17 January, 2012

Farmers' markets have seen a huge increase in popularity in recent years, and can be really beneficial to farmers and small businesses. As well as providing a base for you to sell your products, if you don't have your own shop, they are a great way of meeting potential new customers and introducing more people to your products. 

As with any aspect of your business, there are insurance considerations associated with trading at a farmers' market, so we've put together a list of some important things to think about before setting up your stall. 

-  Make sure your Insurance company know that you are selling at a farmers' market.  If you fail to tell them you may not be covered in the event of a claim.   

-  Although it is not illegal to trade at a farmers' market without public liability cover, it is a requirement of most market organisers that you have cover in place before joining. Your public liability insurance will cover costs arising from your legal liability where another stallholder or a member of the public has sustained injury or suffered damage to their property through your negligence. 

- It would be wise to consider taking out products liability cover. This will cover your legal liability for any injury or damage your products may cause to others such as a home-made pie causing food poisoning. 

- Whilst your farm policy may extend to cover you selling your own goods at market it may be different if you are selling someone else's stock or produce. It is therefore important to check with your insurer that your cover is adequate. 

-  If you keep a large amount of stock, it is advisable to take out property cover, which can offer cover against damage by fire or flood amongst other things.   Theft cover may be available but some insurers will only offer this cover if the property is in a locked building. 

-   If you have anyone working for you on your stall, you are legally obliged to take out employers' liability insurance, as you would be if you employed people in an office or on a farm. This includes any 'back office' staff such as bookkeepers or stock takers, as well as the front of house staff running the stall. If people who usually work for you help out on the stand, they will likely be covered by your existing employers' liability policy - however you should make your insurer aware that they are also working at the market. 

-  If you are using a van or truck to transport goods and produce to a farmers' market, you may need to include commercial vehicle cover on your insurance policy. You may also want to think about goods in transit insurancewhich covers loss or damage to your goods whilst they are in your vehicle. 

Finally, if you are planning on selling any type of food product on your stall, you will need to register with your local authority. They will carry out an inspection of your food premises and will be able to advise you of any certifications or licenses you need depending on what you are selling. 

Cornish Mutual offers a range of insurance services including a business insurance package which can cover employers' liability, public liability, property insurance and goods in transit cover. For more information, call our Member Services team on 0845 017 5513 or contact your local Insurance Inspector.