As the popularity of Farmers Markets continue to grow – USDA estimats approximately 7.175 markets in 2010 – Farmers Market organization and market managers are beginning to require that all participants have a commercial general liability policy. Unfortunately, many insurance companies specialize in this review, and farmers market managers and producers do not have a lot of jargon insurance industry.
A basic market or vendor insurance policy is structured to provide a wide range of coverage in order to protect the market or a seller against lawsuits. The main component of short-term policy is liability coverage. This form of insurance will pay for damages if someone is injured or if there is damage to property belonging to someone attending the event. The insureds can also add a policy to protect organizer, venue, etc., from the requirements of the activity in the market or the seller.
liability cover market or seller in case the participants are somehow injured by display vendor or product, or damage that is caused to the place of the seller
Q:.? Is my property covered by a general liability insurance policy
Answer: The general liability policy considered property you own, rent, loan, or property that is in your charge. This exclusion is because if you have property that fits this description, there are separate property policies that are available to ensure such risks
Question :. What type of property makes public liability cover?
Example: An example would be the protector of the clothes are damaged when he trips and falls over an exposed extension cords that you have not properly set for your event. Because this property (garments) was not owned, leased, or loans of you or in your care at the time of the damage general liability policy would pay for damage to these items.
Question: If I mention some of my policy as an additional insured, it means that they do not have their own separate insurance of
Answer: No , they would still need their own insurance in order to be properly protected. A common misconception with additional insured is the belief that if they are named as additional insured on the policy, they do not need to worry about buying their own insurance. However, an additional insured only protection under the policy if they are not responsible for the claim. They would not be protected under the policy if they were to blame for the claim.
The reasoning behind this is simple. If you are responsible for your claim, your insurance should provide protection, including providing protection for additional insured. If additional insured is liable, their own insurance would have to provide the coverage. If you are both the same and partly responsible for the same claim, then one would rely on their own insurance to protect
Example 1 :. As a distributor, you have to download huge Pumpkin Farmer’s Market, and have named the Great Pumpkin on your policy as an additional insured as required by the vendor contract. Through no fault of the Great Pumpkin, patron slips and falls in your store and brings a case against you and the Great Pumpkin. Policy would provide coverage for you and the Great Pumpkin
Example 2 :. The same scenario as above. But instead of slipping and falling into the booth, protector falls into the common area near the booth, as shelf. The customer sues you and the Great Pumpkin. Policy would protect you, but would not provide protection for the Great Pumpkin. They would have to rely on their own insurance
Q:.? What are cases & Aggregate Limits
Answer: occurrence limit is the maximum amount the insurance company pays for the event, regardless of the number of persons injured (creditors).
An Aggregate means the same as the cap. It is the total amount, regardless of the number of special cases; the insurance company pays out for all claims during the term of your policy
Example :. Your policy is $ 1,000,000 Aggregate limit. During the period of the life you have 3 requirements are provided for you. $ 250,000 awarded in another claim, $ 500,000 was provided in the second claim and $ 300,000 was awarded for the third claim. The total amount awarded: $ 1.05 million. The insurance company would pay a total of $ 1,000,000 (Aggregate max policy goals). You would be responsible for the balance of $ 50,000
Q:.? What’s Products Liability
Answer: Products liability (including completed operations) insurance provides protection for you against injury to the public caused by a defective product that you produce, sell or give away .
Most, but not all, general liability policy provided automatically Products Liability / completed operations coverage. Sometimes we are unable to provide this coverage if the products are considered dangerous; such as tobacco, cosmetics, motor vehicles, etc.
Here are some examples of product liability claims
Example 1: A customer buys a souvenir shirt sold by the seller in the market. Shirt was improperly labeled and contained the content viewer was allergic. Products liability insurance would provide coverage vendor for any resulting claims
Example 2 :. A food vendor selling chicken dishes inappropriate prepares food causing bacteria develop. Therefore, some customers get food poisoning. Products liability insurance would provide coverage of the food vendor for any resulting claims.
Other options for short-term insurance policies include coverage for the cost of medical care for someone who is injured due to the exhibitor at a special event, whether the policy holder is responsible or not. Coverage for vehicles used for the event can also be incorporated.
Short term insurance vary from company to company, so you should always consult an agent to understand what the policy covers.