When becoming a Stallholder there is a whole lot of new lingo to learn, from bump in and bump out times, council permits, and insurance requirements. It can all become a little overwhelming! Today we are going to break down the Insurance element of being a Stallholder to make sure you are adequately covered insurance wise when attending a market.
Why is Liability Insurance a requirement?
A Market Organiser may require you to have a minimum of $10,000,000 Public Liability or they may require you to have both Public and Products Liability at a minimum of $20,000,000 (in no particular order). This isn’t the Market Organiser being difficult, it is generally a requirement that has been placed on them by either their own insurer, the council or the venue they run the market from. While it might seem a little overwhelming when looking at insurance options, it is in your best interests to have insurance to protect both yourself and your business. The reasons why are explained below.
Public Liability Insurance
Public Liability Insurance is designed to protect you against Personal Injury and Property Damage caused to third parties arising from your Stallholder activities. The most common claims insurance agencies see generally involve a Gazebo or free standing structures. Claims include damage caused when gazebos taking off in the wind because they are not secured properly, to simply scratching a fellow stallholder’s car with part of your market stall while you’re racing to set up within the bump-in period.
Products Liability Insurance
Products Liability Insurance is similar, though this insurance protects you against Personal Injury and Property Damage caused to third parties arising from the products you have sold at the markets. This covers things such as food poisoning or even allergies. For example if you sold something that you claimed was nut-free but it had accidentally come in contact with nuts and as a result, you caused someone to have an anaphylaxis episode, you will be thanking the lucky stars you had Products Liability Insurance in place.
Limit of Liability
The limit of liability is the maximum the insurer will pay in the event of a claim. We have found more councils are requiring a minimum of $20,000,000 however, each state and area is different, so it is best to have a chat with your organiser about it and follow their recommendations. To trade at the Handmade Canberra Market, we require you to have a minimum of $10,000,000.
Interested Party
Some markets require you to include their business name as an Interested Party on your policy. You should be able to add this on to your policy at no extra cost! Here at Handmade we do not require you to have our business name listed as an Interested Party on your policy, but you should always check the requirements for this with each market you attend.
Excess is Important
Another thing to consider is the excess. The excess is a payment to the insurer if and when they accept your claim. A few years ago, it was a BIG thing to find an insurer with Nil Excess, however, over the last couple of years, this seems to have dropped off but really, it is more important than ever. Make sure you take this into consideration when obtaining quotes as there are still a couple of insurance companies that offer a Nil Excess (our Handmade partner, AUZi Insurance, is one!)
Certificate of Currency
To confirm you have insurance in place with a reputable provider, your Market Organiser or council will require you to provide a digital copy of your Certificate of Currency. The Certificate of Currency otherwise known as COC will outline your insured name/business name, what coverage you have, the period of insurance, and your territorial limits (Australia-wide is the gold standard here), and if you have noted any Interested Parties.
Keep in Mind
The last thing to consider is your Business Description, as a Market Stall Holder policy is designed to cover you as a Market Stallholder. Since the pandemic, Insurance companies have seen a large number of stallholders pivot in order for their business to survive. This has pushed some stallholders into a different category and subsequently affects the policy they have. For instance, if your business has changed and you are now predominantly selling your products online (when you weren’t previously) or have begun wholesaling your products for the first time since obtaining your initial insurance policy, it might be best to have a chat with your insurer and move across to a more suitable policy within the correct category.
Obtaining a Quote and Insurance
Obtaining quotes and placing cover has never been easier. You can jump onto the Handmade Market Insurance Partner, AUZi Insurance, to obtain a quote in under 2 minutes. If you have any questions about selecting an insurance policy, you can contact Nicole Eldridge, Director of Insurance.