Attending shows, festivals, markets, fairs, and other events throughout the year to sell your work means exposing your business to liabilities multiple times a year. As an artist, crafter, or tradesmen, you need to have the necessary coverage in place to protect against third-party liability claims that may come your way.
At ACT, we’re well-versed in the most common claims that occur at art events and want to talk about those along with something you’ll likely need to do to extend a layer of protection to your show promoter--listing an additional insured (AI).
WHAT IS AN ADDITIONAL INSURED?
In an insurance policy, an additional insured is anyone other than the policyholder who is covered by the insurance policy. Coverage may be limited to a single event or it could last for the policy's lifetime. Who you list as an additional insured on your art fair insurance policy will depend on whether or not the event promoter requires you to list them. By listing them as an AI, you extend your policy’s coverage to them in the case of a liability claim.
WHY DO I NEED TO LIST AN AI?
The main reason you’d be asked to list an additional insured on your art festival insurance policy would be to meet contract requirements. Event hosts and promoters often require their vendors to be insured because it ensures protection for their vendors and gives them peace of mind to continue running the show. In a lawsuit, the claimant will sometimes try to reach into deeper pockets by naming everyone they can think as being at fault. By listing an additional insured, the listed entity is also covered by your policy.
When an accident occurs that results in property damage or bodily injury, there is always room for a lawsuit. Check out some of our recent claims to get an idea of how things could affect you and your AI:
- During an art show, an insured had high winds pick up their tent and hit and scratch a trailer. The trailer owner decided to sue the tent renter and the event promoter to pay for the damage.
- Another insured’s tent blew over into a neighboring tent causing thousands of dollars in damage to their product. They list you and the event host as liable for the damage.
- An insured’s inventory tipped over and caused damage to a passing truck during their art fair setup. The truck owner sues you, the neighboring tents and your additional insured to pay for damages.
Without having your event promoter or host listed an additional insured, you leave them open to risk. The same goes for promoters who don’t require insured vendors—they leave themselves open risk. With art fair insurance, you and your additional insured could be protected against similar claims and not have to worry about paying for your legal fees on your own.
HOW MANY ADDITIONAL INSUREDS CAN I LIST?
ACT allows unlimited additional insureds on your policy. This means that if you travel from one market to another where the event promoters require you list them as an AI, then you can add each additional insured as needed.
DOES IT COST TO LIST ADDITIONAL INSUREDS?
No. You only need to pay for your policy premium. ACT currently offers an event-based policy for 1-90 days of consecutive coverage and an annual policy for those looking for more long-term coverage. Additional insureds do not cost extra.
Comments