Vendor Insurance

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.