Do You Need Vendor Insurance?
Posted on: 28 October 2022
If you run a small business, participating in various events can offer valuable contacts with the public and other companies. Although many of these events may be one-day affairs, you and your business still need business insurance. While you may hesitate to invest in an annual business policy, there is a policy on the market that may be a good match for you. The policy is vendor liability insurance. Here is a little more about this policy to help you decide if it is a good fit.
What Is Vendor Liability Insurance?
Vendor liability insurance is a short-term policy that provides comprehensive coverage for various claims and lawsuits resulting from your vending at an event. Your policy covers the following:
- Property damage liability
- Bodily injury liability
- Personal injury liability
- Advertising liability
Your policy also provides litigation coverage which will help cover the cost of defending a lawsuit against your business.
You can purchase policies that cover one-day or multiple-day events. You can also buy policies that cover several months at a time. Multiple-month policies are also called show policies.
Insurance companies design these policies for vendors who are part of a larger event. Although it can work as a stand-alone policy, it works in conjunction with the event host's coverage.
One of the benefits of vendor insurance is that you can purchase a policy for a fraction of what an annual liability policy can cost. This minimum investment allows you to keep your money in your small business where it is needed.
Why Do You Need Vendor Liability Insurance?
One of the main reasons you need vendor insurance is that the event you have registered for requires it. While the larger event will also have business insurance, they may require proof you do, also. This requirement ensures attendants do not file claims against their policy for something associated with your booth or product.
Some everyday events requiring vendor insurance may include:
- Conferences
- Markets
- Holiday Events
- Festivals
- Trade Shows
You may also need vendor insurance if you set up a pop-up shop. Pop-ups can be a great way to showcase your products in high-traffic areas. Unfortunately, the higher the traffic, the more risk the location can pose to you and your business. This increased risk is one of the reasons the host or landlord of your area might require you to show proof of a policy before allowing you to set up a shop.
Reach out to business insurance services to learn more.
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