All companies need some form of insurance to protect their finances, trade and reputation from claims; and it's no different for market traders.

However, choosing the right policy is more than just about getting cheap premiums. Instead you should base your cover on your company's needs.

What insurance do I need as a market trader?

Market traders public liability insurance

Market trader liability insurance should be central to your business insurance policy, so remember to base the level of cover you request on your day in, day out business. Liability insurance pays out on third party claims for illness, injury or loss off/damage to possessions.

So, judge the level of risk your business is exposed to and compare market trader public liability insurance cover limits accordingly. If you put up your own trading stalls then you'd be liable for any injury they cause; on the other hand if you rent permanent stands then this should be covered by the market's insurance.

Similarly, consider what you sell. Contaminated foodstuffs can cause claims that run into the millions of pounds, depending on severity. You should choose a public liability insurance market trader cover level that can meet any healthcare costs, loss of income and additional costs claimed against you.

Employers liability insurance

Employers insurance extends the same type of illness, injury and possessions cover to your staff as well, with additional provision for workplace disputes or dismissal. So, consider how many people (if any) you employ, set a suitable cover level for your business, and exclude any providers which can't offer that cover.

Goods in transit insurance

Some providers don't offer market traders goods-in-transit cover, so if it's important restrict your search accordingly. The higher the individual values of your goods, the more important this protection could be so that their loss won't cause so much damage your income.

Once you've considered your risk in each area, compare the policies available and get a quote from each suitable insurer to get the cheapest public liability insurance for market traders together with a policy that meets your business needs.