Coverage Tips for Event Booth Vendors - NYCM Insurance Blog

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May 17, 2023

Coverage Tips for Event Booth Vendors

What Is Blanket Additional Insured Endorsement Language and Why Is It Important?


There is nothing like the feeling of pride that comes after a long and successful weekend of selling goods at a market or event. As a small business owner, it can be a truly gratifying experience to see all of your hard work pay off at an event or festival where you can reach a whole new market of people and showcase your products. But whether you are a baker, an artist, a farmer, a jeweler, a seamstress, or any kind of small business owner selling goods from a booth, you will want to protect your business against the risks associated with attending shows in a cost-effective way.


Renting a booth at events brings about unique risks because of the potentially vast number of third-parties and locations that require coverage. Without the right kind of wording in your Business Owners Policy (BOP), you could be underinsured or forced to pay extra to extend your coverage to each event you work. Some insurance companies offer what is known as blanket additional insured endorsements, which can extend liability coverage to multiple third-parties without having to pay extra. Continue reading to learn about blanket additional insured endorsements and whether this language can save your small business money!


What Is Blanket Additional Insured Coverage?


Blanket additional insured coverage is wording in a Business Owners Policy offered by some companies that allows the extension of liability coverage to a third-party, who is requiring liability coverage because of a written contract in place. The word ‘blanket’ refers to the extension of liability coverage to all additional insureds who contractually require it—without having to pay extra for each third-party to whom liability coverage is extended. 


Why Is This Language Important?


Having blanket additional insured endorsement wording in your coverage can make all the difference if your small business is operating a booth out of multiple locations that all require liability insurance.


Here’s an example: Joe has a small farm and sells his fruits and vegetables at a local farmers market every week. The organizer of the farmers market requires a written contract with Joe for the booth space he rents. The contract also requires Joe to list the farmers market as an additional insured under the liability section of Joe’s Business Owners Policy. If Joe has blanket additional insured coverage, Joe’s insurance agent could issue a certificate of insurance listing the farmers market as an additional insured under Joe’s liability insurance at no charge. If Joe did not have blanket additional insured coverage, he may have to pay an additional amount each time he needs to add an additional insured.     


Liability coverage is invaluable for a business owner if a patron brings a lawsuit against the business. Because blanket additional insured coverage can automatically extend coverage to event organizers making them additional insureds (if there is a written contract requiring them to do so), the business owner or the event organizer could file a claim to the business owners insurance carrier rather than incurring all expenses out-of-pocket.


Do I Have This Coverage Now?


Blanket additional insured coverage is offered by some insurers at no additional cost as part of their Business Owners Policy. Some carriers offer this coverage for an additional charge, and other carriers do not offer this coverage at all. If you are a business owner who operates out of a booth at events, it is a good idea to contact your agent to discuss whether this language is in your policy already, or even available for purchase.


Operating a business is no small feat and we know how important it is to support our small businesses any way we can. Contact an agent today to discuss our Compass BOP and whether a blanket additional insured coverage could save your business money!