Establishing a booth at your local farmers’ market? Perhaps joining a food truck lot? Planning an event in Roseburg, Oregon? Yep, you will need insurance for that. Generally, the host or sponsor of the farmers’ market or event will require you to provide a Certificate of Insurance (COI). The COI shows proof that you have at least $100,000 in liability, with them listed as a “certificate holder” or “additional insured”. If you are joining a food truck lot, the same stipulations apply: $100,000 of liability insurance and perhaps as much as $1,000,000.
Liability insurance provides for accidents that may occur in or around your booth or truck. Let’s say someone falls or cuts themselves on the edge of your table or bonks their head on the open food truck window, for example, and they need medical help. The sponsor of the farmers’ market or event (or food truck lot) would like to see your insurance pay for that, not theirs.
You will need to decide on your business structure (sole proprietor, LLC, etc.) before you can purchase your liability insurance. That determines who is insured under the policy. Be ready to provide general information for the owner, past and anticipated sales, even if it is a guess, and a description of what you are selling. Believe it or not, that description must be at least ten words long. You can’t just say “I’m selling Tamales”.
Applying for liability insurance is easy, and right now the premium is about $600 (plus taxes and policy fees) annually. Yes, you can finance that with interest. It will cover all your events for a year, as long as your business model doesn’t change (if it does, let your agent know so they can update the coverage). Simply call your insurance agent and let them know you need a new COI naming the event organizers as the certificate holder.
If you’re working alone, that’s pretty much it. Apply for your insurance, make your payment, and then get your certificate. The certificate can take a few days, so don’t delay too long. If you apply for the insurance on Friday for an event on Saturday, you might be out of luck.
Have employees? Well then, you are going to need Workers’ Compensation insurance as well. Be prepared to give the number of full-time and part-time employees as well as actual or anticipated payroll figures. Also, specifics of exactly what tasks the employees will perform. You will need to file a COI with the Oregon Bureau of Labor & Industries.
Keep in mind that both liability and workers’ compensation insurance policies are auditable. So be as close as you can to what you expect for sales and payroll. If you are too far off in the end, you will get a bill for the difference. That’s not fun.
