What insurance do I need if I sell at a craft show?
Mar 28, 2017 2 minute read
From farmers’ markets to holiday craft shows, businesses across Canada sell their products at craft shows. There is lots of behind-the-scenes work which goes into a vendor attending a craft show, such as organizing the booth details with the host, setting up merchandise displays and promoting the event. Insurance is another important “behind-the-scenes” factor. Insurance protects craft show vendors from situations which could cause financial losses, such as damages to their product.
To help a business owner determine what insurance they need to attend a craft show, here are seven common questions a commercial insurance broker will ask.
Insurance and craft shows: common questions from a broker
1. What product are you selling?
Understanding the type of product a business sells will help the broker determine what risks are associated. These risks will help the broker find an insurance coverage which will protect the business owner and product.
2. How much product are you selling at the craft show(s)?
The amount of product a business owner sells at a craft show will present specific risks. For example, a vendor who brings 200 necklaces to sell at a booth may require more coverage than a vendor who sells 100 scarves at a booth. The quantity will determine the overall value of the product being sold and the amount of product which needs to be insured. A broker will help business owners determine what coverage they need, based on the amount of product being sold.
3. How long will you be involved in the craft shows?
Some business owners may be involved in craft shows for a specific time frame, such as the holiday season. A broker needs to understand the duration of the business’ participation in craft shows to find insurance coverage which addresses the time frame and the product being sold. Should a business need to extend their insurance policy to cover additional craft shows, their broker and the insurance company needs to be informed.
4. Will you have product in different locations?
If a business owner is selling their products at multiple craft show locations, this will create unique risks – such as potential theft and/or damage to the product. This information will help the broker determine if additional coverage may be needed.
5. How are you transporting your product to the venue?
If a business owner is transporting their product in a vehicle, business insurance for the vehicle may be needed. This protects the owner from financial losses should there be damage to the car during business activities. To get a business auto insurance quote, contact a BrokerLink broker.
6. How much cash will be on hand?
Should a craft vendor have a large amount of cash on hand at a craft show, insurance to protect the business owner from a variety of scenarios, such as theft, is important. Some insurance policies provide coverage for comprehensive dishonesty, disappearance and destruction of money and securities. Contacting a BrokerLink broker will help business owners determine how to protect on-hand cash.
7. What insurance limit does the venue require?
Craft fairs often request business owners have a specific amount of insurance coverage and proof of insurance to be a vendor. It’s beneficial for businesses to contact the venue to determine the required coverage and then confirm with their BrokerLink broker if their coverage is sufficient. If a business does not have insurance coverage, the above questions will help a broker determine the best fit for the business. However, an important coverage to consider is business general liability insurance. This coverage protects business owners from scenarios which could result in a financial loss, such as a lawsuit. For example, if a customer slipped and fell on an extension cord which was part of the vendor’s booth, the vendor would be liable for damages caused to the customer.
Contact a broker to protect your crafty creations
For business owners who have questions about their current insurance or insurance they need for craft shows, contact a BrokerLink broker. We guide business owners through the process and find the best business insurance for their needs.