Vendor Insurance

Vendor Insurance

Protect yourself and the products you sell with Vendor Insurance.

Comprehensive coverage for vendors selling items at food and farmers’ markets, craft fairs and many other types of events. 

Zensurance - Food Vendor

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Arts Vendor

Insurance for vendors

Preparing to exhibit at an event takes effort. You have to make travel plans, organize marketing collateral for your booth, and ensure you have enough goods to sell. Even if you’re an experienced vendor, preparing beforehand can be demanding.

You work hard to ensure everything is ready for your event, but protecting your business against the unexpected is also crucial. That’s where we come in: Zensurance helps vendors get the tailored insurance coverage they need to protect their businesses.

Vendor insurance is designed to protect vendors against risks associated with producing and selling merchandise at events such as farmers’ markets, arts & craft shows, and trade shows.

Vendor insurance combines several coverages to provide comprehensive protection all vendors need. Typically, an insurance package for vendors will include the following coverages:

  • Product Liability Insurance: Product Liability coverage is essential for vendors that manufacture, distribute, or sell any products, including food. This type of coverage provides financial protection against claims of alleged property damage or bodily injury that was directly caused by your product. Three of the common reasons for product liability claims are a design defect (the design of the product is unsafe or faulty), a manufacturing defect (an error occurs while the product was being made), or a marketing defect (such as incorrect instructions or a lack of safety warnings).  Suppose a craft item you create and sell injured a customer due to a design fault; Product Liability Insurance could cover the lawsuit and associated fees.
  • Commercial General Liability Insurance (CGL): Commonly, the organizers of the event you’re showcasing at will hold liability insurance, but it may be mandatory to have your own CGL insurance policy. CGL protects you if someone alleges your business is responsible for bodily injury or property damage. Suppose you were a food vendor exhibitor, and someone tripped over a tent rope from your stall. If the customer was injured and sued you, CGL may cover the cost of medical fees and legal expenses regardless of the lawsuit’s outcome.
  • Commercial Property Insurance: Commercial Property Insurance provides financial protection for your products and any business-related equipment from insured risks that occur beyond your control, such as a fire, theft, or flood. For example, say your inventory and equipment were damaged after a flash flood at the market; this coverage may provide financial coverage to repair or replace those damaged items.
  • Equipment Breakdown Insurance: If you’re a food vendor or your business requires the use of professional equipment, Equipment Breakdown Insurance is vital to have. It covers the costs of repairing or replacing equipment that breaks down or is damaged due to mechanical failure or electrical issues.  Suppose your food truck’s fridge breaks down on a hot day – Equipment Breakdown Insurance could cover the cost to repair the fridge.
  • Event Liability Insurance: When attending trade shows, conferences, expos, and other public events, your business should include temporary event liability insurance to extend your general liability insurance coverage. It’s designed to cover third-party property damages and third-party bodily injuries that may occur at a trade show for which you can be liable. Most trade show organizers and venue owners require vendors to carry event liability insurance.

A vendor insurance policy package is recommended for any business that produces, manufactures or sells products at various exhibits or markets. Here are some of the specific types of vendor businesses we cover:

The cost of a vendor insurance policy is dependent on several factors. As your business is unique, your insurance policy is tailored to meet those needs. For example, insurance for a small food vendor can anticipate anywhere from $500-$1,000 per year.

To understand how your quote is calculated, here are some components that influence the cost of your insurance:

  • Years of experience
  • Type of product sold
  • Annual and projected gross revenue
  • Number of employees
  • Previous insurance claims

Getting insured is quick and easy!

Complete our 5-minute online application for a free vendor insurance quote.

Common claims scenarios

Jam products at farmers market

Problem: You own a small farm and sell fruit jams at a local farmers’ market every weekend. A customer alleges that your raspberry jam must have been contaminated as they had an allergic reaction to it.

Outcome: Your customer successfully sues you for bodily injury. Your Product Liability Insurance may cover the cost of medical and legal fees totalling $5,000.

Customers at an art market

Problem: You’re an up-and-coming artist who frequently sells paintings at craft fairs around the city. While you’re dealing with a customer, several of your valuable paintings are stolen.

Outcome: Your Commercial Property Insurance may cover the cost of the stolen paintings totalling $8,500.

Making noodles at the floating market Thailand.

Problem: You’re a food vendor that sells hot snacks at many events around the city. While you’re at an event, your soup warmer fell off the booth and scalded a customer.

Outcome: Your Commercial General Liability Insurance may cover the legal fees and medical bills totalling $25,000.

Frequently asked questions

What is a ‘Certificate of Insurance’ for vendors?

A Certificate of Insurance is a document that provides evidence of active insurance coverages and the limits. These certificates help event organizers quickly confirm that a vendor is compliant with the event’s insurance requirements.

Does my Vendor Insurance policy cover multiple locations and venues?

Yes. Vendor Insurance will cover your business wherever you operate in Canada.

How much Vendor Liability Insurance do I need?

Most venues require vendors to hold Liability Insurance, but the minimum coverage limits vary. You need to protect your business against the risks that you wouldn’t be able to afford out of pocket, so it’s strongly recommended to focus on the coverage you need rather than the amount of coverage that’s mandatory.

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Ready to start? Let’s get a quote!

You want to get the best price for your vendor liability insurance policy, and we can help make that happen.

We’re partnered with more than 50 leading Canadian insurance providers, allowing you the opportunity to choose from a variety of policies and premiums that suit your coverage needs and budget.

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