Ontario Vendor Insurance

Insurance For Ontario Vendors

Vendors always have a degree of passion. While people in the sales industry as a whole are known for their infectious charisma, there's an added level of true emotional warmth when someone is selling something they made themselves. While it is certainly possible for someone to hype themselves up to sell some item where they're just the intermediary, the idea of seeing people fall in love with something you made yourself can't be matched. However, selling as a vendor has plenty of risks.

When you're both the craftsperson and the face of the company, you are solely responsible for any minor imperfections that could cause harm. While surely you're taking every step you can to ensure that your product is safe, small issues have a tendency to slip through the cracks, especially when you're selling on mass. Vendor Insurance is the level of protection you need if something goes wrong.

What Is Vendor Insurance?

Vendor insurance is a form of business insurance that financially protects the policyholder from the possibility of several legal costs that come with the risk of being a vendor. For example, one of the items you sell ends up causing someone an injury. Vendor insurance can provide you with the peace of mind that even in the event of something of this nature happening, you will be able to continue selling your products without worry of an end to your business.

Is Vendor Insurance Mandatory In Ontario?

Vendor insurance is not legally mandatory in Ontario. However, it is highly recommended for anyone who is running a vendor business who attends markets, fairs, and exhibits. It is also important to note that the event organizer may also require that all vendors have proof of insurance available to ensure that they are covered for the duration of the event.  Although there are many things that you can do within your control to reduce the odds of a loss or accident, you can not remove these odds entirely. Even the most careful, cautious person who takes every reasonable precaution could end up on the receiving end of a one-in-one-million event. Someone who chooses to have the protection of vendor insurance will likely be covered in most scenarios, while someone who forgoes this opportunity will instead need to pay out of pocket for any costs associated with the incident. For this reason, it is important that every eligible business gains the protection of vendor insurance.

Who Needs Vendor Insurance? 

If you are planning to sell goods at trade shows, fairs, markets, or events, you require vendor insurance. This is not just a recommendation, as many event organizers will require you to have proper vendor insurance. There are plenty of types of businesses that benefit greatly from the acquisition of vendor insurance. Some of these are as follows:

• Stationary food trucks
• Arts and craft vendors
• Custom wineries
• Anyone selling something during fairs

Please note that this is not a complete list, as many other places will benefit from the protection provided by vendor insurance. If you would like to know if you are eligible for vendor insurance, would like to know more about how your business would benefit from the protection or would like a vendor insurance quote, your Morison Insurance broker will be happy to provide you with the answers you seek.

Why Do I Need Vendor Insurance?

Vendor insurance provides a level of protection that no amount of careful planning can make up for. Depending on what you sell, you expose yourself to claims related to many forms of bodily injury & property damage to your clients and their possessions. Maybe one of the products you sell causes a dangerous allergic reaction in one of your customers. One of the items you bring to art & craft fairs might incidentally injure a vulnerable customer who decides to hold you responsible. These are all situations that could end up with you needing to pay large amounts of money if you didn't purchase vendor insurance. If you would like to know if you would benefit from vendor insurance, please contact your Morison Insurance broker, and they will be happy to let you know.

What Does Vendor Insurance Cover? 

Vendor insurance provides protection for a wide variety of risks that vendors expose themselves to due to their individual circumstances. Food vendors, for example, expose themselves to risks like allergies, damage caused by cooking equipment, injuries caused by food being too hot or too cold, and many other situations. Smaller wineries expose themselves to all the risks involved in the distribution of alcoholic beverages. Anything sold with a variety of small pieces could end up injuring someone if they use it in a way that isn't foreseen by the one who built it. The coverage options that you have as a potential policyholder include the policies listed below. If you would like help knowing which of these coverage options would be best for you and your insurance needs, it is recommended that you contact your Morison Insurance broker.

Commercial General Liability Insurance

Commercial general liability insurance protects vendor owners from a wide variety of legal liability claims for which they can be held legally responsible. The most common claims that are covered by commercial general liability insurance are bodily injury or property damage that a customer suffers. In the case that you are found responsible, having commercial general liability insurance as part of your vendor insurance policy will ensure that you are financially covered if such a case was to occur.

Product Liability Insurance

Product liability Insurance has some similarities with commercial general liability insurance but covers different circumstances. Product liability insurance protects you when the product you sold is what dealt the damage. A situation such as a child's toy that ends up harming the user or a haircare product that ends up damaging the user's scalp would be covered by product liability insurance.

Commercial Property Insurance

Commercial property insurance protects your business in a very different way, as it protects in the case harm comes to you and your business, not a client or customer. As the name suggests, it will reimburse you in the event that damage is done to your property.

If, for example, your stationary food truck is damaged by vandals overnight, causing much of the expensive equipment within to no longer function, or the location you own or rent out where you construct your hand-crafted goods is damaged in a fire. Such damages would be very costly to pay for out-of-pocket, simply due to how expensive it can be to replace or repair such items. Commercial property insurance is in place to reimburse you for such costs, allowing you to be able to continue with your business as usual without such large setbacks.

Party Alcohol Liability Insurance

Party alcohol liability insurance, also known as PAL insurance, protects you if you are hosting an event that includes alcohol. This level of coverage might be necessary if you are hosting an event on a property that you are renting out for the event. Even if it is not mandatory, the chances of an accident increase a lot in situations that involve alcohol, and PAL insurance is your best defence against having such an incident causing your business catastrophic harm.

Does My Vendor Insurance Policy Cover Multiple Locations and Venues?

It is very common for vendors to attend a variety of shows, fairs, and exhibits throughout the year, and you will want to ensure you are protected no matter where you go. Luckily, most vendor insurance policies can cover you in many locations on the condition that you let your insurance company know what events you will be attending.  It is also common that the organizer of the event will be required to be added to the policy. This can easily be done by contacting your insurance broker. To find out more details about your coverage, get a vendor insurance quote, or simply ensure that you are covered in each place you plan to go, please contact your Morison Insurance broker.

How Much Vendor Liability Insurance Do I Need?

It depends on your situation. Each vendor has different needs based on their unique situation. If you are unsure about which aspects of vendor insurance are most relevant to your particular business or would like a vendor insurance quote, it is recommended that you speak with your Morison Insurance broker, and they will be happy to answer any questions you may have.

How Much Does Vendor Insurance Cost?

It is understandable to want to know the cost of vendor insurance. However, there is no set price when it comes to insurance policies, as there are many different factors that come into play. To receive an accurate cost, contact our Morison Insurance brokers to get a vendor insurance quote. We are happy to help! 

What Factors Determine The Price Of Vendor Insurance?

There are many factors that could possibly impact the price of your insurance policy. These include the following:

• What is being sold
• The level of experience of the policyholder
• The amount of coverage required
• The level of risk associated with the specific vendor
• The claims history of the vendor
• The size of the deductible
• Any safety precautions taken by the vendor
• How high you want your coverage limit to be

Please note that this is not a complete list of factors and that each insurance company will almost certainly weigh different factors in their own ways. If you would like to know more factors that could impact your premium or to receive a vendor insurance quote, please contact your Morison Insurance broker. 

How Can I Lower The Cost Of Vendor Insurance?

It is understandable to want to know how much you will be paying for the peace of mind that insurance can provide. Luckily, there are a few factors within your control that you can use to lower your premium. These include the following:

• Enacting good workplace safety precautions and other good risk management techniques
• Increasing your deductible
• Doing a good job of maintaining your equipment

Please note that this is not a complete list of actions you can take to lower your vendor insurance policy premium. If you would like to know more ways you can lower your costs or would like a vendor insurance quote, please contact your Morison Insurance broker.

Where Can I Get A Vendor Insurance Quote?

You can get a vendor insurance quote from Morison Insurance. Morison Insurance is a family-run insurance brokerage that has been operating for over 100 years. Over that time, we have maintained our place as a 5-star brokerage by treating our clients as an extension of our family. Give us a call today at 1-800-463-8074 or fill out the form on this page to get started with insurance coverage tailored to your needs. You'll be happy you did!

This content is written by our Morison Insurance team. All information posted is merely for educational and informational purposes. It is not intended as a substitute for professional advice. Should you decide to act upon any information in this article, you do so at your own risk. While the information on this website has been verified to the best of our abilities, we cannot guarantee that there are no mistakes or errors.