Farmers Market Vendor/Food Cart Food Truck Insurance
Sterner Insurance Agency - Apple Valley, MN - Your Farmers Market Insurance Experts
Product Liability for Farmers Market Vendors
Designing, manufacturing or distributing a product is an exciting venture. However in our complicated world simply selling a product has become cause for concern, and moreover a product liability exposure. So much so that many wholesale and retail operations and venues require that you as the manufacturer, distributor or wholesaler have products liability insurance on the items you develop. Additionally, as a retailer of these products, you may be held responsible if there is an injury that results out of use of a product you sell.
What is Products Liability Insurance?
Products Liability Insurance Coverage covers the policy holder in the event that a suit arises out of the use of the insured's products. This can be loss to personal property, business property, injury or death. These items may be clothes, toys, tools, building materials, electronic devices or even pet food or supplies.
What does Products Liability Insurance cover?
Liability insurance is designed to protect the business against losses even if they are negligent or liable for damage, injury or loss to another's property. Typically, damages, legal defense fees and settlement charges are paid by the insuring company when a claim is filed against the business as a result of a Products Liability Suit. Products liability insurance will cover the insured for suits that arise out of damage or injury of use of a product that the holder of the insurance policy manufactures or sells.
Liability coverage may pay the affected person or firm for the cost of care, the loss of services and restitution for death that results from an injury.
In the event your business or product causes damage to, or causes the loss of use of someone's property. Property damage liability coverage may pay for the value of the physical damage to the property; or the loss of use of that property.
Who Should Have Products Liability Insurance?
Anyone that is responsible for the design, manufacture, sale or distribution of a component or end user product. This applies to any business or individual that manufactures his own product or even if the product's manufacturing is subcontracted out buy another operation, even if the operation is overseas.
How is a Products Liability Insurance Policy Rated?
A Products Liability Insurance Policy is rated on several factors.
What is the product you are covering
How many of these products will be distributed into the market
What are they used for and who will be using them
How long are they intended to last
What are they made of
How clearly defined are the usage instructions, directions and guarantees and or warantees that are provided with the product
What claims does the manufacturer or distributor make about the product, either in writing, demonstration or in media.
What Does Products Liability Insurance Cost?
Products liability insurance costs are much like any other liability insurance product. There no real average rate because they are based on the specific type of product you manufacture, retail or market. There are some products that pose very little potential to cause harm or damage and there are others that have a higher propensity to be risky, and therefore carry higher premiums.
What types of products need products liability insurance?
Essentially any product that is put into market or sold in any venue should have products liability insurance. Some examples are food, clothing, tools, energy products, furniture, stationary goods, beverages, baked products, luggage, pet items, heating & cooling apparatus, electronic goods, vehicles, toys (especially).