When determining where, when and how much to price a particular craft, or piece of art, artists often overlook the insurance aspect. Actually, there are two sides of the insurance coin. One side addresses the artists/crafter’s supplies, materials and manufacturing process. The other side of the coin deals with the potential liability as a result of the product’s sale.
The article Adequately Insuring a Home Business discusses the artist’s supplies, materials and manufacturing process. This article will address the other side of the coin; the need to insure against a potential product liability claim.
Crafters, Artists, Exhibitors, Vendors Insurance
Not to be confused with the heavy duty product liability insurance sold to large businesses that have intricate manufacturing processes, vendor’s liability insurance caters to the small business person. This covers the home crafter who wishes to sell her product at a flea market or exhibit. The event owner usually requires each vendor to have liability insurance and must provide a certificate as evidence that insurance is in place.
What Vendors Liability Insurance Covers
Policies cover products liability, which means that if someone is hurt as a result of artist’s product, the insurance company will defend and pay the claim. In addition to products liability insurance, most policies provide coverage for damage to premises rented to the vendor, medical payments, personal and advertising injury and more.
Cost for Vendors/Crafters Liability Insurance
Cost varies depending on number of events. Some insurance policies offer single event coverage whereby the policy only covers one event. Other policies offer 6 month or 12 month coverage. There are also policies that offer coverage by number of events. Policy flexibility prevents the small beginner from paying for an annual policy just to cover one event.
Compared to an automobile or homeowners insurance policy, the vendor’s liability coverage is relatively inexpensive and easy to obtain immediate insurance quotes online.
Where to Purchase Vendors Liability Insurance
Crafters should contact their existing insurance company to see if they offer such coverage. If they don’t there are several companies that offer the coverage. Listed below are a few companies that provide product liability coverage for vendors:
- Craft Council (http://www.craftcouncil.org/) requires membership in order to purchase insurance
- John Buttine Insurance
- CSI Insurance Group
- RLI Insurance Company (https://www.insuremyhomebiz.com/index.asp)
Is Vendors Coverage Worth the Expense?
Vendors, who are serious about taking their craft business to another level, should seriously consider purchasing the right insurance. A few hundred dollars is a small price to pay in comparison to having to shell out money to cover attorney fees in the event of an uncovered product liability claim.