Catering Insurance UK: Public Liability, Product Liability and Food Business Cover

Most venues require proof of public liability insurance before a caterer sets foot on site. Beyond the venue requirement, the right cover protects you from claims that would otherwise come directly out of your pocket — a guest with an allergic reaction, a burn from spilled equipment, or a cancelled event leaving a client out of pocket.

This guide covers the core policies UK caterers need, what each covers, and what typical premiums look like.

Public liability insurance

Public liability (PL) is the non-negotiable. It covers claims from third parties — clients, guests, venue staff — for injury or property damage arising from your catering operation.

What it covers:

• A guest slipping on a wet surface near your buffet station
• A guest claiming illness from food you served
• Accidental damage to the venue during setup or service
• Personal injury to a member of the public during your work

Most venues require a minimum of £2 million cover; many specify £5 million. Event caterers working at larger venues (hotels, corporate venues, outdoor marquees with significant infrastructure) should check venue requirements before purchasing, as some specify £10 million.

Typical annual premiums for sole-trader caterers with £2 million cover range from £150 to £400, depending on your turnover, number of events, and whether you handle high-risk activities (open-flame cooking, alcohol service, large guest numbers).

Product liability insurance

Product liability covers claims arising specifically from food or drink you have supplied. It is sometimes bundled with public liability in a combined policy for food businesses; sometimes sold separately.

The key distinction from PL: product liability covers claims after the food leaves your hands — a packed lunch delivered to a client's office, a meal you prepared for an event two weeks ago, a batch of canapés supplied to a corporate client. If a guest becomes ill from your food after the event, product liability is the relevant cover.

For caterers, a combined public and product liability policy makes sense. Most specialist food business insurers offer these as standard. Confirm the combined limit before purchasing — some policies have a separate, lower limit for product claims.

Employers' liability insurance

As soon as you employ anyone — staff on the day, casual helpers — you are legally required to carry employers' liability insurance, and the minimum cover is £5 million. The duty is in the Employers' Liability (Compulsory Insurance) Act 1969, but the Act itself names no figure: section 1(2) leaves the amount to regulations, and regulation 3(1) of the Employers' Liability (Compulsory Insurance) Regulations 1998 sets it at "not less than £5 million" for "a claim relating to any one or more of those employees arising out of any one occurrence" plus the costs of that claim. GOV.UK states the same figure as cover "for at least £5 million".

The duty does not stop at the Great Britain border. Section 1(1) of the 1969 Act binds "every employer carrying on any business in Great Britain", which is why GOV.UK's exemption list includes "someone who is based outside of England, Scotland and Wales". That is guidance written to a Great Britain statute — not a statement that a caterer in Belfast employing Belfast staff needs no cover. Northern Ireland has its own parallel requirement: article 5 of the Employer's Liability (Defective Equipment and Compulsory Insurance) (Northern Ireland) Order 1972 requires "every employer carrying on any business in Northern Ireland" to insure and maintain insurance in equivalent terms — the GB Act covers "bodily injury or disease" and the NI Order "personal injury", so the wording differs even though the practical effect for a caterer is the same. HSE adds the practical point for anyone working across the border — if you have employees working in the Isle of Man, Jersey, Guernsey or Northern Ireland as well as in England, Scotland or Wales you can use the same certificate in all locations, but "you must check that this complies with any local requirements as well as the law in Great Britain".

The family exemption is narrower than it reads, and it is not a closed list of two. GOV.UK says you do not need cover if you only employ "a family member" (spouse, civil partner, parent, grandparent, step-relation, child or sibling). HSE's guide to the Act qualifies it: the exemption covers "family businesses, ie if all of your employees are closely related to you", but "this exemption does not apply to family businesses which are incorporated as limited companies". A limited-company caterer whose only employee is a spouse needs the cover. HSE names a further exemption for "companies employing only their owner where that employee also owns 50% or more of the issued share capital in the company", and notes that others are listed at section 3(1)(a) and section 3(1)(b) of the 1969 Act and Schedule 2 to the 1998 Regulations.

Whether someone counts as an employee turns on the substance of the relationship rather than the label. HSE's guidance to the Act says you may need cover where "you deduct national insurance and income tax from the money you pay them", where "you have the right to control where and when they work and how they do it", or where "you supply their work materials and equipment" — and that you may not need it where they "do not work exclusively for you (for example, if they operate as an independent contractor)" and "supply most of the equipment and materials they need to do the job". A casual you roster, brief and equip for a service is very likely an employee for this purpose even if they invoice you. HSE also warns that "even if someone is self-employed for tax purposes they may be classed as an employee for other reasons", so if you have any doubt, check rather than assume.

Operating without required employers' liability cover can result in a fine of up to £2,500 per day.

Equipment and contents insurance

Commercial catering equipment is expensive to replace. If you own ovens, bain-maries, chafing dishes, serving equipment, or a catering van, contents or equipment insurance covers loss, theft, and accidental damage.

Standard home contents insurance does not cover equipment used commercially. If you store catering equipment at home, you need either a specialist food business policy that includes equipment cover, or a separate commercial contents policy.

For caterers working from hired kitchens, check what the kitchen operator's insurance covers. Most kitchen hire agreements require you to carry your own contents insurance for your equipment — their policy covers the building and fixtures but not your kit.

What to check before buying

Confirm the activities are covered. Not all food business policies cover every catering type. Outdoor events, alcohol service, high-risk cooking methods (hog roasts, deep-fat fryers, wood-fired ovens), and events exceeding a certain guest count may require endorsements or exclusions. Read the policy schedule carefully.

Check territorial cover. If you cater for events outside England (Scotland, Wales, Northern Ireland, or overseas), confirm the policy covers those territories.

Confirm the level of cover is sufficient for your venues. Collect venue requirements for your regular locations. Some corporate venues and large estate venues specify minimum levels above standard.

Certificates. Keep digital copies of your certificate accessible — venues typically ask for proof before you arrive. A certificate from your insurer (not just a policy document) is usually what is required.

Typical annual costs

These are indicative ranges based on publicly available market data for sole-trader UK caterers. Actual premiums vary by insurer, turnover, event profile, and claims history.

Cover type	Typical annual premium
Public liability (£2m cover)	£150–£400
Public + product liability combined	£200–£600
Employers' liability (add-on to combined)	£50–£200
Equipment cover (£10K contents)	£100–£350
All-in package (combined PL/ProdL + EL + equipment)	£350–£1,000

Premiums at the lower end typically apply to sole traders running private dinner parties and small events. Higher-end premiums reflect higher revenue, larger events, or cover for high-risk activities.

Building insurance costs into your pricing

Insurance is a direct business overhead that should be factored into your pricing. For most caterers running 50-100 events per year, annual insurance costs work out to £5-15 per event. That is a direct line on your event cost sheet alongside ingredients, kitchen hire, and travel.

If you are just starting out, cost your insurance on a per-event basis when quoting for early bookings. For the full cost structure including insurance as an overhead, the catering profit margins guide breaks down where the money typically goes across all cost categories. Once you are running a full schedule, it becomes a fixed overhead you amortise across the year rather than pricing per event.

For caterers starting out in the UK, our starting a catering business guide covers the other licences and registrations needed alongside insurance.

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This guide provides general information about business insurance for UK caterers. Insurance requirements, policy terms, and pricing vary. Always read your policy schedule in full and consult a regulated insurance broker or the Financial Conduct Authority register if you need advice on the right level of cover for your circumstances. This is not financial or legal advice.

Sources

• Employers' liability insurance — GOV.UK
• Employers' Liability (Compulsory Insurance) Act 1969, s 1 (extent: England, Wales and Scotland) — legislation.gov.uk
• Employers' Liability (Compulsory Insurance) Regulations 1998, reg 3 (the £5 million limit) — legislation.gov.uk
• Employer's Liability (Defective Equipment and Compulsory Insurance) (Northern Ireland) Order 1972, art 5 — legislation.gov.uk
• Employers' Liability (Compulsory Insurance) Act 1969: a guide for employers (HSE40) — HSE