WSFMA Member Farmers Markets

Unfortunately, regular farmers markets activities include risks to customers and property. To manage this risk, WSFMA member farmers markets are required to have general commercial liability insurance so that you are protected against physical injury to people or damage to property arising from your daily operation. To manage our potential risk, the “Washington State Farmers Market Association” must be named an Additional Insured. Member farmers markets are required to provide the WSFMA with a copy of their “Certificate of Liability Insurance” with their annual membership application or soon after. (An uploaded or emailed PDF works well.) Please note:

  • If the policy includes a “Blanket Additional Insurance Endorsement” then that means that WSFMA and all other parties are already covered as “Additional Insured” and do not have to be specifically named on the Certificated of Liability Insurance.
  • The Additional Insureds are usually noted in the “Description of Operations” box.
  • Be sure to get ask your insurance agent how much it will cost (if anything) for your Additional Insureds.
  • A “Certificate Holder” is an entity that will be notified if the insurance policy is canceled before the expiration date on the policy.
  • For a good visual breakdown of a Certificate of Liability, please see a Sample Acord Certificate of Liability Insurance 2019 provided by Larry Spilker of Campbell Risk Management.

Coverage Limits

Farmers markets’ insurance limits vary with the amount of risk they are exposed and should consider the number of vendors, shoppers, market days, and other factors.

Typical limits for farmers markets are:

Each Occurrence:   $  1,000,000
Damage to Rented Premises (Each occurrence):   $  100,000
Medical Expense Limit (Any one person):   $  5,000
Personal and Advertising Injury:   $  1,000,000
General Aggregate:   $  2,000,000
Products – Completed Operations Aggregate:   $  2,000,000

Additional Optional Coverage

Please check with your insurance agent to make sure you have the right insurance products for your farmers market. Additional coverage you may consider includes:

Host Liquor Liability. This covers the market if licensed/permitted vendors or outside contractors are serving and collecting money for alcohol sales on behalf of the market (including wine and beer sampling).

Retail Liquor Liability. This coverage is necessary when the market itself is dispensing or collecting money directly for alcohol sold (e.g., at a fundraising event).

Special Event Insurance. The basic market insurance policy is designed to cover incidents arising out of regular market activities. If the market holds special events such as an annual auction, fundraising dinner or BBQ Cook-Off, these events can be covered by Special Event Insurance. It tends to be very affordable if you add it to the policy at enrollment time. If you purchase it later in the year or when you have an event, it may be much more expensive.

Directors and Officers Liability Insurance. This insurance is typically a separate policy and covers liability for the board of directors. 

Campbell Risk Management

Campbell Risk Management has worked nationally to develop insurance policies for farmers markets and for vendors. They offer insurance through the Hanover Insurance Group that is admitted and A-rated. They have an online application for markets and vendors and have partnered with the Farmers Market Coalition.

General Liability Insurance premiums are based on estimated annual gross market revenue. This is revenue the market receives from “space rental,” including vendor stall fees, membership fees and direct sales of market promotional items (and excluding grants, sponsorships or donations). Premiums start at $275 for markets with gross revenues of $0 to $50,000 and $525 for those with $50,001 to $100,000.

In May 2019, Campbell Risk Management started requiring farmers markets to require that their vendors maintain a commercial general liability policy.

For questions, quotes for specific additional coverage, additional insured certificates or claims information, please contact Larry Spilker at Campbell Risk Management (800) 730-7475 Ext .203 or by email at lspilker@campbellrisk.com. 

Additional Insurance Agencies

The WSFMA is currently working with member markets to research insurance agencies in Washington State that insure farmers markets. Please email info@wafarmersmarkets.org for more information.

The WSFMA requires that underwriters have an Insurer Credit Rating of A.

The WSFMA recommends insurance coverage that is admitted. “Admitted” means that the insurance company “has been formally admitted or licensed to operate by the state insurance agency where the company operates.” This means that it must abide by all Washington State insurance laws and regulations. It also means that “in the event the insurance company fails, the state will step in as necessary to make claim payments. With a non-admitted insurance carrier, there is no such protection” (Investopedia, 1/6/2020).