FAQ ABOUT VENDOR INSURANCE IN WASHINGTON
There’s nothing like the satisfaction you get when customers purchase one of your products. Whether you sell craft items or homemade produce, selling your wares is something to be proud of. If you haven’t started your business yet, now is the perfect time to begin. Farmer’s markets, craft fairs, and trade shows are popular venues in spring and summer, so if you wanted to make your business public, there’s no better time than the present!
To sell in some venues, though, you’ll have to get vendor insurance. What is vendor insurance? We can explain.
Getting started with vendor insurance
Vendor insurance is just a general liability policy that you can purchase for yourself if you are a vendor. But who counts as a vendor?
According to Investopedia, a vendor is a third party that sells goods or service to customers. A vendor can also make the goods they sell, but that is not required.
Examples of vendors include jewelry makers at craft fairs, farmers at open-air markets, or wedding photographers.
Some vendors assume they don’t need vendor insurance. Some may think their risk level is too low, while others may want to avoid spending more money. We understand each concern, but picture the following scenario:
You own a farmer’s market booth where you sell baked goods. You’ve followed every health guideline in the book, and you know the venue’s requirements backwards and forwards.
That is, until a customer trips over your wooden sign in front of your booth. They say the smell of your cinnamon rolls was distracting, so they tripped over the sign (which they claim was in the middle of the road).
If they sue you for their injuries, and you don’t have vendors insurance, you could end up paying hundreds of dollars in fines and fees. And if you don’t have enough, you may have to liquidate your assets.
Vendor insurance would cover you for things like injuries to customers, property damage, and lawsuits, up to the limit listed on the policy.
It’s these kind of unforeseeable circumstances that make insurance invaluable. If you’re considering getting vendor insurance but aren’t sure where to start, read our guide to get the answers you need!
Frequently Asked Questions about Vendor Insurance
What’s the difference between vendor insurance and event insurance?
Event insurance and vendor insurance are both types of general liability insurance, although they differ in their purpose. However, both are required by many different venues.
If you need vendor insurance just for a specific event, you’ll have to get a short-term vendor policy (categorized under event insurance). Regular vendor insurance is best if you frequently sell your products or services throughout the year at multiple venues.
What does “additional insured” mean?
A venue or organization might ask to be an additional insured on your general liability policy. This means they want to be protected by your insurance, too.
Adding them to your policy will cover any customer injuries or property damage caused by your products. That way both you and the venue are covered if something goes wrong.
To add them to your policy, you must have a contract with the venue already, and you’ll have to purchase an additional insured endorsement.
If you need to talk to an agent about an additional insured endorsement, get a quote to get started!
Is vendor insurance required?
Usually, yes, it’s required. Many venues require you to carry a certain amount of vendor insurance. Some don’t, though, so check with the venue first before purchasing.
Regardless, a general liability policy is a huge asset for you as a vendor. It protects you from expensive claims and lawsuits. You may think it won’t ever happen to you, but it can (and might).
Accidents happen all the time, even with best intentions of safety, and property damage can also be unintentional.
And if you’re wondering about lawsuits, those are also a serious risk. Many happen over trivial things, such as the amount of ice in a drink or falling after being distracted by an advertisement. Even if one customer is upset about a tiny detail, if they file a claim, it could cost you dearly.
Getting vendor insurance means you can breathe easy knowing you have a back-up plan in case something goes wrong.
How much coverage do I need?
Again, it depends. Most venues require a certain amount of coverage, but you may need more if your business carries more risk.
For example, if you sell jewelry at a farmer’s market every Saturday, a standard general liability policy might be all you need. However, if you sell homemade beer at big events year-round, you’ll want to add liquor liability to your policy.
The limits of the policy you choose will depend on what the venue requires and what you need covered. In general, you want enough coverage to completely cover your assets. That way, if someone files a lawsuit against you, you won’t have to sell to pay the court fees.
Talk to your Trucordia agent today about what coverage your business needs.
What additional coverage can I add to my vendor insurance?
You can add many different policies and endorsements to your general liability insurance, including the following:
Although, in Washington state, workers’ compensation works differently than most states. Find out how to purchase this here.
What if my general liability policy doesn’t cover all my assets?
If you need more coverage than a general liability policy can offer, then consider commercial excess or umbrella insurance. It will add more coverage to your policy, meaning you can worry less about maxing out your policy limits.
It does have a higher deductible, but it can be well worth it. Get a quote for commercial excess or umbrella insurance today!
Should I get extra liability insurance along with my vendor insurance?
It’s completely up to you, but just know that any business carries risk. Your product could accidentally injure someone, somebody could slip and fall, a customer could sue you for false advertising…the list goes on.
Food vendors and businesses with frequent visitors should especially consider getting umbrella insurance or commercial excess insurance to keep them safe from accidents, like food poisoning or other customer injuries.
If you’re not protected, it could close your doors as you scramble to pay the bills. To keep doing what you do, consider getting extra liability insurance.
Who has the cheapest vendor insurance?
It all depends on the carrier and the coverage they’re offering. Usually, the cheapest coverage only protects you from general situations. It’s better to pick vendor insurance based on your business’ unique needs.
Trucordia values your budget, so we’ll help you find a variety of policies with rates you can live with (and maybe even some discounts). It’s one of the benefits of being an independent agency!
To find the best vendor insurance rates for your budget, get a quote today!
Who has the best vendor insurance?
We know we sound like a broken record, but it depends. No single company has the best vendor insurance for every vendor. Your business needs are different from everyone else’s.
That’s why you should shop with an independent agency like Trucordia. We can help you find the best policy for your business, not the best policy for the insurance company. Get a quote from Trucordia today!
Why should I choose Trucordia to help me find vendor insurance?
Choosing the right insurance provider for vendor insurance is tricky. You want to find someone with low rates, knowledgeable agents, and a good reputation.
Good news: Trucordia has all that and more! Every day, we strive to be:
- Personable
- Helpful
- Informative
- Friendly
- Caring
- Encouraging
- Easy-to-Understand
Our goal is first and foremost to help you make an informed decision regarding your insurance. Choose Trucordia to give you the information you need and guidance you can trust.
What do I need to purchase vendor insurance?
Your Trucordia agent will need to know the following information about your business:
- What services or products you sell
- Where you sell your products
- Who needs to be added as an additional insured
- How often you sell your products at venues (including farmer’s markets, fairs, and shows)
Your insurance agent will likely ask additional questions, but the above information is a good place to start.
If you have questions about vendor insurance or Trucordia, you can contact us via a phone call, text, or email. You can also use our booking website to schedule a visit. We’re here for you whenever you need!
