Shows, festivals, and fairs provide an ideal opportunity for food businesses to establish themselves in their community. As insurance experts who work with various food vendors, we understand how important it is that they have this opportunity, and we also understand how important it is to have liability insurance.
Liability insurance provides protection to the purchaser in the event that they are determined responsible for damages to a third-party's property or a third-party's person. Food businesses are particularly vulnerable to these kinds of damage.
Here's what could happen if your business doesn't have liability insurance:
1. Without liability insurance, you won't be able to set up your food vending services at events.
Whether it's because of local regulations or a precaution the event managers are taking, liability insurance is often a requirement for selling at events.
It's also important to know that events may also (and often do) require an insurance policy that covers not just the vendor and their business, but also the event's name and location. This kind of requirement is what's called listing the event as an additional insured. Having an additional insured on a policy simply means that the policy extends to the listed person or organization.
For example, if you own a hot dog cart and you want to sell your products at a local farmer's market, then when you obtain liability insurance for that event, you might need to list the market as an additional insured on your policy.
Adding additional insureds may or may not be free. Some insurance companies may charge you for it, and others won't. Before purchasing a policy for an event, verify this information with the insurance company.
2. Liability Insurance Can Save You Money
Whether you sell hot dogs or baked goods, or you sell from a cart or a trailer, your business faces liability risk.
Here are just a few of the common claims we have received from food vendors:
A customer slips and falls somewhere within your rented business premises and injures themselves. Liability costs include compensation for the customer's injuries.
Product reacts poorly with customer
A customer ingests one of your products that gives them food poisoning or causes an allergic reaction. Liability costs include compensation for the customer's medical costs, as well as a possible recall of the product.
Supplies missing or damaged
Business supplies are stolen or destroyed by bad weather. Liability costs include supply replacement and possible damaged property.
Property (rented or owned) damaged
The same customer who slipped and fell also damages equipment and some supplies. Liability costs include supply and equipment replacement, as well as compensation for any injuries.
While liability insurance may seem costly now, it can save you from much more significant expenses in the long-run.
3. Knowing that you have liability insurance allows you to move your business forward with confidence.
Owning and operating your own food business is an exciting but costly undertaking. Knowing that you have liability insurance to protect your work will help you work with optimism and peace of mind.
Liability insurance can ultimately benefit you and your business, and it will be worth every penny you spend. Choose a policy that fits your business well, and you'll be ready to keep moving your business onward.
Article provided by:
FLI Program team.
Food liability Insurance Program (FLIP) offers general & product liability insurance for food vendors at farmers markets & festivals, for street food vendors and mobile food vendors, for distributors of fruits, vegetables, meats, dairy etc. that can be purchased online at fliprogram.com.
The Program is designed and managed by Veracity Insurance Solutions, LLC an expert and leader in the commercial liability industry with over 30 years of experience.