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The short answer
If your African food shop employs anyone outside close family, you must hold employers' liability insurance of at least £5 million from an authorised insurer from the day you become an employer; GOV.UK says the fine is £2,500 for every day without it and £1,000 for not displaying the certificate. Beyond that, most shops buy public liability, product liability (important if you import foods yourself), stock cover including fridge and freezer breakdown, and contents or buildings cover, often as one shop policy.
The one cover the law requires
GOV.UK says most employers must have employers' liability insurance as soon as they become an employer, with at least £5 million of cover from an authorised insurer. It pays for claims from employees who are injured or made ill at work, such as a shop assistant who slips in the cold room or strains their back lifting 25kg bags of rice or garri.
- Exemptions: you are exempt if you employ only close family members (spouse, civil partner, parent, child, grandparent, grandchild, sibling, including step- and half-relatives) or only people based outside England, Scotland and Wales.
- Penalties: £2,500 for each day you are not properly insured, and £1,000 for not displaying the certificate where staff can see it (at the shop, on a website or intranet) or failing to produce it for an inspector.
- Check the insurer: GOV.UK tells employers to confirm the insurer is authorised on the FCA register.
Covers most food shops choose
These are not required by the GOV.UK page above, but a landlord, lender or supplier may ask for some of them, and a single claim can close a small shop without them.
| Cover | What it is for in an African grocery |
|---|---|
| Public liability | A customer trips on a box of yams in the aisle, or a shelf falls on someone |
| Product liability | A customer becomes ill or has an allergic reaction to a product you sold, packed or imported yourself |
| Stock | Theft, fire or flood damage to stock; ask specifically about frozen fish, meat and other chilled goods |
| Deterioration of stock | Fridge or freezer breakdown or power cut spoiling frozen and chilled stock |
| Contents and shop fittings | Freezers, shelving, tills, scales, CCTV |
| Buildings | Only if you own the premises or the lease makes you responsible |
| Business interruption | Lost profit while the shop is closed after an insured event |
| Money | Cash on the premises or in transit to the bank |
| Goods in transit | Stock you collect from importers or deliver to customers |
Why product liability matters more for importers
Many African grocers buy direct from suppliers in Nigeria or Ghana and repack items such as egusi, crayfish, dried fish or spices. When you import or repack, you may be the first business in the UK supply chain, and a claim about the product may land on you rather than on a manufacturer abroad. Tell the insurer exactly what you import, repack or label, and check the policy covers it.
Questions to ask before you buy
- Does the stock cover include deterioration from fridge or freezer breakdown, and is there a time limit or excess?
- Are imported and repacked products covered under product liability?
- What security does the insurer require (shutters, alarms, CCTV) and will a claim fail if it is not used?
- Is stock covered while held at another address or in a van?
- Is there a limit for cash kept overnight?
- Does the policy cover seasonal peaks, such as higher stock before Christmas or Eid?
Other setup costs to plan alongside insurance
Insurance is one of several early costs. A food shop must register with the local authority at least 28 days before it starts trading; the GOV.UK registration page mentions no fee. In England, a shop whose only property has a rateable value of £12,000 or less can get 100% small business rate relief, with a taper between £12,001 and £15,000; see business rates relief for a small shop. If you also cook food to sell, read licences for a Nigerian restaurant.
Worked example
Example only. Kemi opens a grocery in Croydon, working with her husband and one paid assistant who is not family. Because of the assistant she needs employers' liability cover of at least £5 million from day one. She chooses a shop policy with public and product liability, stock including deterioration of frozen goods, contents and business interruption. Had she opened for ten days before arranging the employers' liability cover, the maximum fine under the GOV.UK rule would have been 10 × £2,500 = £25,000, far more than a year's premium.
Review cover every year, and whenever you add a freezer, a van, a second site or online delivery, since each changes the risk the insurer priced.
Where Pryme fits
Pryme does not sell insurance. Shops that pay suppliers in Nigeria can hold naira and pounds in a Pryme Business Account and pay with Send; the app shows the rate and the fee before you approve. A verifiable receipt with VerifyDoc.ai gives you a checkable record of a supplier payment if an insurer asks what stock you bought. Outside Nigeria, Pryme's services run through regulated partners.
Questions people ask
Is public liability insurance compulsory for a shop in the UK?
Not under the GOV.UK employers' liability rules, which cover staff. Your lease, landlord or local market may still require it.
Do I need employers' liability if my staff are family?
Not if you employ only close family as GOV.UK defines it. Anyone else on the payroll means you need it.
What is the fine for no employers' liability insurance?
£2,500 for every day you are not properly insured, and £1,000 for not displaying the certificate.
Does shop insurance cover a freezer breaking down?
Only if the policy includes deterioration of stock. Ask for it by name.
Sources
- GOV.UK: Employers' liability insurance · accessed Oct 2026
- GOV.UK: Register a food business (updated 25 Jun 2026) · accessed Oct 2026
- GOV.UK: Small business rate relief (updated 20 Oct 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.