Covers customer injury and property damage claims. Often required by landlords and clients.

Covers claims that your business caused bodily injury or property damage to a third party. A customer slips in your store, your employee damages a client's property, a product you sell injures someone — general liability pays your legal defense and settlements. Required by most commercial landlords before lease signing and by most commercial clients before issuing a contract.

Typical cost: $500–$2,000/year for retail and service businesses. $1,000–$4,000/year for trades and contractors (higher limits required).

Covers your business's physical assets — equipment, inventory, fixtures, and furnishings — against fire, theft, water damage, and other covered perils. Critical for any business with significant physical assets. Your landlord's property insurance covers the building structure but not what's inside your space.

Typical cost: $500–$2,500/year depending on the value of contents. Usually most affordable when bundled in a BOP (a Business Owner’s Policy).

Covers vehicles used for work. Personal auto policies don't cover commercial use — a critical gap for trades.

Covers vehicles used for business purposes — driving to job sites, hauling equipment, making deliveries. Personal auto insurance policies almost universally exclude commercial use. A single work-related accident without commercial auto coverage can result in a fully uninsured claim.

Typical cost: $1,200–$3,600/year per vehicle for a trades or service business. Varies by vehicle type, use, and driving history.

Covers theft or damage to your tools and equipment at job sites, in vehicles, or in storage. For trades businesses where tools represent a significant capital investment, this is essential coverage. Often available as an add-on to your general liability or commercial auto policy.

Typical cost: $200–$800/year depending on the value of your tools and equipment. Usually very affordable relative to the replacement cost it covers.

Covers medical costs and lost wages for employees injured on the job. Required by law in most states the moment you have any employee — including part-time. Trades and outdoor businesses have elevated injury risk; operating without workers' comp exposes you to full personal liability for any employee injury.

Typical cost: $0.75–$5.00 per $100 of payroll. Higher for physically demanding outdoor trades, lower for office-based work.

Covers claims that a product you sold or manufactured caused injury or damage. Critical for food vendors (contamination, allergen reactions), makers of body products (skin reactions), and any retailer selling physical goods. Often included in general liability policies but verify your policy explicitly covers product liability.

Often included in GL or BOP. As a standalone for food vendors: $300–$800/year through specialty insurers like FLIP.

• BOP (Business Owner Policy)

  Best starting point — bundles GL and property. Required by your landlord before lease signing.

• Business interruption insurance

  Often included in BOP. Pays lost revenue if fire, flood, or vandalism forces temporary closure. Critical when you have rent and payroll regardless of whether you're open.

• Workers' compensation

  Required once you have any employee — even part-time. Customer-facing retail has real physical injury risk.

• BOP with product liability

  Verify your BOP includes product liability — food businesses have elevated risk from contamination, allergens, and illness claims.

• Liquor liability (if you serve alcohol)

  Separate from general liability — covers incidents related to alcohol served at your establishment. Often required by your liquor license.

• Business interruption

  Especially important — a health department closure or equipment failure can shut a food business for weeks. This coverage pays your fixed costs during that time.

• Workers' compensation

  Required with any staff. Kitchen environments have higher injury rates than most workplaces.

• General liability with product liability

  Most market managers require proof of GL (typically $1M minimum) as a condition of vending. Product liability is critical for food, body products, and anything consumable.

• Commercial property (optional but recommended)

  Covers your tent, display fixtures, and inventory at markets. Standard homeowner's and renter's insurance typically excludes commercial inventory.

Affordable options for vendors

Specialty insurers like FLIP (Food Liability Insurance Program) and Markel offer affordable policies designed specifically for farmers market and event vendors — often $25–$50/month for solid coverage. Worth checking before going through a general broker.

• General liability — higher limits

  Trades need $1M–$2M minimum per occurrence. Many commercial clients require $2M. Your state contractor's license may specify minimum limits.

• Commercial auto

  Non-negotiable if you use any vehicle for work. Personal auto won't cover a work-related accident — and a serious accident without commercial coverage can be catastrophic.

• Tools and equipment coverage

  Your tools are your business. Covers theft from vehicles and job sites, and accidental damage. Often affordable to add to your GL policy.

• Workers' compensation

  Required in virtually every state once you have any employee. Outdoor trades have some of the highest on-the-job injury rates. Operating without it is both illegal and financially dangerous.

• Umbrella policy (as you grow)

  Provides excess liability coverage above your primary policies. Recommended once you're regularly taking on larger commercial projects or have multiple crew members on job sites.

Surety bond vs insurance

A surety bond protects your clients if you fail to complete contracted work — it's different from insurance, which protects you. Many state contractor licenses require both. They're not interchangeable — you need both.