Vendor Insurance

Do vendors need insurance? 

As a vendor, you likely attend many events throughout the year to sell your products. That could be local farmers’ markets, craft fairs, flea markets, shows, conferences, expositions, concerts, and other types of events. You are an entrepreneurial businessperson who works hard to bring your goods to market. You are constantly in motion, preparing material for the next show, packing things up then travelling with your goods and displays to venues or you may rely on one particular venue to sell your products in addition to trying to build your online presence.

You might not think your vendor business needs insurance because your business is much smaller than many companies you see and your inventory value is also smaller than the typical retailer. However, even if your booth and/or inventory is small, you should still have adequate vendor insurance coverage to protect and the good s in your booth.

Looking for Vendor Insurance? Contact us HERE to get an online quote now!
Looking for Vendor Insurance? Contact us HERE to get an online quote now!

Preparing your products and booth for an event is hard work. You have to coordinate travel plans, sales and marketing collateral, employees, and the products you’re going to sell. During any part of this process, you could encounter unexpected events that throw a wrench in your business.

For example, your products could become damaged during the transportation process or cause someone to be injured or you could cause property damage to a third-party venue while setting up or taking down. In any of these cases, your business can be sued for the bodily injury or property damage caused.

Regardless, you’ve found a formula that works and independence that is the envy of other business owners. But being a vendor comes with unique risks and being a responsible business owner means ensuring you are protected from any hazards that could damage your business and livelihood. Even as a vendor, there are risks that you need to protect yourself against with the proper insurance coverage. 

That’s why it’s important to have comprehensive vendor insurance from ALIGNED to protect your business. Even if you have never encountered a single case of claim or lawsuit in all the years you operated, insurance protects you against the irreversible damages of doing business.

Why is Vendor Insurance Important?

Depending on the size of your business and the process involved in selling your products, your business could be subject to all types of operating risks. Even if you’re an experienced vendor, it’s hard to predict the future.

  • You operate a small juice stand and a customer suffers an allergy reaction after purchasing a cup of juice.
  • You have a t-shirt stand at a concert and many expensive items in your inventory are stolen.
  • You have an open hot dog stand and someone suffers accidentally burns themselves on your grill.
  • You have an ice cream booth, but your freezer breaks down due to an electrical surge and spoils all the ice cream.

When do vendors need insurance? 

There are many instances when a vendor may need insurance coverage. Consider the following scenarios: 

  1. A customer at a trade show trips and falls over part of your display and injures herself. She ends up fracturing her arm and needs extensive medical treatment. She sues your business for the cost associated with treatment, lost wages, pain, suffering etc. 
  2. Your ice cream freezer breaks down due to an electrical surge the night before a large trade show where you are a focal point. Not only do you lose all your product and sales from the next day, but the event organizer sues you to recoup lost revenue from the event. 
  3. The truck carrying your display is in a collision on the way to an event, damaging it irreparably. 

What vendor insurance is necessary? 

There are risks involved with being a vendor, whether you are attending a flea market, farmers’ market, trade show or craft fair. In order to protect yourself and your business, it’s important to assess your risks with the help of a qualified insurance agent. The following are some of the coverages that should be considered as part of a comprehensive Vendor Insurance package: 

Commercial General Liability Insurance – also called CGL insurance, provides coverage for injuries, bodily harm, and property damages occurring to a third party during your business operations.

Product Liability Coverage product liability insurance protects your business against liability and damages resulting from the products you sell. It covers medical expenses, settlement awards, etc. and is typically included in a commercial general liability policy.

Commercial Property Insurance – protects your assets against damage in the event of a fire, vandalism, flood, or other natural accident beyond your control.

Commercial Auto Insurance may also be required if you operate a vehicle for your business. 

Equipment Breakdown Insurance – equipment breakdown insurance covers repairs and replacements from physical damage to your equipment beyond your control as a result of covered perils like electrical surges, arching, damage due to a pressure vessel etc.

Find the Right Vendor Insurance with ALIGNED

ALIGNED works with Canada’s top insurance companies to provide custom insurance packages at affordable prices. Click Here To Get A Quote or contact one of our business insurance experts for information or with any questions you may have.  

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