Outdoor festivals, art shows, farmers markets, and pop-up events are great opportunities for local businesses to meet customers and sell their products. They also raise an important insurance question: Does your business insurance travel with you when you leave your regular location?
The recent Clothesline Art Festival in Rochester is a good reminder for artists, makers, retailers, contractors, and other business owners who bring inventory, tools, or equipment to temporary locations. Your policy may provide some protection away from your premises, but the amount and type of coverage can be more limited than many business owners realize.
Liability Coverage and Property Coverage Are Different
When you operate at a temporary event, there are at least two separate exposures to review.
General liability may respond if your business causes bodily injury or property damage—for example, if a customer trips in your booth. Many policies can extend liability coverage to a temporary location, but the event organizer may still require a certificate of insurance or ask to be named as an additional insured.
Business property coverage protects your inventory, tools, displays, equipment, and other physical property. Commercial property insurance is generally centered on the location or locations listed on the policy. Some policies include limited coverage for property temporarily away from the premises or in transit, but those limits may be much lower than the value you are actually taking to the event.
When Inland Marine Coverage May Help
Despite the name, inland marine insurance usually has nothing to do with boats. It is designed to cover certain movable property while it is being transported or used away from the insured location.
Depending on your business, the right solution might be an inland marine endorsement, equipment floater, exhibition floater, fine-arts or dealers form, or another off-premises coverage option. The correct form depends on what you carry, where it goes, how often it moves, and the causes of loss your policy covers.
Questions to Ask Before Your Next Event
- How much coverage applies to property away from my listed premises?
- Is my property covered while it is in transit?
- Are theft, wind, rain, and accidental damage covered?
- Does the policy cover the full value of my inventory, tools, and equipment?
- Does the venue require a certificate of insurance or additional-insured status?
- Do I need inland marine or another off-premises endorsement?
It is much better to answer those questions before an event than after a loss.
Make Sure Your Coverage Fits the Way You Work
Business insurance is not one-size-fits-all. A policy written for property that stays at one location may not fully protect a business that regularly attends festivals, works at customer locations, or transports valuable equipment.
VanScoter Insurance Agency can help you review how your business actually operates and identify potential gaps before you head to your next event. Call us at (585) 663-2004 to schedule a coverage review.
Coverage varies by policy, endorsement, carrier, location, and cause of loss. This article is general information and is not a guarantee of coverage.
