Understanding Liability Insurance for Farmers Markets

Farmers markets are the pride and joy of their communities. Those who operate these treasures take equal pride in their operations and success. Liability insurance for farmers markets protects your market from liability. This means you will able to provide value and nourishment to your community for years to come.

In this blog post, we discuss what liability insurance for a farmers market is and why it’s important. There are consequences of not having insurance. We’ll help you make sure your farmers market has the right policy in place.

Were you looking for information on liability insurance for farmers market vendors instead?

What is Farmers Market Liability Insurance?

General liability insurance protects your market from bodily injury and property damage claims.

This is the first line of coverage a business purchases when setting up a market. From slips and falls to fallen signs, accidents happen. General liability insurance protects your market from these and other claims.  Without it, your market bears full financial responsibility.

Consider this example. Little Susie Q. is with her mom at their local farmers market one Sunday afternoon. They find parking and as the head in, Susie trips over a rope from a “Welcome!” sign that has come undone. Because the sign belongs to the market itself, you are responsible for Susie’s injury. Her mother ensures she’s fine, it’s only a scrape.  But that scrape gets infected and needs medical attention. Enter those prohibitive hospital bills. Is your market insured to handle the claim?

You might be wondering, what about our vendors? Each of your vendors should be required to carry their own individual policies. These policies protect against general and product liability claims vendors may encounter. Furthermore, the market itself should also be listed as an additional insured. This means extra protection for the market in the event one of your vendors runs into trouble.

And what about the landowner? Most markets do not own the land on which the farmers market takes place. Adding the landowner as an additional insured covers them in the event someone sues them. for an incident that occurs on their property during the operation of the market. Landowners are unlikely to invite the risk of hosting a farmers market without coverage in place. Listing them as an additional insured give them the peace of mind to allow you to share farm-fresh treats with your community.

Why is Liability Insurance for Farmers Markets Important?

If your farmers market isn’t insured, you’re responsible for liability claims and lawsuits.

It Protects After an Injury. Liability insurance covers the costs of medical bills and other related expenses. Without liability insurance, your market bears full financial responsibility.

It Protects in Court. The injured party may reject your insurance provider’s offer of payment and he or she decides to sue. Having a liability insurance policy will offer you protection in court.

It Protects Against Property Damage. If your market operation causes damage to someone’s property, your policy provides compensation. Without liability insurance, your market pays the total cost on its own.

What are the Consequences of Not Having General Liability Insurance

If your farmers market doesn’t have general liability insurance, you’re in for trouble.

The consequences can be serious when you don’t have liability insurance. Your market becomes financially responsible for claims such as:

  • Injuries or death
  • Property damage
  • General negligence
  • Cost of investigation for claims
  • Court costs and attorney’s fees

Don’t wait until it’s too late and an incident occurs. At that point, the claim will not be eligible to submit to your insurance provider. Protect your investment with market liability insurance.

Choosing the Right Famer’s Market Liability Insurance

Not all insurance companies are alike. Be careful not to choose the wrong liability insurance. This can be detrimental to your business and can hinder your potential to grow. These are the types of bad investments that can have serious ramifications in the future. Cover all your bases and choose insurance from the right provider.

Admitted Insurance. With admitted insurance, the state (where your policy is underwritten) backs your policy. State funds guarantee your policy pays out. Moreover, this applies even in the event your provider goes out of business.

Non-Admitted Insurance. States do not guarantee non-admitted insurance policies. If your provider goes out of business, claims against your business may not payout. In an instant and without notice, you can lose all your invested premiums.  You can also lose the ability to file eligible claims.

When choosing an insurance carrier, make sure you choose one offering admitted insurance.

Next Steps…

Having liability insurance is crucial. Running a farmers market means overseeing many different, moving parts.  Mistakes and oversights are easy to make. What may not seem like a problem now can morph into a very expensive claim. This threatens not only your financial stability but also your market’s reputation. Get a free quote today or call us at (317) 848-9075. We can show you how Campbell Risk sets farmers markets up for success!

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