covers your legal liability if your work injures someone or damages their property. It is usually what a council, market organiser, landlord or event organiser means when they ask for proof of insurance before you trade. business.gov.au notes that only some occupations need it by law, but a permit or stallholder agreement can make it a condition of entry. The organiser sets the limit, and you prove the cover with a certificate of currency.
Who asks for it, and why a sole trader feels it most
The request usually comes before you are allowed to trade. A council issuing a street trading or event permit, a market organiser taking stall bookings, a landlord leasing you a studio or shopfront, an event organiser, or a client whose home or premises you work in. Each of them could be drawn into a claim if a member of the public is hurt, so they want to see that a policy sits behind you.
The City of Melbourne is a clear example. Its guidance says anyone applying for a permit to conduct an activity in municipal public space, such as street trading or an event, must have public liability insurance and supply a copy of the certificate of currency. business.gov.au makes the same point for markets: many market organisers require you to insure your stall.
The stakes are personal for a sole trader. There is no company between the business and you, so a claim for a customer’s injury is a claim against you and your own assets.
The limit is set by whoever is asking
There is no single figure for every market or permit. The organiser, council or landlord writes the limit into its conditions, and you need to meet the highest one among the places you trade. The City of Melbourne, for instance, requires all of the following before it issues a permit:
- Cover of at least 20 million dollars for a single claim.
- Public and products liability, or general liability, matched to the activity.
- The applicant named on the certificate as the insured.
- The City of Melbourne named as an interested party.
- An insurer on the APRA register of authorised insurers, or an approved alternative.
- A certificate kept current for the life of the permit.
Other councils and private markets set their own terms. Read the stallholder conditions for each market before you buy, because raising a limit or adding an interested party after the policy starts needs the insurer to endorse it, and that takes time. For a fuller look at choosing a figure, see our article on how much public liability insurance you need.
Products liability matters if you sell goods
Public liability covers injury and damage caused by your activities, such as a customer tripping over a gazebo weight or a table collapsing onto someone. Goods you sell are a different risk. business.gov.au says stallholders may need both public liability and product liability insurance, and that food stalls face extra obligations under the food safety standards. Candles, skincare, toys, homemade food and anything electrical all carry product risk once they leave your table.
Public liability insurance for market stalls is commonly written as a combined public and products liability policy. Check that the products section is there, and that the description of what you sell matches your actual range. Our article on product liability vs public liability explains how the two sections differ.
One day cover or an annual policy
Both exist. Some insurers sell cover for a single event or a set number of trading days, and others write an annual policy for the activities you declare. Which suits you depends on how often you trade and what else you do. A few points apply either way:
- The policy dates must cover the event dates, including set up and pack down. business.gov.au specifically warns stallholders to check that set up and pack down time is included.
- The activity described on the policy has to match what you do on the day.
- If the market includes insurance in the registration fee, business.gov.au suggests you understand exactly what it covers. You can take out your own cover as well.
- A sole trader who also does other work, such as cleaning, gardening or mobile services, usually needs that work declared too. A stall only policy will not respond to it.
The certificate the organiser checks
Proof of public liability insurance for sole traders is a certificate of currency. Organisers check the insured name, the limit, the policy period and the activity. For a sole trader the insured should be your own name, which business.gov.au confirms is a sole trader’s legal name, with your business name alongside it if you use one. Our guide to what a certificate of currency shows covers the common reasons certificates get rejected. Diarise your renewal date and send the new certificate to every market that holds the old one.
What public liability does not cover
It pays for other people’s injuries and property, not yours. business.gov.au notes that workers compensation does not cover a sole trader, and points to accident and sickness insurance for loss of income while you recover. That cover is set out on our personal sickness and accident insurance page. Your own stock, gazebo and payment terminal also sit outside public liability. Portable equipment cover, which business.gov.au describes as cover for tools and equipment you take with you, is the usual answer for those.
What FRS does
We read the stallholder conditions, permits and leases you trade under, set one limit that satisfies all of them, and check that the products section and the activity description match what you actually sell and do. We arrange certificates with the right interested parties named, and we review the policy when you add markets, products or new work.
For wordings, limits and certificates, see our public liability insurance page.
Frequently asked questions
Do sole traders legally need public liability insurance?
Not as a general rule. business.gov.au says some states and territories require it for certain occupations. For most sole traders it becomes compulsory through a contract, lease, council permit or market booking. A sole trader is personally responsible for the business, so a claim without cover is paid from your own money and assets.
Does the market's own insurance cover my stall?
Sometimes, but only on its own terms. Some established markets include insurance in the registration fee. business.gov.au suggests you find out exactly what it covers before relying on it, and you can take out your own policy as well. Ask whether it covers products you sell, your set up and pack down time, and other markets.
Is one day public liability insurance for market stalls enough?
It can be, if you trade rarely and the policy dates cover the whole event, including set up and pack down. Regular stallholders often find an annual policy simpler, since each certificate then covers every market on the calendar. Check that the limit meets each organiser’s conditions and that your products are declared.
Does public liability insurance for sole traders cover my own injuries?
No. Public liability pays for injury to other people and damage to their property. business.gov.au notes that workers compensation does not cover a sole trader and points to accident and sickness insurance, which can pay you a benefit for lost income while you recover. Consider both if your work is physical.
Questions about your own cover? Call 03 7046 3766 on weekdays between 9:30am and 6pm, or send us an enquiry.
