# Liability Insurance



## NY_Rocking_Chairs (Jul 20, 2008)

Now that the kids are pretty much fending for themselves I am going to be starting up the woodworking business again. It has always been just a hobby level business which has paid for the shop and some extra spending money, not planning on going further with it at this point.

One of the places I am considering selling at is an open air market here in my town, I would not be the only wood-worker there.

The issue I am running into is in order to sell at this market they require my to have a liability insurance policy which names the market as the beneficiary. Speaking with my personal insurance company (State Farm) they told me they would classify my business as a "contracting" business and would not be able to write me a new policy, the only way they would insure me is if I already have proof of insurance for the past two years.

Has anyone else encountered this and who did you go through for basic liability insurance?

Thanks.


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## bladedust (Mar 12, 2012)

You would need to contact a commercial insurance agency which a totally different world than State Farm and all the other heavily advertised companies.


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## jonah (May 15, 2009)

What you're looking for is pretty ordinary general liability insurance. Any insurance agent who works with commercial clients will have a number of underwriters who offer that kind of insurance - its the most common type.

If they give you grief about proof of insurance for the past two years, tell them you are starting the business from scratch.


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## CaptainKlutz (Apr 23, 2014)

+1 Call a commercial insurance broker that handles many different companies. They will be able to tailor a package to your business needs.

FWIW - Something seems odd about the land owner insurance request to me, unless you this is permanent space, not short term retail space? If permanent retail space, then ignore below:

Local open air markets I've investigated here in AZ only require liability insurance with land owner named as beneficiary IF you are doing wood working ON-SITE. Do not need liability indemnification for sales booth. 
Besides it is almost impossible for a renting booth vendor to provide insurance protection for land owner for 'sales'; see - who pays when the customer falls outside bathroom and doesn't buy anything from anyone?

Last I checked, general liability insurance pricing starts @ $600-$1000 per contract, regardless if single event, or annual coverage. I find it very hard to believe an open air market targeted towards small businesses and 2nd hand sales can keep booths full if every booth renter has to buy insurance for land owner? Takes a lot of sales/profit to pay for typical sole proprietor ~$1000-1500 annual umbrella policy in each booth?

Best Luck.


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## LesB (Dec 21, 2008)

Have you contacted other vendors to see what they are doing?
Could several vendors be covered under one policy? spreading the cost?


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## tomsteve (Jan 23, 2015)

you might want to take a look at ACT insurance- Artists and Craft Show liability insurance.
https://www.actinsurance.com/

they have policies for a single show or annual policies.


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## kelvancra (May 4, 2010)

I wouldn't deal with them. If there was a claim I injured someone, I'd be named and wouldn't want a policy protecting other than me.


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## AlaskaGuy (Jan 29, 2012)

> I wouldn t deal with them. If there was a claim I injured someone, I d be named and wouldn t want a policy protecting other than me.
> 
> - Kelly


Who is them?


> ?


?


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## DrDirt (Feb 26, 2008)

Also look at insuring your tools.

Your home shop, is NOT covered by your homeowners policy if you are selling stuff you made.

So iif you had a break-in, and they ask if you sell your stuff, they deny your claim…..That is what I have from State Farm….Hobby tools covered, pro - NOPE


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## kelvancra (May 4, 2010)

The them is the them mentioned in the initial post, the " open air market here in my town." I've dealt with a lot of art's and craft shows, flea markets and so on over the years and have never had one make this demand.



> I wouldn t deal with them. If there was a claim I injured someone, I d be named and wouldn t want a policy protecting other than me.
> 
> - Kelly
> Who is them?
> ...


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## NY_Rocking_Chairs (Jul 20, 2008)

Thanks TomSteve, that's exactly what I am looking for.

The market is not on the land they own, it's rented and held in a parking lot of one of the major shopping centers. We have been selling Scout popcorn there for years so we have a good idea of the clientele and how busy it gets.

Originally it started as a farmer's market and probably 80% of the vendors are still farm/food based, they are just starting to get a mix over the last 3-4 years.

Knowing who the land owners are it doesn't surprise me this market is unique in the insurance requirement. If anyone has ever heard of Wegman's grocery stores…Rochester is home to the Wegman's family and HQ.



> you might want to take a look at ACT insurance- Artists and Craft Show liability insurance.
> https://www.actinsurance.com/
> 
> they have policies for a single show or annual policies.
> ...


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## Kazooman (Jan 20, 2013)

> Thanks TomSteve, that s exactly what I am looking for.
> 
> The market is not on the land they own, it s rented and held in a parking lot of one of the major shopping centers. We have been selling Scout popcorn there for years so we have a good idea of the clientele and how busy it gets.
> 
> ...


Did the market require the same insurance from the Boy Scouts to sell their popcorn? If not, how is that different than you selling finished wooden items made off-site? Some of the Scout carmel corn products have nuts in them. Someone with a peanut allergy could die from eating them. Perhaps popcorn is more dangerous than your hardwood cutting boards.


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## MikeDilday (Feb 21, 2017)

I think what they are looking for is to be a named insured or additional insured on your policy. You purchase liability insurance and add the market you are renting/selling at is added to the policy. Your woodworking business and the market are both insured. Like mentioned earlier check with an insurance agent and have them call the market directly.


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