A while back, we received a submission for a policy for a shop that sells gifts and trinkets from local artists in their store. Once a month, this shop hosts a small outdoor market outside their storefront and allows the artists whose items are featured in the shop to showcase more of their work.
The problem was that the store’s current insurance policy didn’t cover the vendors during the market. So the shop was looking for a surplus lines insurance policy that would provide all parties with general coverage for operations and property coverage for individual stands.
Getting complete coverage for artisan vendors can be tricky. Marketplaces need additional policies to protect the vendors and ensure the venue isn’t held responsible for loss or damage.Even for a pop-up event or a weekend market, getting complete coverage can help mitigate any potential risks.
For the shop that reached out to us, we were able to set them up with one policy that covered their store and the monthly pop-up market.
Filling in the Gaps
Giving your artisan clients the coverage they need is all about understanding their needs and drafting additional clauses that patch up any potential holes. Let’s take a look at some popular additions to a Commercial General Liability policy.
Property Floater or Contractors Equipment
Specialty contractors often have specialized tools to do their job and sometimes have to bring the equipment from one place to another. While a GCL should cover property damage, it’s essential to ensure that the policy includes either a property floater or contractors equipment coverage so if business equipment breaks during travel, your client will be able to afford to fix it or replace it. A property floater can provide coverage for the company’s property that may be used in many different locations. For example, a construction company could use a commercial property floater to provide coverage for tools and equipment located on-site.
Contractors Equipment coverage can help your clients get back to work quickly by providing them with the needed equipment to finish a job. This coverage is broad-ranging and can cover damaged or missing contracting equipment. For example If your client’s tools are stolen, lost, or damaged, and they can’t afford to replace them right away, then they can find themselves unable to work until they have the means to repair their equipment.
Commercial Auto Insurance
If your client has a business vehicle such as a truck or van, they’ll need a comprehensive commercial auto insurance plan. But even if they use a personal vehicle for work, they may still need at least partial commercial coverage for their car.
Personal auto policies sometimes include some business use, but the limits may not be high enough to protect your client’s business. The best thing you can do is look at the client’s personal auto policy and determine how much they need on top of that for total business vehicle coverage.
Tools and Equipment Insurance
If your client’s tools are stolen, lost, or damaged, and they can’t afford to replace them right away, then they can find themselves unable to work until they have the means to repair their equipment.
Tools and Equipment coverage can help your clients get back to work quickly by providing them with the needed equipment to finish a job. This coverage is essential for clients who operate large tools and can easily be added on to a CGL.
Giving Your Artisan Clients the Extra Coverage They Need
In our experience with a store that sells local goodies, we were able to help their insurance agent give them complete coverage. We pride ourselves on being able to generate surplus line quotes effectively and efficiently so you can help your clients get what they need.
If you have an artisan client and need an additional policy to fill in the gaps of their general coverage, you can use our form to get started. The more details you include, the quicker and more accurate our quote will be.
If you have any questions about what your client may or may not need, please don’t hesitate to reach out to us at (713) 955-2130.
Craig & Leicht – Specialty Insurance, Faster