Community events such as art shows, craft fairs, and others offer opportunities for professional artisans to promote their business. As insurance experts who work with artists and crafters, we understand how important these events are, but we can also foresee the problems an artist or crafter might run into if they do not have appropriate liability insurance.
What is liability insurance? Liability insurance provides protection to the the policyholder in the event that they are determined responsible for damages caused by some form of negligence on their part. These liabilities can include damage to a third-party's property or to a third-party's person. Even the most careful and responsible vendors risk being held liable for an accident involving their business.
Here are three reasons why artists and crafters should have liability insurance before heading to their next event:
1. Liability insurance is a requirement for most arts and crafts shows.
Whether it's because of local law regulations or a precaution the event managers are taking, if an event lists liability insurance as a requirement, then vendors will be required to get coverage before setting up a booth at the event.
Another important thing to know is 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, to which they are protected from lawsuits caused by the policyholder's actions.
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 provides the coverage you may need in case the unexpected happens.
There is always a chance of liability risk with any kind of business, and artists and crafters are no exception.
Here are just a few of the common claims we have received from artists and crafters:
A customer slips and falls inside a vendor's tent at an art fair/show and injures themselves. Liability costs include compensation for the customer's injuries.
Property (rented or owned) damaged
The same customer who slipped and fell in the tent also damages equipment, supplies, etc. Liability costs include supply and equipment replacement, as well as compensation for any injuries.
Product injures customer
An element of a product (e.g. a loose wire from a handmade piece of jewelry) is poorly designed and causes injury to a customer. Liability costs include compensation for the customer's injuries.
Supplies missing or damaged
Business supplies are stolen or destroyed by bad weather. Liability costs include supply replacement and possible damaged property.
These kinds of accidents aren't uncommon, and they aren't restricted to the irresponsible. Accidents happen, and it's important to be protected.
3. Liability insurance gives you peace of mind as you work.
Liability insurance gives artisans the peace of mind that helps them to focus on their business and not on whether or not they'll have a sudden expense from a claim. It allows you to put money and time into your business without fear that a liability claim might seriously harm your business's growth.
Liability insurance is a small expense now that can save you from much greater expenses later. Choose a policy that will work best with your needs and resources, and you'll be set for launching your business towards success.
Article provided by:
ACT Insurance Program team.
ACT Insurance Program (ACTinsPRO) offers general & product liability insurance for artists & crafters that can be purchased online at actinspro.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.