Why do farm shops need insurance?
A problem product
Your signature farm product is known for its quality. That’s why customers travel for miles to your shop. Maybe it’s your free-range Christmas turkeys. It could be the organic milk that makes delicious summer shakes. Or even raw honey from local beekeepers.
When one of your suppliers says there’s a contamination issue, you put up a product recall notice. Still, it’s hard to reach every customer. If someone gets sick, they might sue your business. Products liability insurance can help your farm shop to withstand the costs.
Shopkeeper injuries
Farm shops often need staff to work at their best. Prime cuts of beef don’t slice themselves, and someone needs to organise fresh vegetable deliveries. It’s a busy environment.
When your apprentice drops a dozen eggs, they rush to clear the mess without putting up a wet floor sign. A moment later, your shopkeeper slips, hitting their head on the deli counter. Despite treatment, they sustain long-term vision problems. Employers’ liability insurance protects your farm shop from the impact of legal action.
Stock theft
They say the early bird catches the worm. But even early risers might not catch thieves in the act. One morning, you arrive to find your storeroom has been raided. Meat freezers lie empty, fridges overturned. Overnight, you lose stock worth thousands.
Fortunately, your farm shop has stock cover as part of its business contents insurance. While you clean up, we can help pay for your losses.
What insurance is available for farm shops?
Public liability insurance
Public liability insurance helps to protect farm shops from third-party injury claims. It can also help if someone from outside your business suffers property damage, and they say you’re to blame. For instance, a customer or supplier might trip on a sandwich board outside your shop.
This cover can help with legal fees if you need to go to court and compensation if you’re ordered to pay it. Add products liability insurance to get similar protection relating to farm shop products.
Employers’ liability insurance
Employers’ liability insurance can safeguard your farm shop from the impact of lawsuits from staff. If you employ anyone else – even part-time – you are responsible for their welfare at work. Knives, heavy loads and busy environments all create hazards in farm shops.
Any business with staff will need this insurance by law (external link) (there are some exceptions). In the event of a work-related illness or injury, it can help to defend your business in court.
Business contents insurance
Business contents insurance helps to protect what’s inside your farm shop premises. From your till to your meat-mincing machine, you’ve made big investments over the years. Following loss, damage or theft, you might struggle to fulfil orders. Business contents insurance can step in to pay for quick repairs or replacements. If there’s damage to glass, it can also help restore your shop front.
You might also add commercial building insurance if you own your farm shop building. This cover protects your business from the impact of damage to the building itself. Say, from fire, flood or storm.
With Hiscox, business insurance is tailored. Some farm shops may also add cyber insurance or legal protection insurance. There’s personal accident cover for times when a key person is injured. Plus, equipment breakdown insurance in case a machine suffers a mechanical or electrical fault.
We can help to build a tailored insurance quote.
Build my coverInsurance for farm shops: FAQs
What insurance do you need for a shop?
For a shop, you might need public liability insurance. Shops, including farm shops, are busy locations. If customers slip or trip on your premises, you could be held liable for injuries. Without insurance, you might need to pay compensation yourself.
Products liability insurance can also be relevant for a shop. This protects you financially if a faulty or contaminated product causes illness. It might be a farm shop product, such as meat, cheese or bread.
Your shop might also need employers’ liability insurance by law if it employs staff.
Can you cover other parts of my farm shop business?
If you run both a farm shop and a farm, Hiscox can only cover the retail side of your business. We do not currently offer business insurance to farms.
However, there might be other parts of your work we can help to insure.
We can help if your farm shop also has:
- A café or tea room
- A catering service
- Educational services, such as lambing days.
These activities come with their own set of risks. Tell us about the other work you do, and we can build a business insurance quote to meet your farm shop’s needs.
What does farm shop public liability insurance cover?
Public liability insurance can cover a farm shop for legal fees and compensation payouts. This applies if someone outside your business – like a customer, courier, or supplier – is injured on-site. It can also act if someone sustains property damage, and they say your business is to blame. For instance, if a visitor trips on uneven flooring and drops their mobile phone.
Public liability insurance can cover up to £10 million for legal fees. It can also help to pay compensation and court attendance fees. This can pay up to £250 per day if a director is summoned to court as part of a claim.
How can business insurance respond to problems with a farm shop product?
Business insurance can act as a safeguard if you sell farm produce. Or if you process, bake or pack farm-fresh food items.
As a food merchant, you could be held liable if you sell something that makes someone ill.
For instance:
- A local farm whose chickens you supply could suffer an outbreak of salmonella
- Your assistant could mislabel a freshly baked cake, causing an allergic reaction in one of your customers.
Products liability insurance, which is included with public liability cover, can help offer financial help if your farm shop faces legal action.
How much is product liability insurance for a small business in the UK?
For a small business in the UK, public and products liability insurance costs start at £5.50 per month with Hiscox*.
Products liability insurance is included, so you’ll buy it as part of your public liability policy.
*Figures based on an average of all public liability policies sold to at least 10% of our customer base between April 2023 and April 2024
Can business insurance cover my farm shop at markets and trade fairs?
Yes, business insurance can cover your farm shop business on the go. This includes activities at markets and trade fairs. For instance, if you have public liability insurance, this can also cover accidents at your temporary stand.
If you take equipment to markets and fairs, you might need extra cover for this. Portable equipment insurance covers property away and in transit.
Does business insurance cover lost stock if my freezer breaks down?
Yes, business contents insurance can cover accidental damage to farm shop stock. This includes perishable items thawing due to a faulty freezer or power cut. You must keep us updated on the total value of your farm shop stock for this to apply.
Note that you’d need an extra cover – equipment breakdown insurance – for help with freezer repairs in such a scenario. This product can step in if your appliances stop working due to an electrical or mechanical malfunction but not due to wear and tear.
Related articles and guides
What is personal accident insurance?
In a farm shop, key people can be important. Explore how personal accident insurance works in this FAQ guide.
What is an excess?
You might be familiar with excesses from other insurance policies you hold. But how does an excess apply to business insurance for your farm shop?
How shop insurance can help protect stock
Read about how a London-based shoe shop claimed for lost retail stock. It’s one of our real-life claims stories.