Insurance for farmers markets and vendors
Risk management protection in the form of insurance is essential for most markets, and may be required by partner organizations or local government sponsors. There are several types of insurance to consider: 1) general market liability insurance; 2) product liability insurance; 3) directors and officers insurance; 4) insurance on vehicles, equipment and property. You should consider all of your risk exposure and consult with an insurance professional to make sure you have adequate coverage. Remember to be very clear and specific about all of your current and proposed market activities so that you can ensure you are adequately covered. A few types of insurance are discussed below.
Farmers Market general liability insurance
General liability insurance protects businesses from property owners, customers or other potential claimants, and helps businesses focus on risk assessment, food safety, and good operating practices. Policies may cover premises liability and property damage.
For several years, CFMA partnered with Campbell Risk Management to provide market coverage and vendor product liability insurance. CFMA no longer partners directly with Campbell Risk Management to provide insurance.
Visit campbellriskmanagement.com for more information and to apply for a policy. Your insurance agent may be able to recommend other insurers as well.
Product liability insurance
Product liability insurance protects vendors against consumer claims of injury caused by a defective or hazardous product such as contaminated food or beverage. Many market managers now require their vendors to carry their own product liability insurance policy.
Directors and Officers insurance
Directors and Officers insurance (D&O) covers market association board members. The fundamental responsibility of directors and officers is to judiciously represent the interests of the organization’s members and other constituencies in directing the business and affairs of the organization within the law.
Business property and other commercial insurance lines
These types of insurance protect commercial equipment or assets against theft or damage due to fire, flood, vandalism, or other unfortunate incidents. Additional coverage may be needed related to windstorms, hail, and other natural events. Finally, some activities require special coverage such as petting zoos, or other higher risk activities involving market visitors or customers to a business location. Again, being comprehensive in the assessment of all business activities related to the market and/or your business as a vendor and its operation will help you select the best coverage.