Vendor Liability Insurance
What Is Vendor Liability Insurance?
Vendor liability insurance is a type of coverage that protects vendors, exhibitors, and concessionaires from financial losses caused by third-party bodily injury, property damage, and related legal expenses. It is designed for businesses operating at temporary or mobile locations such as farmers’ markets, craft fairs, festivals, trade shows, and special events1.
Most venues and event organizers require vendors to carry it and provide proof of coverage in the form of a Certificate of Insurance (COI) before allowing them to participate.
What Does Vendor Liability Insurance Cover?
Vendor liability insurance protects your business from claims made by customers, event attendees, venue owners, or other vendors. Coverage typically includes:
Physical injury to others
Damage to others’ property
Advertising injury
Why It Is Required
Vendor liability insurance is often mandatory and helps protect both vendors and event organizers.
Vendor requirements can be set at the state, county, and local levels, but local governments and event organizers typically determine the specific rules vendors must follow2.
States generally regulate business registration and certain activities, counties often oversee health and safety requirements, and cities, venues, or event organizers usually require vendor liability insurance and a Certificate of Insurance (COI) to participate.
•Venue and event requirements
•Protection from unexpected accidents
•Additional insured requirements
Common Types of Vendor Insurance Coverage
•General liability insurance
•Product liability insurance
•Commercial property insurance
•Workers’ compensation insurance
•Commercial auto insurance
Policy Options
• Single-event vendor liability insurance
• Annual vendor liability insurance
Who Needs This Type of Coverage?
• Food vendors and food trucks
• Farmers’ market vendors
•Craft and handmade goods sellers
•Retail and merchandise vendors
•Trade show exhibitors
•Festival and fair vendors
What Happens Without Vendor Insurance?
Without this type of coverage, vendors may be responsible for medical expenses, property damage, legal defense costs, and settlements.
Get Vendor Liability Insurance
Your Gild Insurance Agent is here to understand your business and find the right coverage tailored to your needs.
For a free, online quote in minutes, try out Gildber! The fast, hassle-free option for a business insurance.
Frequently Asked Questions
What is liability insurance for vendors?
Liability insurance for vendors protects vendors from claims involving third-party bodily injury, property damage, and legal costs.
What kind of insurance do I need to be a vendor?
Most vendors need vendor liability insurance. Some may also need product liability, commercial property, workers’ compensation, or commercial auto insurance.
Do all vendors need a Certificate of Insurance (COI)?
Yes. Most vendors need a COI to participate in events. Without a COI, vendors are often not allowed to set up or sell.
