In order to protect business owners who produce crafts or gift ware, the right insurance is important. Insurance can protect business owners from financial losses which could result from unexpected events, such as a lawsuit or damaged product. While dependent on the needs of the business, here are some insurance coverage options business owners involved in craft shows can consider.
Insurance coverage to consider
Commercial general liability insurance
Commercial general liability insurance can help business owners handle financial losses which could occur from bodily injury or property damage. For example, if a customer had an allergic reaction from a necklace purchased at a craft show, the business owner could be sued for damages.
Commercial auto insurance
Commercial auto insurance may be needed if a business owner uses a vehicle to transport their creations. If the vehicle is damaged while being used for business purposes, regular vehicle insurance may not provide coverage. A MCT commercial insurance broker can help business owners determine what coverage will work best for their business operation.
Comprehensive dishonesty, disappearance and destruction of money and securities
This type of coverage can help business owners handle losses which could occur from employee theft, or a loss of product on business premises. For business owners who operate at craft shows, they may have a large amount of cash on hand. If the cash is stolen, this coverage could help cover the loss.
Get the creative juices flowing: insurance pre-planning tips
Before becoming a craft show vendor, here are some tips which can prepare business owners for a conversation with an insurance broker:
Get proof of insurance and the appropriate level of coverage: craft show vendors are often expected to have a specific level of business insurance coverage and provide proof of this insurance to the event host/company. Receiving this information ahead of time will help the business owner know the amount of coverage they need to get, or, confirm existing coverage with their broker. Proof of insurance can be obtained by contacting a broker.
Know how long the craft show(s) will last: craft shows can often extend for a longer time period, such as the holiday season. This information will help a broker or an insurance company know how long the coverage is needed.
Determine if product will be sold at other locations: business owners often sell their product in more than one location. A broker will often ask if the business owner is selling at additional locations to determine if more insurance coverage is needed.
Keep the creativity going: contact a broker
Prior to selling at a craft show or hosting a craft event, contact a MCT Insurance broker. Our commercial insurance broker will assess the level of coverage a business owner needs and coverages which fit their operations.