Farmers Market: Proper Risk Management

It’s finally summertime! We have waited all winter long for warmer temperatures. Well, they are certainly here, which means it’s growing season. The local farmers market will be opening soon, if it hasn’t already! You can probably taste those red, juicy tomatoes and buttery corn on the cob as you read this.

Considerations for proper risk management at a farmers market

Vendor at the produce markets.

Owner of a roadside farm stand.

Organizer of a full-fledged farmers market.

There are considerations that need to be made for proper risk management. A farmers market in general is a very low risk operation. Consequently, the insurance premiums typically reflect the exposure.

Even though risks are low, you need to consider an insurance policy that mitigates your financial risk. In other words, decrease your exposure in the event of a claim. Here are some things worth considering:

1. Contaminated food or products sold causing physical illness to the buyer.
2. A customer slipping and falling on location. Or an injury at a vendor booth.
3. Vehicles colliding while at the farmers market or in transit to and from the market.
4. Wind catching a vendor tent or stand and causing damage to other people’s property.
5. Vendor or farmers market employee making a lewd comment about a customer or market goer.
6. Inventory and business personal property that is stolen, lost in a fire, or damaged in a weather event.

A lot of times minor occurrences can be settled outside of litigation. However, what if the situation is more severe? Litigation and attorneys may be required to settle the incident. Purchasing insurance to cover the above-mentioned situations can be extremely helpful. Essentially, insurance will help pass the risk and costs to an insurance carrier instead of paying with personal funds.

Why bother with an insurance policy for a farmers market?

Here, the insurance policies are intended to pay the following…

• Settlement costs
• Attorney fees
• Property damage costs
• Assist in keeping a solid reputation for the farmers market, produce stand, vendor, and managers alike

Keep in mind not all policies are created equal! Make sure you discuss individual needs and plans with an independent insurance professional, like ours at Hitchings Insurance Agency.  

Mitigate your risks

Whether you are selling honey, freezer beef, home grown fruits and vegetables, or landscaping supplies, there is likely a cost-effective solution for you.  As of late, nearly all commercially run farmers markets require some type of liability insurance policy to even participate as a vendor. We can help facilitate the policy. Additionally, we can provide proof of insurance coverage to the market. Ultimately, this will help mitigate your risks. Gone are the worries about a financial hardship due to an accident or incident at your produce stand, farm stand, farmers market, or the like.

Thank you…

We appreciate all you do to help feed our community! The hours are long, but your dedication and commitment to tending the land does not go unnoticed. The people at our agency love agriculture and getting to know the intricacies of each farm operation. As a result, we also value the importance of making sure you are properly insured. If you haven’t already, check out another one of our blog articles. We are here to help in any way to make sure your craft in agriculture is protected!

Special thanks to Ryan Pessell, insurance professional, for providing the content of this blog.