Do farmers market and craft fair vendors need insurance?

The short answer

There is rarely a law that forces an individual vendor to carry insurance — but the market or fair almost always requires it as a condition of your booth. Organizers commonly ask for general liability with the market named as an additional insured before you can set up, and food sellers usually need product liability on top of that.

Who actually requires it

• Market and fair organizers. Most farmers markets, craft fairs, and festivals require vendors to show general liability — often $1M per occurrence — and to name the organizer as additional insured.
• Host venues and municipalities. When the event is on city property or in a leased venue, the underlying contract often pushes an insurance requirement down to each vendor.
• Buyers of food products. If you sell anything edible, product liability is commonly required and is the coverage that responds to a food-related claim.

What coverage applies

• General liability. Generally intended to respond to a customer injury or property damage at your booth — for example, a tent or display causes harm, in the event of a covered claim.
• Product liability. For food, beverage, and consumable sellers: generally intended to respond to allegations that a product you sold caused illness or harm.
• Inland marine (equipment). Optional coverage for your tents, tables, coolers, and inventory while in transit or at the market.

How to prove you have it

You request a certificate of insurance (COI) from your insurer and email it to the market manager, usually with the organizer listed as an additional insured. Many vendors buy annual coverage if they do multiple markets, or a short-term policy for a single event.

The bottom line

If a law, license, contract, or client asks for it, you generally need it — and getting a quote is the quickest way to see your options and obtain a certificate. Coverage terms, eligibility, and requirements vary by state and individual circumstance.

Frequently asked questions