Outdoor markets are enormously popular across Australia. There is no better place to explore handmade art, sample local delicacies, and enjoy a sense of community.
Because of their popularity, many people choose to set up a market stall and try their hand at selling any number of goods. It is a great way to test the waters and learn what people think about various products.
However, before you load up your Ute and head to the market to sell, take a moment to take stock of how much you know about the business end of running a market stall. The Australian Government has various statutes in place to oversee markets and vendors. Understanding what is required so you can operate legally is in your best interest.
Do I Need Insurance to Run a Market Stall?
Insurance on your market stall is one of the best ways to safeguard yourself from the unexpected, which can ruin your business. Whether you sell at a sizeable, well-established market, a small venue, a festival, or even a concert, you need to be protected from potential liability that can cost thousands.
Top Four Reasons You Need Insurance to Cover Your Market Stall
Potential for Being Held Responsible for Causing Damage
Even though you are careful when you set up your stall, things can go wrong seemingly out of the blue. For example:
- A strong gust of wind blows your umbrella into a nearby stall, damaging their products. You did not directly cause the accident, but you may be held liable for the damages. - Someone passing by your stall trips over an unsecured cable and breaks their arm. You could be held responsible for medical bills and other damages this time. - A customer bumping into a stone statue and breaking their toe seems like a situation where you would not be liable. However, you can never tell what judgment may be given.
Being Held Responsible for Your Product Causing Harm
You put all of your care and effort into making your product the best it can be. However, the most minor mistake can cost you thousands. The Australian Consumer Law offers protection for consumers. If they experience loss or damage because of safety defects in the goods they purchase, consumers can seek compensation from manufacturers, distributors, suppliers and retailers. *For Example*
- Your scones are marked as being free of nuts, but a package is mislabeled. A customer with a nut allergy becomes ill after eating one. Even though this was an honest mistake, your customer is within their rights to sue you for damages. - A customer gets food poisoning because your refrigerator is not keeping food properly cold. Again, the incident was not premeditated, but the customer can take action against you.
Protecting Your Products
If you sell at markets consistently, you may want to consider cover for your products while you transport them to and from the market. Accidents while goods are in transit can take a considerable chunk of your profits. *For Example*
- You sell elaborately decorated wind chimes, and on your way to market, you must stop suddenly to avoid an accident. Many sets of windchimes are broken because of the fast stop. Your policy will protect you from a loss in this situation. - You are loading apples into your truck to take to the market when the container breaks, sending apples falling onto the concrete. You stand to lose a profit unless you have the right cover.
Market Requirements
Numerous markets require vendors to show proof of insurance cover for their market stalls. This is because the likelihood of being sued for negligence (perceived or otherwise) increases as the marketplace becomes busier. While some markets have group policies, you are better off if you arrange your own market stall policy that will follow you wherever you go.
What is Market Stall Insurance, and What Does it Cover?
Cyber Liability Insurance is designed to help protect you from claims and support your profitability in the event of a cyber breach or attack.
Potential for Being Held Responsible for Causing Damage
Even though you are careful when you set up your stall, things can go wrong seemingly out of the blue. For example:
- A strong gust of wind blows your umbrella into a nearby stall, damaging their products. You did not directly cause the accident, but you may be held liable for the damages. - Someone passing by your stall trips over an unsecured cable and breaks their arm. You could be held responsible for medical bills and other damages this time. - A customer bumping into a stone statue and breaking their toe seems like a situation where you would not be liable. However, you can never tell what judgment may be given.
Being Held Responsible for Your Product Causing Harm
You put all of your care and effort into making your product the best it can be. However, the most minor mistake can cost you thousands. The Australian Consumer Law offers protection for consumers. If they experience loss or damage because of safety defects in the goods they purchase, consumers can seek compensation from manufacturers, distributors, suppliers and retailers. *For Example*
- Your scones are marked as being free of nuts, but a package is mislabeled. A customer with a nut allergy becomes ill after eating one. Even though this was an honest mistake, your customer is within their rights to sue you for damages. - A customer gets food poisoning because your refrigerator is not keeping food properly cold. Again, the incident was not premeditated, but the customer can take action against you.
Protecting Your Products
If you sell at markets consistently, you may want to consider cover for your products while you transport them to and from the market. Accidents while goods are in transit can take a considerable chunk of your profits. *For Example*
- You sell elaborately decorated wind chimes, and on your way to market, you must stop suddenly to avoid an accident. Many sets of windchimes are broken because of the fast stop. Your policy will protect you from a loss in this situation. - You are loading apples into your truck to take to the market when the container breaks, sending apples falling onto the concrete. You stand to lose a profit unless you have the right cover.
Market Requirements
Numerous markets require vendors to show proof of insurance cover for their market stalls. This is because the likelihood of being sued for negligence (perceived or otherwise) increases as the marketplace becomes busier. While some markets have group policies, you are better off if you arrange your own market stall policy that will follow you wherever you go.
What is Market Stall Insurance, and What Does it Cover?
Market stall insurance is a type of business insurance strongly recommended for any person who is selling their goods at a market, festival, concert, or other venue. It is designed to protect you and your business if something goes wrong at a market event.
The open-air market is somewhat carefree and not overly structured. This increases the chance of mishaps at this sort of event as it adds to the inherent risks of business. As a market vendor, you owe it to yourself to ensure your business is safe from unforeseen circumstances.
Your market stall insurance policy generally will offer protection from charges against you. Usually, it is because of an incident where your product caused some type of loss or damage or because a member of the public has loss or damages caused by your market stall or the items associated with it.
What Types of Business Insurance Do I Need for a Market Stall?
To ensure that you and your business have enough cover, you should have a minimum of public and product liability insurance. Additionally, workers’ compensation insurance is mandated all across Australia if you have employees, including full-time, part-time, seasonal, or casual employees.
What is Public Liability Insurance?
A public liability insurance policy will protect you if someone sustains a loss due to your negligence. This policy covers numerous events like a customer falling, your product spilling and causing a passerby to slip or other similar losses. It is easy to imagine the significant number of occurrences in a crowded market. Especially when you consider there are so many sights and sounds.
What is Product Liability Insurance?
Product liability insurance offers protection to you and your business against claims regarding a loss or damage sustained as a result of your product. This type of insurance is vital if you make and sell food products or beverages. As you can imagine, every year, many examples of honest mistakes in product labelling lead to consumer illness. No matter how careful you are with your ingredients, you only need to make a single error to plunge you and your company into financial ruin.
Whether you have your sights set on becoming a well-known international brand one day or if you enjoy the atmosphere and want to make a little extra money, there is a place for you at a market. Once you are up and running, you need business insurance protection to keep you and your business safe from mishaps and unforeseen events.
When you contact Grace Insurance, one of our insurance experts will work with you to make sure your insurance needs are met. You can count on Grace Insurance to help you get the proper cover in place. Our team listens and understands that you need to strike a balance to maintain insurance protection and cost-effectiveness. So, you do not need to be concerned about a hard sell or inflated coverage you do not need. We will put our years of experience to work protecting you and your dreams.
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.
All information above has been provided by the author.
Grace Insurance, ABN 63 133 156 742, AFSL 233750
This article originally appeared on
Grace Insurance Blog
and has been published here with permission.
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