Vendor Insurance Information
Are you new to vending at a farmers market? You’re not alone — and we’re here to help you navigate the details, including the topic of vendor insurance.
Is Insurance Required to Be a Vendor?
At this time, South Dakota does not require vendors to carry liability insurance to sell at a farmers market. However, the Sturgis Gathering Market does require each vendor to carry their own insurance. We are especially concerned if you’re selling food products, prepared foods, or handmade items.
Having your own policy:
- Helps protect you and your business from liability claims.
- Gives customers and organizers peace of mind.
Types of Insurance to Consider
For farmers market vendors, the most common types of coverage include:
- General liability insurance – Covers injuries or property damage that might occur at your booth.
- Product liability insurance – Especially important if you sell food or body care products.
- Farm or business insurance – May include liability coverage, crop loss, and more.
Where to Get Insurance
If you choose to purchase vendor insurance, here are some providers that offer plans tailored for small-scale vendors and market sellers:
- FLIP – Food Liability Insurance Program
- ACT Insurance – Artists, Crafters, & Tradesmen
- State Farm or Farm Bureau – Local agents can sometimes bundle coverage with farm or home policies.
Vendor Coverage Through Homeowners or Renters Insurance
✅ It’s possible: Some homeowners or renters policies offer an endorsement or rider that adds liability coverage for hobby businesses or part-time vendor activities.
⚠️ But it’s limited: These add-ons often have low coverage limits and may not cover all risks, especially if you’re selling:
- Prepared food or beverages
- Body care or consumable goods
- Anything that could be ingested or applied
❌ Most policies exclude regular business activity: If you’re operating as a business (even part-time), your homeowners’ insurance usually excludes that liability unless you’ve specifically added a business endorsement.
Additional Resources
Here are some additional resources about this topic:
- South Dakota Department of Health - Farmers Markets
- South Dakota State University’s Farmers Market Resource Manual
- South Dakota State University’s Farmers Market Regulations (e.g., vegetables, maple syrup, poultry, dairy, meats, labeling, etc.)