Liability Insurance

18 years ago

I am planning/daydreaming about doing vegetable marketing when I retire in about 6 years. Maybe sooner if my boss finds out how much time I'm spending on the GardenWeb Site.

Anyway I was wondering about the liability aspect of selling edibles to the public. I'm also toying with the idea of selling homemade pickled jalapenos and salsa. I've seen other people doing it but I wonder if you have to carry any special insurance to protect you in case something goes bad and makes someone sick and they want to sue you. Does anyone have any insight on this. I will be a small operation selling out of the back of my truck at small farmers markets and possibly along side the road. What kind of insurance do some of you carry, if any, if you don't mind me asking?

Thanks

Featured Answer

anniew

18 years ago

Certainly if you sell anything you want liability insurance, as someone can trip over something and sue. You would also want product liability to cover the instance if someone got sick OR CLAIMED THEY DID.
Anyone can sue for any reason or no reason and the insurance would give you a place to turn to to defend your case. Plus, if you were deemed to have some liability for the whatever, you'd be covered as long as you weren't negligent.
With my insurance company in Pennsylvania, I can get a rider on my homeowners for only about an exta $30 a year. This gives me liability and product liability, at my farm stand as well as at Pennsylvania farmers markets. However, if I go to a New York State market, I would not be covered unless I switched to a farm policy which would cost me twice as much as the current homeowners.
Each state and insurance company has different rules which you should check out by going to a couple or more insurance agents to see what they can give you.
I personally don't want to risk losing everything by someone who is suit happy, so have the inexpensive rider on my homeowners.
Also, regarding pickles or whatever, in PA you are required to have a certified kitchen (through the Dept. of Ag). In some states, acidy product don't require a separate kitchen and you can get a home kitchen certified with water tests and certain other standards. Usually you are not allowed to have household pets that have access to the kitchen. Some states may do their certifying through a Health Dept. You just have to investigate it for your particular state and perhaps municipality.
Ann

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Comments (9)

ohiorganic
18 years ago
I thought about getting liabilty insiurance about 10 years ago bvut at the time the premiums were running close to 25% of my annual gross at the time so could not afford it. Since than have not been sued by my customers. And since I do not make anything close to a king's ransom nor own property at the moment they would not get much from me.

Farm Bureau and Farmers' Union both sell farm liability policies and not many other places do.

I probably will pick up liability insurance for next year as i will be buying a farm and having an on farm store and likely other vendors on site and will need it than.

Before getting into selling canned goods be sure to know your state's rules concerning the sales of home canned items. Most states require a licensed kitchen to be legal
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Ok I will share my homework. Agent from either Farm Bureau or farmers union ins. said it would be covered under my general farm liability policy. I don't think he knew what he was talking about, but you might check those 2. farmers mutual who I have my farm policy with $500. That farm policy may be moving. Shelter ins- agent talked to the underwriter and I would be a fruit, nut and veg distributor. coverage $500,000/$1,000,ooo premium $100. Very doable and almost a no brainer. Sure don't need to lose my farm for a few tomatoes.
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A smart insurance company has finally put together an insurance program for all types of farmers markets vendors! The program provides the vendors with group rates for $1,000,000 in general and product liability per occurrence with a $2,000,000 annual aggregate limit and a zero deductible. This will cover the vendors while at all markets that they participate in. Note that there is no limit on the number of markets in which you can participate. The only requirement is that all such markets must be listed on your application for coverage to be provided. The cost of the policy is $350 per year for vendors that generate less than $100,000 total annual sales at the markets listed. For those vendors that generate in excess of $100,000 in annual sales, the cost of the policy will increase at a rate of approximately $5 per thousand of sales. Premiums are paid annually and once coverage is extended, the premium is fully earned and non-refundable. Coverage is provided by an A rated insurance company. The policy will also name the market as an additional insured so that in the event of a product liability or general liability suit where both parties are named, the market is covered. Visit their website www.campbellriskmanagement.com for more information and vendor insurance applications, or call or email the person below for more information. Larry Spilker Campbell Risk Management 800-730-7475 ext 203 lspilker@campbellrisk.com Here is a link that might be useful: Farmers Market Vendor Insurance
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snappybob
Original Author
18 years ago
Thanks for the info. That will be good food for thought.
benedita
18 years ago
Most farmers markets require liability insurance. I know most of the markets in New York City require at least 1 million in coverage that covers both general liability (ie your table falls on a customer's foot) and product liability (ie someone breaks a tooth on your cookie).

Cost of this coverage can vary significantly. If you already have a commercial or farm package it can usually be added cheaply to your policy. If you don't already have such a policy, it's not cheap.

Since 2000, I have been seeing a lot of insurers drop truck farmers who sell in NYC. More have been substantially raising premiums.

Good luck.
sandy0225
18 years ago
Here in Indiana, you don't need liability insurance to sell at most farmers markets. Home canned goods have to be canned in an inspected kitchen, that can be done by the state board of health, in this county. But one county over, anything goes. So that might be a loophole for you. You can always sell a little further from home! To sell eggs, you have to have an egg vendors license,($50) at farmers markets--so I only sell mine out of my house with a cardboard sign out front. Since I don't have that many hens, that works for me. Churches are a great place to sell things, lots of churches around here have fall flings and other social events when you can set a booth up, usually for free.
ohiorganic
18 years ago
Wow the egg liscense is upto $50 now? It was only $20 a few years ago when I was selling eggs in Indiana. makes me glad when i get back into egg sales i will not be selling any in Indiana. Ohio has no such fees.

Afterf buying a farm this week I have found most home/farm owner insurance will put a rider on the policy for liability for well under $100
Melissa_in_NE
18 years ago
I was not able to get a rider on my homeowners policy because we have 2 businesses running on our farm. We did get a separate policy that covers all of our orchard & farming equipment and 1 million in liability on our farm, farm stand and any farmers markets we go to. The cost was 750.00 a year.
Melissa in NE
Sue_in_Colorado
18 years ago
We're in about the samepostion as Melissa - I can't get a rider on our home policy either. Virtually every market in this state requires liability insurance. Ours covers farming equipment, our GH, and liability. It was $750.00 until 2 years ago when we had a massive late spring storm that dropped about 3' of wet, heavy snow all over the area. Destroyed our hoop houses, etc.

$750.00 seemed like a lot until we made a claim that covered our cold frame and every seedling we lost that was going to be marketed or put in the ground. They came through in a timely manner & were very good to us (I'm about the only person I know who has nothing bad to say about their insurance people). We had a 'forensic accountant' (great job titile, huh?) come out & review our books, growth, etc. Overall not too bad an experience.

Our premium is now $825.00/ year, but in hindsight worth evey penny.
Flat_Land
18 years ago
I've posted here several times before asking general questions about insurance and have the opportunity to report what I found. My market requires a GL policy with no specified amount. However $400 buys 500k for liability yearly. Because I pressed my agent it covers not only all markets for a year but also anything that might happen on my land (which is seperate from my house) and driving for any business related purpose. The difference between 100k and 500k is about $100, it is not a straight ratio. Policies and prices vary widely! Ask a market manager or several other vendors, they usually have good information.

Liability Insurance

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