Farmers Market Insurance for Vendors & Liability

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As Americans become increasingly more health-conscious and aware of the food that goes into our bodies, farmers’ markets have become more popular than they’ve ever been. In place of genetically modified fruits and veggies, consumers prefer to go straight to the source and buy homegrown food directly from the farmers. 

In addition to being a place where customers can purchase fresh, local, high-quality produce, farmers’ markets may also feature other vendors such as food trucks, small arts and crafts vendors, and other artisans showcasing their craft. Depending on the city, some farmers’ markets are open every day, while others may only open for a couple of days on the weekend. 

As a small farmers’ market vendor, one of the first steps you’ll want to do after filing for your business retail license is to purchase a farmers market insurance policy to cover you against potential claims. 

Whether you’re just starting your business and want to get covered or you just want to compare farmer market insurance quotes online and switch insurers, you’re at the right place! This article will outline some of the key reasons why farmers’ market vendors need liability insurance. Then, we’ll give you a farmers market insurance cost comparison from some of the top insurers on the market. 

Finally, we’ll break down the different types of farmers’ market insurance that different vendors may need and give you some tips on getting affordable farmers’ market insurance. It’s time to get your small business insured and financially covered!

Farmers Market Liability Insurance

The most common type of farmers’ market insurance is liability coverage. The most common types of liability coverage are public liability insurance and general liability. Public liability coverage is designed to protect you from customer claims arising from getting injured on your premises (e.g., they trip over your power cords) and is usually the most affordable option. 

However, most farmers’ market vendors go with a general liability policy as it provides more comprehensive coverage and is only incrementally more expensive than a public liability policy. General liability insurance not only covers you against injury claims that happen within your vending area but also provides coverage against customers’ claims about the quality of your produce (e.g., if you accidentally sold them molded or rotten produce and they got sick).

Farmers Market Insurance Cost Comparison 

Wondering how much farmers market insurance cost? Below, we’ve put together a table outlining the average rate farmers’ market vendors pay for their general liability insurance policies. Keep in mind that these numbers are just an average obtained from nationwide surveys. The amount you pay could be slightly more expensive or more affordable, depending on where you live, how many days you’re open for business, and your annual revenue, as well as other risk factors. 

The average cost of a $1,000,000/$2,000,000 general liability insurance policy for farmers market vendors is approximately $35 per month, or $420 per year. 

Farmers Market Insurance Monthly vs. Temporary Coverage

Most vendors purchase a full-term policy and pay their farmers market insurance monthly. However, if you’re a traveling vendor or you only open for a few days every month, then you may find that purchasing temporary or on-demand coverage is more affordable. 

Most insurance providers offer on-demand coverage options. These policies are designed to provide coverage for specific dates, so you’ll only need to pay by the day instead of having to pay for a full month at a time. 

Do I Really Need Farmers Market Vendor Insurance?

If you’re like many first-time business owners, then there’s a good chance that you’re questioning whether or not you really need insurance or not. As a young business, you’re likely trying to cut costs and save money so that you can invest it back into inventory, marketing, taxes, and other small business costs. 

Insurance is one area where you don’t want to cut costs, though. That’s not to say that you can’t find an affordable farmers’ market insurance policy (in fact, we encourage you to). However, you don’t want to go without an insurance policy altogether. 

These days, small business owners face more claims and lawsuits than they ever have in the past. Without adequate coverage, one small claim against you and your business could financially ruin you, causing you to pay thousands of dollars out of pocket. For most small farmers’ market vendors, this would be enough to put them out of business. 

Although vending at a farmers’ market is a relatively low-risk business, there’s still a chance that things could go wrong. For example, you could accidentally sell somebody veggies with E. coli or some other unknown bacteria. A customer who got sick as a result of this could hit you with a personal injury claim. 

With the right coverage, this claim would likely be 100% covered by your insurance policy. However, without coverage, you could be held financially responsible for paying that person’s hospital bills and even compensating them for any time they missed at their jobs! A simple mistake can easily turn into a major fiasco. 

This is just one example of something that could go wrong. Luckily, as you saw from the table above, farmers’ market liability insurance is relatively affordable and won’t set you back that much. The small monthly premium is well worth the cost for the protection offered by a good insurance policy! 

Farmers Market Insurance for Vendors

As we mentioned, farmers’ markets attract a wide range of shoppers and often contain several different types of vendors. While the majority of the vendors are local farmers, it’s also common to find food trucks, local artists, bakers, and other vendors. Below, we’ll explain the small difference in coverage that you may need, depending on which type of vendor you are. 

Liability Insurance for Farmers Market Vendors

If you’re a farmer selling their homegrown produce at the market, then you’ll most likely need a full-term general liability insurance policy. This will protect you from injury claims, product quality claims, and other safety and health-related claims that could come your way. 

Liability Insurance for Artisan Vendors at Farmers Market

Many farmers’ markets host pop-up artisans and vendors. If you only set up at the market from time to time, then you’ll probably benefit from a temporary or on-demand insurance policy. However, if you’re renting a permanent space at the farmers’ market, then you should go with a full-term monthly liability insurance policy for artisans.

Read more about artisan insurance 

Liability Insurance for Food Trucks at Farmers Markets

Food trucks and food vendors are commonly seen at farmers’ markets, as most of the produce vendors don’t have the necessary license to sell cooked food to the general public. Compared to produce and artisan vendors, food truck liability insurance policies may be a bit more expensive. This is because there is a higher degree of risk involved with the large trailers and cooking equipment found on most food trucks and trailers. 

Read more about food truck insurance

How To Get Cheap Farmers Market Insurance

The best way to make sure that you’re getting the best rate is to compare quotes from different insurance providers. Most providers are in constant competition for your business and they’re often willing to “outbid” other companies in your geographical area. 

To find cheap farmers market insurance quotes right now, simply click the ‘Get Quotes’ button below, enter some preliminary information about your business, and have customized quotes from the best farmers market insurance companies coming your way!