Your first event is booked. You’re excited to sell…until the organizer asks for proof of insurance and setup day reveals wobbly tents, loose cords, and big crowds. How do you get covered in time and what kind of coverage do you need?
Let’s break down what vendor insurance coverage is, why you actually need it, and how it can protect you from the most common “uh-oh” moments new vendors face.
Prepping for an event? Get the info (and coverage) you need fast with our Vendor Insurance Toolkit!
What Insurance Do You Need as a Vendor?
Selling your food, products, or services at events opens your business to new risks. If a customer trips over your display or your concession cart causes a grease fire, the costs can quickly add up. Vendor insurance helps cover those costs, protecting you (and the venue) from paying out of pocket.
If you’re just getting started and aren’t sure what coverage you need, most new vendors start with general liability insurance and add other coverages as their business grows.
General Liability Insurance
This is the primary coverage you need to meet new vendor insurance requirements and get into events. Sometimes called vendor liability insurance, a general liability policy covers you if:
- A shopper gets hurt at your booth or stall
- You accidentally damage someone else’s property
- You face legal fees after an accident
The best thing about general liability insurance is that you can start small with a short-term policy. That makes it affordable, flexible, and perfect for new vendors testing the waters. With Insurance Canopy, you can get coverage in minutes and head into your next event with confidence.
Other Vendor Insurance Coverage Types You May Need
Whether you’re an event photographer or own a pop-up bar, a little extra protection can go a long way. Depending on what you sell and how you operate, an annual policy with these additional coverages keeps you fully protected:
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| Coverage | What It Is | Who Needs It | What It Does |
|---|---|---|---|
|
Insurance that covers damages caused by the products you sell or sample. |
Food vendors, crafters, skincare or cosmetic sellers |
Covers claims like allergic reactions, burns from candles, or injuries from a faulty product. |
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Insurance for mistakes or negligence in services you provide. |
Photographers, instructors, and other service-based vendors |
Covers claims if a client says your work caused financial loss — like showing up late or messing up a cooking demo. |
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|
Protection from damages caused by guests and customers when you sell or serve alcohol. |
Bartenders, caterers, or food vendors serving alcohol |
Pays for legal costs if an intoxicated customer you served causes an injury or accident. |
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|
Equipment & Inventory (Inland Marine) |
Coverage for your movable tools, gear, and inventory. |
Vendors who bring gear to events (craft booths, food vendors, mobile boutiques) |
Reimburses you if business-related equipment is stolen or damaged. |
|
Protection against online risks and data breaches. |
Vendors who take card payments, run online shops, or store customer data |
Pays for costs related to cybercrimes, including data recovery, ransom payments, and legal fees. |
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|
Insurance for vehicles used in your business. |
Food trucks, mobile coffee carts, or vendors who use a vehicle for setup |
Covers costs if your work vehicle is damaged or causes an accident, like a food truck backing into another car. |
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Required coverage if you hire employees. |
Vendors with staff or paid helpers |
Covers medical expenses and lost wages if an employee is injured or becomes ill on the job. |
Common Insurance Myths for New Vendors
It’s easy to believe insurance isn’t for you when you’re just starting out. Here are two myths that often trip up new vendors — and the truth behind them:
- Myth: “One-day event vendors don’t need insurance.”
- Truth: Short events come with the same risks as long ones. A slip, spill, or accident can happen anytime, and without coverage, you’re on the hook.
- Myth: “Insurance is too expensive for small vendors.”
- Truth: Most vendor policies cost less than the average claim. A small premium can save your business from big, unexpected bills.
Types of Risks Covered by Vendor Insurance
Every vendor faces small risks that can turn into big problems if you’re not ready. Once you know what to watch for, it’s easier to match the risk with the coverage that protects you. Here are the most common “uh-oh” moments and the insurance that’s got your back.
| Scenario | Coverage That Helps |
|---|---|
|
During setup, one of your signs falls and cracks a tile on the venue floor |
General Liability (property damage) |
|
It’s show time, and an event attendee trips over your extension cord, falls, and twists their ankle |
General Liability (medical expenses) |
|
While providing samples, a customer has an allergic reaction to the nut oil in your lotion |
Product Liability |
|
While checking out a customer, a tablet is stolen from your booth |
Equipment & Inventory |
|
After photographing a wedding, you lose all your digital files and the client sues |
Professional Liability |
Want the full scoop on the coverages you need? Check out our Vendor Guide to Liability Insurance.
What Amount of Vendor Insurance Coverage Do Venues Require?
Most venues need you to carry a specific amount of general liability insurance to properly cover the risks associated with an event. Organizers commonly request the following limits of liability:
- $1,000,000 per occurrence (the most your policy will pay per claim)
- $2,000,000 aggregate (the most your policy will pay for all claims)
Depending on the venue, you might need higher limits or additional coverages, like product liability. If you’re not sure, ask the venue what their requirements are before the event.
Vendor COI Requirements
When venues ask for proof of insurance, you can send them or show them your COI. Most organizers do a quick scan for:
- Your business name (must match your application)
- Policy start and end dates (must align with the event)
- The venue listed as an additional insured
- Your coverage limits (typically includes $1M per occurrence and $2M aggregate)
Insurance isn’t meant to be a hurdle for new vendors. Instead, it helps you safely grow your business. Learn more about your vendor certificate of insurance.
How to Choose: Vendor Insurance Per Event vs Annual
New vendors often start with a short-term policy until they’re ready to attend more events. An annual policy protects your business for the year, renews easily, and lets you add specific coverages.
Choose one-day vendor insurance if:
- You’re testing one or two shows this year
- You need a single COI for a one-off event
Choose annual vendor insurance if:
- You’re attending a season of markets, pop-ups, or fairs
- You need extra coverage for your products, employees, or vehicle
What’s Not Covered under Vendor Liability Insurance (So You’re Not Surprised)
Vendor liability insurance covers common risks, but not all policies look the same. Always read your policy limits and exclusions to make sure you have the right coverage. Some common claims that may not be covered include:
- Alcohol service (you’ll need liquor liability coverage)
- Your vehicle, truck, or trailer (you’ll need commercial auto insurance)
- Employee injuries (unless you have workers compensation)
- Certain professional services
- Product recalls
- Intentional acts of harm
- Unexplained damages or losses (due to lack of proof or mysterious disappearances)
Not sure if your business is covered? We’re here to help! Contact us to speak with a licensed, non-commissioned insurance agent who can get you the answers (or the coverage) you need.
How Much Is Vendor Insurance?
New vendors can get insured for as little as $49 per event. With options for one to 90 days of coverage, we provide the protection you need, whether you’re selling at a one-day festival or a seasonal market.
The final cost of vendor insurance depends on:
- Location
- Business size
- Additional coverages
- Increased limits
Pro tip: If you’re starting off strong and working five or more events this year, you could spend less with an annual policy. That gives you more ways to profit and pocket those extra savings. Win-win.
How Do You Get Vendor Insurance?
Getting insured as a new vendor is easier than you think. Within minutes, you can apply online, get an instant quote, and have your COI ready to go. Here’s how to get started:
- Tell us about your business
- Choose the coverages you need
- Get a quote and instant proof of insurance
FAQs about Vendor Insurance Requirements
What Happens If I Don’t Get Insurance?
Not having vendor insurance means you’ll be left paying out of pocket for medical bills, legal fees, and repair costs if your business causes an accident. You might also be ineligible to attend most events.
What’s the Most Important Coverage for New Vendors?
General liability insurance is the most important coverage for new vendors. This short-term policy covers the most common risks vendors face, including third-party injuries and damages.
What’s the Difference Between General and Product Liability for Vendors?
The main difference between general and product liability for vendors is that general liability covers accidents related to your business, while product liability covers harm caused by your product after it’s been sold.
