Vendor product liability insurance covers injuries or damages to another person caused by a product you made or sold.
When you’re prepping for an event, you have a lot to juggle. You think about signage, payments, maybe even electricity. And then, somewhere in the mix, there are your products.
You know how to make, package, or sell them, but what happens after they leave your hands and cause an accident?
What Is Vendor Product Liability Insurance?
Vendor product liability insurance is designed to protect you if something you sell causes harm to a person or their property. That could be:
- An allergic reaction to a baked good
- A rash from your homemade lotion
- Damage from a product you created or packaged
Product liability is a type of coverage offered on an annual vendor insurance policy, keeping your business safe from these claims at an unlimited number of events each year!
General Liability vs Product Liability (And Why Both Matter)
General Liability: Accidents at your booth
Product Liability: Harm from what you sell
Many vendors think they’re covered with general liability insurance alone, but it’s only half the picture. General liability will not cover you for claims related to your products. For example:
- If someone trips over your extension cord, that’s covered by general liability
- If someone ends up in the ER from an item you sold, that’s covered by product liability
Like a sweet and salty snack, both coverages work in harmony in a vendor insurance policy to bring you the best, all-around protection for your business!
Who Needs Product Liability Insurance?
If you sell, serve, or share physical goods at events, you likely need product liability insurance. That includes:
- Food trucks and bakers
- Soap and skincare makers
- Jewelry, clothing, and home goods sellers
- DJs or photographers selling printed photos or merch
- Anyone creating or packaging tangible products
Even if it’s “just a side hustle” or a one-day booth, risks are unavoidable. Having the right insurance makes you look legit, keeps your business safe, and often helps you book better (and more) gigs.
What Does Vendor Product Liability Insurance Cover?
It’s essential to know what types of claims you could be covered for in case something goes wrong. Product liability is designed to cover:
✅ Bodily injury caused by your product (e.g., allergic reactions, burns, breakages)
✅ Property damage caused by your product (e.g., spills, leaks, stains)
✅ Legal defense costs or settlements if someone files a claim
✅ Medical payments
If an event only lasts a few hours, your responsibility as a vendor doesn’t stop when the tent comes down (after all, food poisoning may strike your once-hungry patrons mere hours after you pack up and leave). Product liability is a type of coverage that applies during and after the event, long after your products have left your booth.
Did You Know?
Even if you did not create a product yourself (we see you, retailers and wholesalers!), you can still be named in a product liability lawsuit as the seller of the faulty goods. Product liability coverage can help you defend your business in a no-fault legal battle.
What’s Not Covered?
Knowing what you’re not covered for can help you be better prepared for the unexpected:
❌ Your own inventory or booth setup (you’ll need inland marine coverage for that)
❌ Product recalls
❌ Damage from something you knowingly sold with defects
❌ Injuries to employees, volunteers, or staff (this requires workers comp)
Pro Tip: Product liability comes with most annual vendor policies, and you can add optional coverages to protect yourself from theft, product recalls, and even employee injuries!
How Much Does It Cost?
The good news? Vendor product liability insurance is often more affordable than you think.
Product liability insurance for vendors starts at just $24.25 per month. You’ll get the most value from an annual policy, especially if you plan to vend more than a couple of times a year.
✔️ Unlimited event coverage for 365 days
✔️ Protects your business between gigs
✔️ Covers online sales
✔️ Offers optional add-ons, like theft protection
Why Event Organizers Ask for a COI
COI stands for Certificate of Insurance. It’s a document that proves you’re insured!
Event hosts ask for proof of insurance to protect themselves and ensure vendors are running legit businesses. With Insurance Canopy, you can get your certificate instantly after purchasing a policy, so you’re ready to go without the last-minute scramble.
How to Get Product Liability Insurance (Without the Headache)
Getting covered is fast and easy — no need to talk to an agent or dig through paperwork!
- Choose your policy type
- Fill out your vendor details (Type of product or service, estimated sales, etc.)
- Pay and download your COI
Professionalism Meets Peace of Mind
Being a vendor is exciting, creative, and full of potential. When you’re covered, you can focus on your setup, customers, and sales, not the what-ifs.
Get vendor product liability insurance today and walk into your next event with confidence!
Get Vendor Insurance Instantly
Policies start at just $49/event!
FAQs About Vendor Product Liability Insurance
Do I Need Product Liability Insurance for a One-Day Event?
Yes, you need product liability insurance for a one-day event! Even short events come with risk, and many organizers require you to carry liability insurance.
With Insurance Canopy, you can buy a policy online and download proof of insurance instantly.
Does This Cover Food Vendors?
Yes, product liability covers food vendors. You can be covered for claims like choking, allergic reactions, foodborne illness, and burns.
Just make sure your food or beverage products are accurately listed on your policy and do not contain alcohol, CBD or hemp, narcotics, or other harmful substances.
Liquor liability insurance and CBD event insurance policies are available separately for vendors who offer these types of products.
Is Vendor Insurance Required by Law?
Vendor insurance is not always required by law, but many event hosts make it a requirement to participate in an event.
Some states, cities, and counties may require vendors to carry liability insurance, so check with the event host to ensure your business complies with local laws and venue rules.
Should I Get Product Liability Insurance as a Vendor?
Yes, you should get product liability insurance as a vendor! If you’re selling, sampling, or giving away physical products, product liability insurance protects you if something causes injuries or damages.
