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: we help vendors get the tailored insurance coverage they need to protect their businesses. More than 100,000 Canadian entrepreneurs trust Zensurance as their business insurance partner.
What is vendor insurance?
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.
What does it cover?
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.
Who needs it?
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:
- Food vendors
- Craft fair vendors
- Farmers’ market vendors
- Flea markets vendors
- Trade show vendors
How much does it cost?
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
Common claims scenarios
Frequently asked questions