Wouldn’t it be nice if “vendor liability insurance” covered everything? Here’s the thing: if insurance worked like that, it would cost a fortune (and frankly, you’d be paying for a lot of protection you don’t even need).
Insurance is designed to fit your business, not the other way around. That means your coverage can be tailored to cover the risks you face! So, let’s figure out whether you need general liability, product liability, or both, so you know exactly what protects your booth, your products, and your peace of mind.
Vendor General Liability Insurance vs. Product Liability Insurance
The key difference between vendor general liability vs product liability insurance is what they protect:
General liability covers accidents that happen during your operations, like slips and falls at your booth.
Example: Someone trips over your speaker cords and breaks their arm. They want you to pay their medical bills.
Product liability covers harm caused by something you sold, even after the event is over.
Example: Your take-and-bake cookie dough uses almond extract, and someone has an allergic reaction. They decide to sue on the grounds of mislabeling of your product.
While they cover different situations, both general and product liability insurance work together to protect your vendor business from costly accidents and lawsuits. They help you:
- Cover bodily injury or property damage claims
- Protect against risks unique to your booth and products
- Fulfill most vendor insurance requirements
- Pay for defense costs if someone files a lawsuit
The Bottom Line…
General and product liability are like two halves of a strong safety net, helping you protect your business wherever the risk happens — at your booth or beyond!
How General Liability Insurance Helps Vendors
If you’re interacting with the public, setting up a booth, or performing services at an event, general liability covers the basics:
- A guest trips or falls at your booth
- Your equipment accidentally damages the venue
- An unexpected gust of wind picks up your tent and knocks over another vendor’s display
Pro Tip: Most event organizers require this as the bare minimum to attend.
How Product Liability Insurance Helps Vendors
If you’re selling, serving, or sampling goods, vendor product liability protects you if:
- Someone has an allergic reaction to your food
- A handmade mug breaks and injures a customer
- A candle scorches a tablecloth at a venue
- A product you wholesale turns out to be defective and causes harm
Even if you only sell for a few hours, your products can cause harm long after the tents come down and the crowds go home.
Did You Know?
Manufacturing defects are the #1 cause of product liability claims, so even if you didn’t make the product, if you sold it, you could still be named in a lawsuit. Product liability helps cover legal costs and protect your business from financial fallout.
General Liability vs Product Liability Insurance Requirements by Vendor Type
Let’s break this down like a stack of shipping boxes. Vendors typically fall into three groups: those who sell products, those who advertise their business services, and those who perform services at an event.
| Business Activity | Type of Vendor | Recommended Coverage |
|---|---|---|
|
Vendors selling physical products |
– Handmade goods |
✔️ General Liability Insurance ✔️ Product Liability Insurance |
|
Vendors advertising a business from a booth |
– Caterers |
✔️ General Liability Insurance |
|
Vendors performing a service at the event |
– DJs and emcees |
✔️ General Liability Insurance ✔️ Professional Liability Insurance |
If you’re selling products, product liability helps cover you if something you sell causes harm later. If you’re just providing a service, you may need something called professional liability (E&O) instead.
Four Real-Life Vendor Claim Examples
Claim: Your food truck leaked oil and stained the concrete of a local venue.
Coverage: General Liability Insurance
Claim: A customer uses your homemade lotion and has an allergic reaction.
Coverage: Product Liability Insurance
Claim: A guest trips over your DJ cables and breaks a leg on the dance floor (literally).
Coverage: General Liability Insurance
Claim: Your baked goods used eggs that were later recalled, and several customers got sick.
Coverage: Product Liability Insurance
Do Vendors Need Both Types of Insurance?
It depends on what you do, but general liability is smart for just about every vendor. It covers those common, everyday accidents that happen while working with the public.
If you’re selling products, having both general and product liability gives you the most complete protection.
Can I Skip One of These Coverages?
Don’t skip general liability. It applies to all vendors working with the public. If you don’t sell physical products, you probably don’t need product liability.
Most annual vendor insurance policies bundle both coverages into one plan. Product liability is usually not available on short-term event policies, so if you’re looking for full coverage, an annual plan is your best bet.
Can I Get Short-Term Product Liability Coverage?
Product liability coverage is only offered on an annual basis. It’s considered specialized coverage and isn’t typically available for just a single event.
The upside? Annual vendor policies are affordable and flexible. You can often pay monthly, making it easier to budget!
Stay Covered & Confident at Your Next Event
Whether you’re growing your side hustle or running a full-fledged vendor business, the right vendor insurance gives you peace of mind to focus on what really matters: your products, your customers, and your next big event.
Instantly protect your vendor business 365 days a year with general liability, product liability, and unlimited event coverage for as low as $24.25/month!
Common Vendor Questions About Product vs. General Liability Insurance
Do I Need Both General Liability and Product Liability Insurance for One Event?
You may need both general liability and product vendor liability insurance for one event, depending on:
- If the event requires you to carry both types of insurance
- You are selling a high-risk product, like food or handmade goods
- You plan to sell a high volume of products
- You plan to sell at other events or online
If you’re selling products and working with the public, it’s smart to have both. Showing up prepared with the right kind of coverage keeps you covered for those unexpected “uh-oh” moments!
What’s the Difference Between Vendor Liability Insurance and Product Liability Insurance?
Vendor liability insurance usually refers to general liability, while product liability specifically covers the products you sell. Most vendors carry both to be fully protected.
Which Type of Coverage Do Event Organizers Usually Require?
Most event organizers require general liability, but some also ask for product liability, especially if you are selling food, skincare, or handmade products.
Always check the event’s vendor requirements first to know what types of insurance you need!
How Much Do General and Product Liability Insurance Cost?
General liability starts at $49 per event, and product liability starts at $24.25 a month. Our product liability policy is only offered on a year-round basis and automatically includes general liability.
