First, we know you are not even going to consider opening your biz without insurance. If Kucinich can sue for an olive pit, no one is safe. Especially a small, underfunded crêpe cart. I mean, have you ever heard of an overfunded food cart? If we were overfunded, we’d be in a brick and mortar spot, right? Of course right. So we ares selling products for 3-8 bucks. And carrying $1,000,000 in insurance. That is a lot of crêpes. That pretty much insures us, the owners of the property we are sitting on, our vendors, and so forth. And we can get free certificates to hand out to market owners and sponsors. What is a Named Insured But for many organizations, our proof of insurance is not enough. They want a Certificate naming their festivfal, fair or farmers marked as a “NAMED INSURED.” “Typically, a larger and more powerful business will require that smaller entities (desiring to do business) have the larger business named as an additional insured.” (Wikipedia) This is simply because someone suing will go after the “deepest pockets.” And those are not our pockets, you can be sure! That puts us little guys in a spot. Some insurance companies require a fee for changing an existing policy. Our charges about $150 to add a named insured. So if we go to a new farmers market, we need a fews things:
- Business license for that county or city ($100-$200)
- stall fees ($10-$40/day for markets, 50-2,000 of an event))
- health license ($100-$200)
- Add a name insured (one or two) to our policy ($150)
So a new market or a new venue can cost quite a bit before selling one crêpe. Cost of business. but let’s control costs where we can. Here is the money saving tip: If you are starting out, like us, the way to avoid the additional cost is to provide your agent with a list of every venue you may possibly attend, say in your first year. Provide the names, address and contact info. It may take some digging and research to do so. But it is time well spent. It will also help you decide what opportunities to pursue. And heaven know, focus in the startup phase is critical. Do your Homework But do your research. For example, one farmers market in Oregon needs the city, the market and their “Friends of the market” non-profit listed before we can participate. By reading all of the details on their website, we found this out ahead of time and saved a costly policy change. This factor helped us decided to travel no farther than 50 miles from Silverton, with two specific exceptions for festivals.