The most common types of policies included in farmers market insurance are:
Commercial General Liability: This type of policy protects businesses from claims made by third parties who suffer bodily injury or property damages because of your products or services. The policy pays for defense costs and indemnifies you for judgments exceeding the limit of liability.
Automobile Liability: If someone gets hurt while using one of your vehicles, this policy helps pay for medical bills and other expenses related to injuries sustained during vehicle use.
Property Damage: Property damage includes things such as broken windows, stolen goods, and vandalism. Your business will be responsible for paying for repairs up to the amount specified in your policy.
Errors & Omission Insurance: This type of policy protects legal actions brought by customers alleging negligent conduct on your part. Unlike Commercial General Liability which requires you to defend lawsuits filed against you, Errors & Omissions policies cover you regardless of whether you’ve done anything wrong. However, it doesn’t provide protection against suits based upon strict liability.
How much Farmers Market Insurance Should I Buy?
If you have more than $25,000 worth of inventory, you need to buy enough insurance to cover all of your assets. You’ll want to consider purchasing a minimum of $1 million dollars’ worth of insurance. That way, if there’s ever a claim, you don’t lose everything.
Is Farmers Market Insurance Mandatory?
No, but some states require vendors to carry certain kinds of insurance. Visit your state department of agriculture to see if they mandate specific forms of insurance.
Can I Get Farmers Market Insurance Through My Employer?
Yes! Many employers offer their employees health benefits through an HMO. These plans typically allow workers to choose between different levels of coverage. For example, you may opt for basic hospitalization coverage or comprehensive coverage. Comprehensive usually comes with higher premiums. But it also offers greater protection. So ask about these options when choosing your plan.
Farmers Markets Are Not Required To Carry Insurance Policies
However, if you operate a farmers market, you might find that your city has requirements regarding what type of insurance you need to carry. Some cities require you to purchase commercial farmers market liability insurance.
You have to check with your local government before deciding how much insurance you need. They’re often willing to help you figure out what level of coverage makes sense for your operation.
Do I Need A Specialized Farmer Market Policy?
Not necessarily. Most standard homeowner’s insurance covers personal possessions like furniture and appliances. It won’t protect items used at markets. And many homeowners policies do not cover losses caused by fire or theft. In addition, many homeowners policies exclude coverage for loss due to “acts of God.”
What are the Consequences of Not Having Insurance for Farmers Markets?
If you’re like most small businesses, you probably aren’t thinking about what happens if something goes wrong at your farmers market. But there could be serious repercussions without proper coverage. Here are some things to consider:
Liability Claims Against Your Business Could Be Denied If You Don’t Have Coverage. When someone gets hurt while shopping at your farmers market, they might file a claim against you. Without adequate protection, these claims could be denied because you didn’t carry enough insurance.
Can I save money on farmers’ market insurance by simply hosting a safe, low-risk farmers market?
The most common types of policies include general commercial property/casualty insurance, automobile insurance, workers’ compensation insurance, and umbrella insurance. The cost of each policy depends upon several factors, including the type of business you run, where you conduct your operations, and whether you sell products directly from your farm or wholesale them to other merchants.
How Much Does Farmers Market Insurance Cost?
Insurance costs vary depending on the amount of risk involved in running a particular business. Small farms can expect to pay less per year than larger ones. However, this doesn’t mean that smaller companies will always get better rates.