Between late March and Memorial Day, all the regional farmers markets will be kicking their seasons into high gear. Before spring is even fully underway, there will also be a slew of vendor events, craft fairs, and pop-up shops. The revitalization of local maker/producer businesses has received enthusiastic support all over Bucks and Montgomery Counties, and we’ve seen many small businesses grow into thriving operations.
The sheer number of local opportunities to set up a booth presents small business owners with a personnel challenge. The majority of markets and events take place on weekends, and owners simply can’t be in multiple locations at once. Rather than choosing to only sell goods at one place at a time themselves, many small businesses are hiring event staff to maximize their brand awareness and sales around the region. Any addition to how a business operates comes with a new set of risks. At Smyrl Insurance, we walk small business owners through all the insurance considerations of expanding operations to participate in local markets.
Commercial Liability Insurance for Offsite Operations
Commercial liability coverage is essential to your business. But that coverage is written specifically for the way you are operating your business when you first obtain the policy. If participating in farmers markets and vendor events is a new aspect of your business plan, your policy needs a close review before you venture offsite.
Most liability policies list specific locations where your coverage applies. If you are only covered for your storefront or your production location, you could be setting up at markets without any protection. This is bad enough if it’s just you working the markets, but it’s a serious risk if you’re paying employees to be there. Accidents happen, things go wrong, and people make mistakes.
The liability risks encompass your business footprint, your employees’ actions, and your products themselves. Here are a few examples of things that create insurance claims in the craft fair or market setting:
- Someone trips over your table leg or product display and gets hurt.
- Your improperly staked canopy takes flight in the wind and crashes into a person, another vendor’s products, or a car in the parking lot.
- An employee forgets to name the allergens in your consumable product and someone has a reaction. • Someone picks up or mishandles your handmade product and causes an injury.
- The heat spoils your food item, or wind blows dirt and debris into it, and someone samples the contaminated product.
The reality of the world is that wherever people are gathered, there is potential for calamity. You can’t prevent every mishap, but you can be properly covered when one occurs. Our agents always ask whether or not a new business client is participating in these types of events so that we can go over the policy needs for solid protection.
Workers Compensation for Part-time Employees
When you hire the right event staff for your spring and summer markets, it can provide a huge revenue boost for the business. The person running your vendor booth quickly becomes one of the faces of your brand. If they are personable, knowledgeable, and good at sales, these offsite locations will enhance your business growth.
Whatever employment model you choose for your event staff, make sure you have solid coverage for their protection. Some businesses prefer to keep these seasonal employees on a contract 1099 arrangement, while others like the benefits of adding them to W-2 payroll. Of course, some operations rely on the kindness of family and friends to volunteer their time to help out on the weekends.
Regardless of how or if you’re paying your staff, you need to have insurance for the time they spend representing your business. What happens if they get hurt while working your market event? Considering the very part-time nature of this work, could their getting hurt interfere with their full-time job?
Workers compensation coverage is limited to paid employees in Pennsylvania. Independent contractors and volunteers who get hurt still need to know they are protected under your business. This may be a compelling reason to add them to payroll, or we can discuss the options under your general liability policy.
Proper Training Provides its Own Insurance
While insurance is necessary to protect your business and employees in the event of a claim, preventing the situations that cause claims is always the best insurance plan. Hiring event staff for weekend and night markets can be tricky. You have to find that special someone who doesn’t mind giving up their free time for relatively few working hours. Business owners often turn to friends and family to help them out as a favor.
Don’t fall into the trap of letting your event staff dictate the terms of their commitment. If they are willing to help you, they need to be willing to follow your detailed training and procedures. This has to be non-negotiable, even if it means losing potential helpers. Proper training is how your market employees protect themselves, your products, and your business.
Never assume that your event staff can figure out how to run your booth on their own. Train them to set up your canopy, tables, displays, and products correctly and safely. Ensure that they can carry everything needed from the car to the location, or that they know how to use equipment that can help them. Teach them proper handling techniques, food safety guidelines, and packing requirements. Make sure they know your product details so that they can give customers correct information. Finally, teach them how to respond if anything at the market is threatening their safety or the product integrity.
If you have multiple employees working at multiple markets, documented procedures will go a long way in creating a consistent brand image for your whole company.
Protect and Grow Your Business at Spring and Summer Markets
The opportunities to grow your business through events are thriving all over Southeastern PA. These markets have launched many small businesses to the next level by introducing their brand to buyers who become loyal customers. Protect your business, no matter where you’re operating, with comprehensive commercial insurance.
At Smyrl Insurance, we’re amazed to see the creativity and entrepreneurial drive of our neighbors. We’ve been educating, nurturing, and empowering small businesses through insurance for 70 years to help them grow with confidence. Whether you’re venturing out into craft fairs and vendor pop-ups this season, or you’re about to sign a lease on your brick and mortar storefront, we can guide you through the insurance considerations that are key to protecting your small business. Contact us to review your existing policy or to discuss your initial commercial insurance needs. We serve clients with commercial liability, property, vehicle, workers compensation, and other types of business insurance in Hatfield, Lansdale, Souderton, Harleysville, and throughout the region in Montgomery County and Bucks County, Pennsylvania.
