So you’re an artist, a crafter, a bath or bodywork provider, a food vendor, or food truck chef who wants to sell your goods or services at a festival or event. You sign up on the events page and receive an application for a booth or stand. It’s all going well until you hit the insurance section. “Wait,” you think, “do I really need insurance to be a vendor? And what’s this about adding the event organization as an additional insured? Do I have to buy insurance for them too?” Finding and acquiring vendor’s insurance can be tricky business, but at Canopy, we’re going to answer all of your questions and point you in the right direction.
DO I REALLY NEED INSURANCE?
Unless you have thousands of dollars—or more—socked away and earmarked for a lawsuit, medical bills, or property damages, you really do need insurance. Insurance protects your financial resources in case disaster happens while you’re at an event.
BUT WHAT TYPE OF INSURANCE DO I NEED?
You’ll need to carry general liability insurance to be part of a festival, event, expo, or farmer’s market. Most general liability insurance carriers cover you and the products you sell. For example, if you are a food vendor and your food makes attendees sick, a general liability insurance policy may help you cover the cost of their medical bills.
WHAT IS AN ADDITIONAL INSURED?
An additional insured is an organization or person that you’ve named on your policy who will be covered for your negligence. Adding an additional insured does not cover their liability if they are negligent, only your liability. Let’s break this down a little bit and give you an example. You are a jewelry maker, and you have a customer who trips over part of your display and falls headfirst into a tent pole, bringing down your entire canopy. They then sue you and the event organizer for medical costs, but before the event you added the organizer as an additional insured on your policy. Since the customer tripped on your display, you’re the one who’s liable, so your insurance would cover the customer’s medical costs for both you and the event organizer. Now, let’s reverse this scenario. Let’s say the customer trips over an improperly marked tent pole near your display. Are you at fault? No. The event organizer is at fault and their insurance will then pay for the medical costs.
DO I HAVE TO PAY FOR AN ADDITIONAL INSURED?
Maybe. Some insurance providers allow you to add unlimited free additional insureds to your insurance policies. Others allow a limited number of additional insureds, or they may require a small fee. If you are a vendor who attends multiple shows, you’ll want to ask your insurance carrier how many additional insureds can be added to your policy and at what cost.
FIND VENDOR INSURANCE FOR YOUR NEXT FESTIVAL
Ready to find your vendor insurance on Canopy? Make sure to pay special attention to the policy’s on your insurance policy on adding additional insureds.
All insurance policies have conditions, limitations, and exclusions, please refer to the policy for exact coverages.