Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a farmers market.
This article will discuss the primary insurance coverage for farmers markets, general liability insurance, as well as additional policies that are appropriate for this industry.
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Farmers Market General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
COMMON SITUATIONS FOR WHICH A FARMERS MARKET MAY HAVE GENERAL LIABILITY INSURANCE
Example 1: As you pack up your tent at the end of the day, you leave your provisions on the ground. As you rush to your vehicle with a load of stuff, a tourist falls over a tent pole and suffers terrible injuries. She threatens to sue unless you pay her medical bills. Her medical expenditures would most likely be covered by a general liability insurance policy.
Example 2: A worker is unloading enormous cartons of apples from their vehicle in preparation for the day’s work. On his last journey, he loses control of the pushcart and smashes into a gathering of tourists. Several people were seriously injured in the disaster. If they file a claim against your company, your general liability insurance will almost certainly pay your legal bills as well as any future award settlements.
Example 3: After launching a new advertising campaign on your local access channel, a rival calls and accuses you of libel and threatens to sue you for damages. General liability insurance will cover your legal bills and any settlement payments if you settle out of court.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
Farmers markets in the United States pay an average of $400 to $1500 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Farmers Markets Require Additional Coverage
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other sorts of insurance that all farmers markets should have are as follows:
Insurance for Commercial Vehicles
Every week, you’re responsible for transporting things back and forth. And in order to achieve so, you will most likely need to use a variety of vehicles. Any automobiles used for business purposes should be covered by a commercial auto insurance policy to protect your company and its workers financially in the case of an accident.
Insurance for Workers’ Compensation
Workers’ compensation insurance is intended to assist pay medical expenditures and disability benefits if an employee is hurt or becomes sick at work. Most states mandate this coverage for any firm with part-time or full-time workers.
Types of Coverage Required by Some Farmers Markets
In addition to the insurance listed above, your farmers market may need other forms of coverage based on particular features of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Umbrella Insurance for Businesses
There is always the possibility that an accident or litigation may exceed your basic insurance coverage. If this occurs, you may be forced to pay for the remaining damages out of pocket. To prevent this problem, commercial umbrella insurance works to supplement your main coverage and keeps your farmers market open for business.
Insurance for Product Liability
When developing or selling your items, bear in mind that one of them may cause damage to a consumer. A consumer, for example, may allege that your goods caused them ill and sue you for compensation. You may rest comfortable knowing that you have an additional layer of financial safety with product liability insurance.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.