Field guide
Market insurance 101 for organizers.
Insurance is the topic everyone avoids until something happens. Then it's the only thing that matters. Here is the version I wish someone had given me before our first Sunny's Markets event.
The three policies that matter
1. General liability insurance (yours)
This covers you if a customer trips at the market or a vendor's booth setup falls on someone. Typical cost: $300-$800/year for a small-to-mid market. Coverage limits: $1M per occurrence / $2M aggregate is standard.
2. Vendor COI requirement (theirs)
Each vendor brings their own certificate of insurance (COI) that names you as additional insured. This protects you from claims arising from their products or operations — e.g. a customer gets sick from a vendor's food. Standard limits: $1M / $2M.
3. Venue insurance (theirs)
The venue (city, brewery, shopping center) usually has their own policy. Some require you to be named as additional insured on their policy; some require you to add them to yours. Read the venue agreement carefully.
How to actually collect vendor COIs
The hardest part of insurance compliance is collecting valid COIs from every vendor. Here's the system that works:
- Require it in your application. Vendors must upload a COI before approval.
- Check expiration dates. COIs expire annually; an expired one is no COI at all.
- Verify "additional insured." Your market name must appear on the COI. Look for it.
- Send reminders 30 days before expiration. Most vendors forget.
- Have a backup option. Many vendors get day-of coverage from ACT Insurance or similar — $30-50 for the day.
What general liability typically costs
| Market size | Annual cost (est.) | Coverage limit |
|---|---|---|
| Small weekly (under 25 vendors) | $300-$500 | $1M / $2M |
| Mid weekly (25-75 vendors) | $500-$800 | $1M / $2M |
| Holiday market / 3-day event | $400-$700 (event-specific) | $1M / $2M |
| Festival 5,000+ attendees | $1,500-$3,000+ | $2M / $5M |
The five mistakes I see organizers make
- Assuming the venue's policy covers them. Read the venue agreement; usually it doesn't.
- Accepting expired COIs. An expired COI is no COI. It happens more than you think.
- Skipping the additional insured requirement. A COI that doesn't name your market doesn't protect your market.
- Letting the agent describe coverage in their words. Make them read the policy language out loud for your specific scenarios ("a customer's child trips on a vendor's extension cord").
- Going without product liability for food vendors. If a vendor sells food, they should have product liability included.
Where to get quotes
Three places I've used:
- FLIP (Food Liability Insurance Program) — built for food entrepreneurs, fast online quote.
- ACT Insurance — popular with craft fair vendors, organizer policies available.
- A local independent agent — will shop your policy among 5-10 carriers and usually find a better deal than direct.