Vendor Insurance – Why Do You Need It?
Businesses of all types understand the need for various types of events in order to promote products, services or simply information about the brand. Many different types of events – ranging in scope, level of complexity and number of potential attendees – exist, but what doesn’t exist is an event without absolutely any risk. Every event in which a business is exposed also exposes the business to potential risk. Some vendors in particular do not carry full-time liability insurance, but choose to carry vendor insurance for specific events and occasions. What exactly is vendor insurance, and why do you need it? Below, we’ll explain the answers to both questions.
- What is Vendor Insurance?
Whenever small businesses or sole proprietors have their own events outside of the business or open up shop temporarily in a setting such as a public square or flea market, they are in many cases exposed to liabilities that might not be covered under other insurance policies. Kiosks, food trailers, vendor stands and catering trucks are common examples of this, and in some cases, event insurance may be required by event organizers for each entity present. Any accidents, lawsuits or claims made against one or more of the event’s attendees by another attendee is covered under vendor insurance, ensuring that the business or brand isn’t open to financial liability.
- Claims Are Expensive
Without vendor or event insurance, the costs of a potential liability claim can quickly become expensive. Legal assistance will be necessary – even if the claim is unfounded – and can quickly reach tens of thousands of dollars in some cases. A successful liability verdict against a particular entity could easily be several hundred thousand dollars if true damages occurred to the plaintiff, meaning that the defendant is now on the hook for that sum. Vendor insurance helps absolve liability in these cases and can be purchased as needed from companies such as Best Event Insurance, whether that be for one day, one week or on a recurring basis.
- Litigation Deterrent
Some individuals are known as “professional claim filers”, who look for opportunities to intimidate sole proprietors and small businesses into settling with them over a grievance for a far smaller sum than what a court case would inevitably cost. Brands and individuals who are covered via vendor insurance can post such notifications at their kiosks or in plain sight, deterring these individuals. Even if such a notice isn’t posted, the coverage is still valid. Many of these individuals – upon learning you have event insurance – will suddenly sing a different tune. Reason? They are looking for ways to easily cash out on supposed grievances: when they learn that they would have to deal with filing a potential claim through an insurance agency (as opposed to settling for cash under the table), their complaints and so-called injuries seem to disappear!
- More Event Opportunities
Some event organizers simply will not allow you to setup on the premises without some form of vendor insurance. Because event insurance is very affordable, there is often little to no reason not to have this form of coverage. Rather than being limited to a small number of venues and events in which the insurance is not required, individuals and small businesses will suddenly find themselves being able to engage with consumers and passers-by at virtually any event imaginable.