Vendor Liability Insurance: Cost & Quotes From $5

 

The appeal of being a vendor is obvious. Whether you’re selling food via food truck, restaurant, or bakery; selling t-shirts at an event, re-selling used goods at the flea market, selling handcraft on busy streets, or selling homegrown fruits and veggies at the farmer’s market; one thing remains the same. You’re free!

In today’s discussion, we will give you a basic overview of what vendor insurance coverage is, how much it costs, and why sellers should purchase a vendor insurance policy.

Along the way, we’ll also give you some helpful tips for getting cheap vendor insurance and show you how to get free vendor insurance quotes.

How Much Is Vendor Insurance?

As vending is a low-risk industry, insuring your small business is usually quite affordable. So, how much does business insurance for vendors cost? It costs $33 per month for a $1 million general liability coverage. This totals to $396 per year.  

Do I Need Vendor Insurance? 

Yes. Vendors face a lot of risks.and yes you need  That’s why mobile food vending insurance is important because it provides protection. Some of the risks it aims to guard against are:

  • Customer personal injury claims
  • Community lawsuits
  • Lawsuits from product defects
  • Business interruption due to economic or environmental crisis

Customers will be comfortable to buy if there’s a vendor insurance policy. Insurance reassures that, when something goes wrong, customers can go after a vendor’s coverage and get some reimbursement. In this sense, being insured doesn’t only protect vendors but their customers as well.

Vendor Liability Insurance

Customers can sue vendors for injuries. The probability of facing a lawsuit isn’t only possible when the vendors were really the one at fault. Lawsuits might also result from mere allegations of causing injuries to customers. 

Vendors can avoid expensive settlement fees and legal costs by having vendor liability insurance with general liability coverage. General liability coverage applies when a customer experiences an injury and the vendor is at fault. Aside from injuries, general liability will also cover property damage. Types of property covered are phones, clothes, bags, and other personal belongings in the customer’s possession.

Liability Insurance for Food Vendors

Liability insurance for food vendors works best if it has general liability with products liability and public liability coverage.

Food vendors commonly face a lawsuit from the public after causing a fire. Lawsuits arising from fire accidents cost $56,000 for property damage and a minimum of $10,321 for personal injuries. And so, it’s important that public liability coverage is part of food vendor liability insurance. Also, aside from food vendors, public liability is also useful for food trucks. 

vendor insurance for events

Vendor event insurance is a type of vendors insurance coverage with terms that, as the name implies, takes effect when a vendor is involved with:

  • Trade shows and expos
  • Football and racing events
  • Charity and fundraising events
  • Live performances
  • Other events

In addition, depending on which carrier offers it,  vendor event insurance provides a certificate of insurance. A certificate of insurance is a document testifying a vendor is insured and won’t transfer any liabilities to the event organizers. 

Single Day Vendor Insurance

It is a 24-hour general liability insurance policy having products and completed operations coverage and product liability coverage. Other inclusions are tools and equipment insurance and event cancellation insurance. The general liability insurance in this specialized insurance plan has a $500,000-$1 million limit. 

Food Vendor Insurance for Festivals 

Food vendor insurance for festivals that offer basic general liability and contents coverage fit festival food vendors best. General liability will take care of slips and falls, tripping, and fire breakouts festival food vendors may cause due to poor crowd and space management. On the other hand, contents coverage will provide protection against theft and stock damage. We recommend getting these during musical festivals.

Mobile Food Truck Insurance

Festival food vendors using mobile food trucks can also opt to use mobile food truck insurance . Coverages are general liability and commercial auto liability.  General liability is useful if someone trips on the cables and wires of the mobile food truck. 

It’s also possible for someone to slam on the food truck carelessly and get injured; general liability also provides coverage if this happens. On the other hand, commercial auto liability will be handy if the mobile food truck rams into another mobile food truck, a random person’s car, or a festival facility. 

Hot Dog Cart Insurance

Compared to most other food vendors, hot dog concessions represent the lowest risk. However, there’s always the possibility of your cart blazing in flames and burning people and their property. And so, it’s best not to underestimate the usefulness of hot dog cart insurance. 

Another common scenario is that you could lose control of your cart, and it could crash into somebody’s  car or personal property . This makes it imperative to maintain a simple hot dog cart liability insurance policy. 

Flea Market Vendor Insurance

Vendors in flea markets sell secondhand items. Unlike brand new items, no one checks antiques for quality and consumer safety except the vendors themselves. And so, flea market vendors face risks that potentially defective products bring. 

Flea market vendor insurance provides general liability and products liability coverage. General liability coverage protects flea market vendors from false advertising and personal injury claims. On the other hand, product liability will cover any resulting costs when a customer bought a defective second hand item.

Farmers Market Insurance for Vendors

Just like flea market vendors, farmers market vendors can easily face lawsuits. Slip and fall accidents are the most common reasons. Contributing factors are:

  • Poorly managed electrical cords of stalls or tents
  • Wet grass or ground
  • Liquid spillage (oil, gasoline, or water)
  • Potholes and cracks on the ground

In connection, farmers market insurance for vendors can shoulder such an amount as it may provide $1 million for personal injuries, $400,000 for damaged customer property, and $5,000 for damages to business personal property. 

Craft Vendor Insurance

Most artisans set up at flea markets, farmer’s markets, festivals, or events. As such, craft vendor insurance is a policy designed to cover mishaps that could happen at vending locations. Carriers offer this as short-term insurance or standard policy for artisans such as sculptors, weavers, metalworkers, potters, and clock smiths. 

How Much Does Vendor Insurance Cost

Your individual business insurance quotes may vary depending on the size of your business, the city you do business in, how many employees you have, gross sales, and what you sell, but this should give you a rough estimate of what to expect. In general though, the average vendor insurance cost is $30 per month or $360 per year for a $1 million general liability insurance coverage.

Cost per Month Cost per Year Best for
CoverWallet $8 $96 Vendor insurance quotes comparison online
Thimble $10 $120 Short term vendor insurance
NEXT $25 $300 Food truck vendor insurance
Hiscox $33 $396 Online vendor insurance
Geico $38 $456 Food trucks and mobile food vendors who need to bundle commercial auto and vendor liability insurance
Allstate $45 $540 Vendors with growing business
Nationwide $60 $720 Vendor insurance with no deductible
Act Insurance $80 $960 Arts and crafts vendors

Cheapest Vendor Insurance

There are a number of factors that determine your insurance rates. However, here are a few tips if you want to make sure that you get cheap vendor insurance:

  • Pay your full year of insurance upfront.
  • Enroll in automated billing.
  • Ask for a policy with a higher deductible.
  • Bundle your vendor insurance with other policies through the same provider.
  • Increase your credit score.

Compare Vendor Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Best Vendor Insurance Companies

CoverWallet Vendor Insurance

Vendors easily find their needed coverage with CoverWallet . This company offers general liability, workers comp, commercial property, and other essential policies to food vendors, flea market vendors, and more. 

Pros

  • Get free quotes and compare the pricing of different carriers online
  • Covers different kinds of vendors
  • Stable rates
  • Get covered online

Cons

  • Policies CoverWallet sells are underwritten by its partners

Best for: Vendor insurance quotes comparison online

Average cost: $8 /month for vendor general liability coverage

Our rating: 10/10

Thimble Vendor Insurance

Thimble’s coverage is available for vendors in trade shows, conferences, festivals, markets, and flash retails. Thimble customers, who already bought an entertainment and events policy, can purchase vendor insurance as an add-on.

Pros

  • Get short-term vendor insurance in 60 seconds
  • Get covered online through Thimble’s website or mobile app
  • Instant proof of insurance

Cons

  • Only includes general liability

Best for: Short term vendor insurance

Average cost: $10 /month for vendor general liability coverage

Our rating: 9/10

NEXT Vendor Insurance

NEXT is one of the leading insurtech companies right now. The company states that it’s 100% dedicated to small businesses. At present, NEXT is helping 130,000+ customers. NEXT allows customers to enjoy discounts when buying more than one insurance policy. It also provides instant proof of insurance through its mobile app.

Pros

  • Get quotes, get covered, and manage insurance online
  • Online live support that responds quickly
  • Instant proof of insurance
  • Get insured in less than 5 minutes

Con s

  • Depending on location, a vendor might not get all the needed coverage from NEXT
  • Only insures food truck vendors

Best for: Food truck vendor insurance

Average cost: $25/month for vendor general liability coverage

Our rating: 8/10

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Hiscox Vendor Insurance

Hiscox provides coverage to online vendors selling furnitures, clothes, and other consumer products. Vendors already working with this company enjoy fast claims process, worldwide coverage, and flexible payment options. 

Pros

  • Provides worldwide coverage so long as the claim is filed in the US, a US territory, or Canada
  • Each customer claim is assigned to one Hiscox representative

Cons

  • Some customers reported that Hiscox increases rates questionably without even giving a heads up

Best for: Online vendor insurance

Average cost: $33 /month for vendor general liability coverage

Our rating: 7/10

Geico Vendor Insurance

Geico is one of the largest insurance providers in the United States, and they offer customized policies .So, whether you’re looking for Geico B2B vendor insurance, mobile food cart coverage, or flea/farmer’s market liability insurance, a Geico agent can hook you up with a comprehensive policy designed to cover all of your needs.

Geico also offers great rates on commercial auto policies.

Pros

  • Offices nationwide and agents available 24/7.
  • Easy-to-use Geico app.
  • Geico vendor insurance can be bundled with other policies for better rates.
  • Build the policy that’s best for you.

Cons

  • Premiums may increase without warning from one year to the next

Best for: Food truck and mobile food cart vendors who need to bundle commercial auto and vendor liability insurance

Average cost: $38/month for vendor general liability coverage

Our rating: 6/10

Allstate Vendor Insurance

Allstate’s vendor insurance is composed of general liability coverage, product liability coverage, and commercial auto coverage. With that said, this is perfect if you’re a vendor selling numerous goods using customized trucks or vans. In addition, the company even has an online tool on its website to hasten claims filing and processing.

Pros

  • Easy claims filing and processing
  • Has three options for its vendor insurance

Cons

  • Doesn’t offer commercial property as an option

Average cost: $45/month for vendor general liability coverage

Best for: Vendors with growing business

Our rating: 5/10

Compare Vendor Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Nationwide Vendor Insurance

Nationwide’s vendor insurance is offered in partnership with K&K insurance. Coverage extends to bodily injuries and property damage , premises, products and completed operations, and false advertising. Additional options also allow you to avail short-term policies, negate deductibles, and cover loss to property, stock, or inventory.

Pros

  • Can be availed without deductibles
  • Works in the event of theft

Cons

  • Expensive rates

Average cost: $60 /month for vendor general liability coverage

Best for: Vendor insurance with no deductible

Our rating: 4/10

Act Insurance Vendor Insurance

Last but not the least is ACT Insurance. The vendor insurance from this company is highly tailored to the needs of small businesses. Coverage isn’t that hefty. However, the pricing is one of the fairest in the market. ACT Insurance covers all types of vendors but mainly focuses on the needs of the ones selling arts and crafts.

Pros

  • Policies tailored to vendors selling handicraft and art
  • Cheap rates

Cons

  • Slow to respond to claims

Best for: Arts and crafts vendors

Average cost: $80 /month for vendor general liability coverage

Our rating: 3/10

 

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