There are roughly over 700 farmers’ markets in the United Kingdom, half of which are certified by FARMA. However, before you can set up your stall and act as a vendor, there are a few things you should keep in mind. For one, you must put in the research regarding the type of producers and whether there will be similar items sold at the market.
Once you have established there is a market for your product and a potential for profit, you must then do what you can to mitigate financial risk. Regardless of the type of business you run, there is always a chance that an accident can occur where you or your business is deemed responsible. If a customer were to get injured and need medical treatment, the cost of this incident can escalate into the millions of pounds.
Were that to happen your financial livelihood would be put in jeopardy. Public liability insurance is designed to safeguard yourself from such a tragedy by covering all your legal expenses as well as the legal and medical costs of the claimant.
Types of Liability
With public liability insurance, most brokers will offer packages with up to £5 million of cover for entitlements awarded for injuries or property damage. Typically, a judge may find you or your business negligent for any accident that occurs during the course of your business, whether it involve a sale, service, or the use of the products you sold. As a grocer, the most common insurance you will need is products liability.
As the food you sell will be ingested by your customers, there is always the possibility of some sort of allergic reaction. Contamination of food products is also a real possibility, and having insurance protection will defray the cost of the lawsuit should blame be ascribed to your business.
Shopping for Insurance
When shopping for insurance or looking for advice on how to manage your stall, it is always good to take advantage of a network of fellow market traders. FARMA, for instance is a group of producers and retailers that can assist you with finding a good broker. There are pros and cons with all brokers, and no policy is the same. Cheaper plans will likely come with less coverage. However, some cover may be deemed superfluous given the type of business you run. Regardless, public liability insurance is an important decision.
A good strategy to adopt is to set limits before you shop for insurance. For instance, first determine how much you can afford, and remove any insurance product from your list that does not fall within those parameters. Next, determine what type of cover you cannot do without. Also keep in mind that some cover may be available for cheaper when bundled with other policies, particular product liability and employers’ liability if you have a staff working under you.
Often times those looking to sell at the farmers market neglect the risk involved because the operation is small. However, like any big vendor, the fact that you interact with customers means there is always a chance an accident will occur. In this increasingly litigious society, an injury could result in a claim that ends up costing you thousands of pounds and threaten not only your financial health but the reputation of your business.