Business Insurance Requirements for Contractors, Service Providers, and Vendors

November 14, 2022 / By: Stampede Insurance Team
Business Insurance Requirements for Contractors, Service Providers, and Vendors

Insurance can protect against a wide variety of common business risks, including injuries, property damage, and lawsuits. While carrying small business general liability insurance as a contractor, service provider, or vendor is a form of asset protection, everyone hopes it is never needed but is glad to have it when it’s necessary.

However, unlike personal insurance policies, which have only a few common coverage types, vendor insurance coverage can vary significantly. This list of common business insurance requirements will give you an idea of what's available, so you can decide how to get general liability insurance to stay protected.

Learn more below about how vendor liability insurance can protect your business/

Why is Vendor Insurance Important?

The goal of all insurance is asset protection. The liability insurance policies you select, from medical coverage to liability issues, are intended to protect your company's assets strategically. In some cases, your personal assets are also at risk.

The type of coverage you purchase is based on the needs of your individual business. If you're looking for insurance certificates to show event organizers that your company is covered, they'll tell you what you need as an exhibitor or vendor. In these cases, short-term policies may suffice.

Liability Insurance for Small Business Owners

However, as a small business owner, you may want to consider purchasing liability insurance to protect yourself from costly lawsuit costs. The peace of mind that comes with knowing you've protected your business is well worth the investment.

Anyone who interacts with the public is vulnerable to a liability lawsuit. Those who serve food face a great liability risk. This includes food trucks and other food vendors, as well as other vendors such as bakeries and ice cream shops.

Artists and other vendors who sell handmade crafts, candles, jewelry, or other goods may also face a legal lawsuit. A table or booth may fall and injure a customer. Someone may sue you, claiming that one of your products caused them harm. A competitor may accuse you of stealing one of their designs.

Exhibitors at a conference, tradeshow, or other special event are also vulnerable to third-party injury or property damage. Fortunately, there are a variety of vendor risk insurance options available to help protect your business from liability lawsuits.

What Vendor Insurance Coverage Should You Consider?

Even if a venue does not require vendor insurance, it can be a wise investment for your business. Let's look at the different types of liability protection you might need for your business and what they cover.

Commercial General Liability Insurance

Purchasing a commercial general liability (CGL) policy will protect your company from costs incurred as a result of non-professional acts of negligence. CGL kicks in when your company causes property damage or a personal or advertising injury, whether through a service, product, daily operation, or employee.

The insurance company pays for medical and legal expenses, workers compensation, and punitive damages. Your business does not have to deal with the financial consequences until the costs reach the liability insurance policy limits of your coverage.

Professional Liability

General liability insurance covers the majority of what most businesses require. Professional liability, on the other hand, is essential in careers such as healthcare, law, and other fields where malpractice and negligence are common.

This coverage protects you from the consequences of mistakes you may make on the job. as a result, professional liability service should be obtained by suppliers who have professional designations or state licenses and provide their services.

Product Liability Insurance

As a business, you are responsible for any damage caused by your product or service. Product liability coverage—also referred to as vendor liability insurance—is a way to protect your business from financial harm if damage occurs.

Product liability is one of the most expensive types of personal injury lawsuits that occur each year. You should have product liability insurance unless you want to pay for the injured party's medical bills, legal expenses, and any compensation they are awarded yourself.

Let Stampede Insurance Help You Find the Best Vendor Insurance

Insurance is an important consideration that should not be overlooked. At the same time, insurance is a very complicated business. Before you begin looking for an insurance provider, make sure you understand your insurance coverage requirements to choose the right policy for you.

At Stampede Insurance Services, we’re dedicated to providing our clients with the best service and care possible. With over ten years of industry experience, Stampede Insurance has the specialized knowledge you require, as well as access to some of the best insurance companies in California.

We service clients across the country and are licensed in multiple states, and we’re proud to collaborate with our clients to provide dedicated service for their commercial insurance needs.To learn more on how to get general liability insurance, contact us at 888-306-7887 at Stampede Insurance Services today!

Share this article

Latest Blogs

Request A Quote
Located in Pasadena, California. We also serve the Anaheim, Long Beach, Los Angeles, Riverside, and San Bernardino areas.  
Licensed in Alabama, Arizona, California (#0H18184), Florida, Kansas, Kentucky, Louisiana, Mississippi, New Mexico, Nevada, Oklahoma and Texas
© 2024 Stampede Insurance Services. All Rights Reserved.   DMCA.com Protection Status