NYC Insurance Blog

Coverage Tips for Event Booth Vendors

Outdoor events and tradeshows offer numerous business opportunities unavailable in the fall and winter. However, selling goods at a market or event comes at a risk. It is prudent for small business owners to always protect their businesses. Booth events pose unique risks due to the location and involved third parties. The language used in Business Owners Policy (BOP) is fundamental to ensure you are protected from potential liabilities. If the wording is wrong, business owners can end up underinsured or paying extra money to get coverage for each event they attend. 

What is Blanket Additional Insured Coverage?

A blanket additional insured coverage enables a business owner or policyholder to extend coverage to several third parties without having to name or request status for each third party. If your business entails hiring vendors or third-party contractors, it is important to limit your liability as much as possible. Typically, if you want to include additional insured, formal submissions from vendors or contractors are required. The process is straightforward if you are working with a few entities. However, suppose you are working with numerous entities or companies at any given time. In that case, the process is overwhelming, and you can make mistakes, for example, providing incorrect information or missing some documents. With blanket endorsements, such risks are reduced by including a policy language that extends the additional insured status to any company/entity/third party with which you have a contractual agreement. 

Why is Blanket Additional Insured Language Important?

The wording in the coverage can determine whether you are protected or not. If you own an event booth, consider purchasing additional insured coverage to protect you, your business, and third-party entities. To help you understand why policy language is essential, consider this example:

Assume you own a small farm and sell fruits and vegetables to the local farmers' market. Legally, if you rent a booth, the organizers at the farmers market require you to sign a written contract. As per the contract, you are required to include the farmers market as additional insured in your BOP. With blanket additional insured coverage, the insurer can include the farmers market as an additional insured free of charge. However, if you do not have blanket additional insured coverage, you must pay an extra fee every time you want to rent a booth and add the organizers as additional insured. With blanket additional insured coverage, vendors are protected from potential liabilities. Always talk to your insurance company to understand the policy language used and the type of coverage purchased. 

Blanket additional insured coverage differs from one insurer to another. Some insurance companies offer blanket additional insured coverage at no cost, others offer it at an additional charge, and others do not. Thorough research is essential to know whether your insurance agent uses blanket additional insured coverage language in your Business Owners' Policy. Since coverage varies, it is prudent to ask your insurer if they provide blanket additional insured coverage to avoid paying expenses out of pocket when the unexpected happens. Give us Call for a FREE Quote Today!

---