Why farmers need liability insurance
In the busy, crowded environment of the farmers’ market, accidents can happen. Someone may slip on a fallen apple, or have a surprise allergic reaction to one of your products.
Unfortunately, these kinds of accidents sometimes result in lawsuits against the vendor. Liability insurance is a way of protecting your business. Without it, you could be financially responsible if you are sued by someone who gets sick from eating your food or gets hurt near your stall.
Every business, whether large or small, is at risk of being sued for negligence causing property damage or bodily injury and legal fees from claim settlements are always increasing.
Who is covered?
While some farmers’ market vendors believe that their home insurance liability covers their business operations, this is rarely the case. Comprehensive general liability coverage helps protect you as the business owner/operator from being held legally responsible for property damage or bodily injury arising from your business, property or operations. This could include anything from a slip and fall, an allergic reaction to a product, improper labelling, faulty products or mishandling of food items. Your Commercial General Liability policy would cover the defense costs on your behalf and any damages you would have to pay to the claimant, up to your limit of coverage.
Liability coverage also protects the market itself. It is necessary for both the market itself and each individual vendor to carry comprehensive general liability coverage. The farmers’ market liability insurance does not automatically provide individual coverage for each of its vendors.
The market’s board members also have liability coverage. A Director or Officer can be held personally responsible for claims including wrongful dismissal, discrimination and inadequate training of volunteers, among other offences. Directors and Officers Liability insurance extends coverage to a person, business or other entity to cover bodily injury or property damage. It also covers the cost of investigating the claim and the attorney fees if it goes to a lawsuit.
Get the coverage you need for your business
The cost of liability insurance may seem high but, compared to being sued for all that you potentially own, it is very beneficial. For more information, talk to your local Financial Advisor.