Insurance Info
WSFMA MARKET INSURANCE
WSFMA offers liability insurance coverage to its member markets and vendors
through a group policy program managed by our insurance broker. Liability
insurance, generally in the amount of $1 million, is required by almost all
property owners (including cities) where public events take place. The WSFMA
program covers each participating member market site with $5 million aggregate
limit, $1 million per occurance. For the market year 2007, new markets pay $400
for one year of coverage. Markets that purchased insurance through WSFMA in
2006 will pay $375. The annual renewal date is April 1st.
This information packet accompanies the application for membership will answer
most questions regarding this benefit of association membership. Topics covered
are:
- Policy coverage
- Additional insured
- Christmas markets and other events
- Application procedures
- Screening criteria and risk reduction
- Looking for the right agent for market owned property
- Claims procedures
Thank you.
POLICY COVERAGE
The WSFMA insurance program offers markets liability insurance only. It covers accidents, in which the market is negligent, which cause injury to customers, vendors or employees of the market or which cause damage to the property where the market is held or customers' property. In some cases vendors' property may also be included, and markets are covered with product liability ONLY for products sold or given away by the market itself. The policy DO NOT cover VENDOR PRODUCT LIABILITY, or BOARD LIABILITY. PRODUCT LIABILITY IS THE SOLE RESPONSIBILITY OF THE VENDOR SELLING THE PRODUCT. That is, in the event a customer of the market is injured by a product he/she has purchased at the market, it is the vendor who is considered liable, not the market. Vendor Product Liability coverage is not currently available through WSFMA.BOARD LIABILITY IS THE SOLE RESPONSIBILITY OF THE INDIVIDUAL MARKET ASSOCIATION. Markets, and their Board members, are encouraged to consult their local insurance agent, or their home owners insurance agent, to find out what coverage they might make available to them.
WSFMA's policy limits claims for each occurrence of an accident to $1 million for personal injury, $300,000 for any one fire and $5,000 for medical expenses for any one person.
MARKETS WHICH OWN THEIR OWN PROPERTY (BUILDINGS, SHELTERS, VEHICLES) MAY NEED MORE INSURANCE THAN THIS POLICY PROVIDES. The policy we offer is designed primarily to allow grassroots markets to function with a minimum of overhead. Markets which have property of their own will usually find it more convenient and cost effective to seek a policy that meets all of their needs from a local agent who specializes in business insurance or insurance for non- profits. (See "Looking for the Right Agent".)
Multi-functional businesses which include a Farmers Market (malls for example) may also find WSFMA liability coverage insufficient for their needs but may find that their existing business insurance policy covers market activity.
ADDITIONAL INSURED
Where markets are operating on property owned by another party, the owner of the property can be listed as an additional insured on the policy. All coverage which is applicable to the market is also applicable to the property owner during the period of time that the market is in operation. Coverage is extended to the property owner only in conjunction with the market's use of the property.WSFMA does not generally issue coverage statements to additional insureds. CERTIFICATES OF INSURANCE MAY BE ISSUED BY SPECIFIC REQUEST OF THE MARKET AT THE TIME OF APPLICATION, PROVIDED THAT ALL NECESSARY INFORMATION IS SUPPLIED IN THE SPACE PROVIDED ON THE APPLICATION. A CERTIFICATE CANNOT BE ISSUED WITHOUT IT. ALSO MARKETS SHOULD BE AWARE THAT CERTIFICATES ARE OFTEN UNAVAILABLE UNTIL AFTER FINAL PROCESSING AT THE INSURANCE COMPANY'S CENTRAL OFFICE. It is the responsibility of each market to satisfy the property owner's conditions of use and to notify the property owner of the market's coverage under the WSFMA program. The easiest way to accomplish this is to photocopy insurance information sent to your market by WSFMA and send it on to the property owner. Keep the originals for the market's records.
CHRISTMAS MARKETS AND OTHER SPECIAL MARKET EVENTS
Some seasonal markets plan special Christmas markets after the close of the regular market season. Market events which maintain the farmers market criteria and are held at the regular site are automatically covered by the policy, which is in effect throughout the year regardless of whether or not the market operates continuously.However, if your market holds an event which is other than a farmers market or is at another site, YOU MUST NOTIFY WSFMA OF A CHANGE IN ACTIVITY OR LOCATION AND ANY ADDITIONAL INSUREDS well in advance of the event. Each site carries a separate premium, which must be applied for, assessed for risk and registered with the agent before coverage is provided.
APPLICATION PROCEDURES
The WSFMA membership application/renewal includes a section which asks if your market wants insurance coverage through WSFMA. Each renewing market is sent an application packet at the beginning of each calendar year. New markets are also sent applications at that time if possible. These forms are due no later than March 1st. This allows time for WSFMA to screen for potential risk and have markets put policies and practices in place for the coming season that minimize the possibility of a claim (which could increase future premiums to all markets). The policy anniversary date is April 1.Market associations which operate at more than one site must pay separate dues and premiums for each site that is insured.
Dues and premium payments are due with the application on March 1st. However, we are aware that new and very small markets may have small budgets, and we are willing to make payment arrangements with them. We encourage each market to budget for all market expenses and adjust your fees during the current year to provide a carryover -- most market expenses, like most farming expenses, come at the beginning of the year when money is shortest. So set some aside while cash flow is good.
WSFMA will send you verification that you are insured. Don't be alarmed if there is a lag -- it takes WSFMA time to gather all market requests, and submit the list of market sites with all the accurate information to our insurance agent. Then we wait for confirmation, and prepare the information to send back to you. Markets which miss the deadline will have their coverage, and thus possibly their ability to open for the season, delayed, so please help yourself by responding to WSFMA information requests promptly.
SCREENING CRITERIA AND RISK REDUCTION
For more than two decades farmers markets in Washington State have demonstrated consistently that they are "good risks" -- there have been few accidents, and almost no insurance claims, by members of WSFMA. Keeping the cost of liability insurance low for markets, in fact, hinges on our ability to maintain low risk in markets in spite of rapid growth in many. It's worth noting that the best market insurance there is may be satisfied customers. Vendors who look out for the interest of their customers will automatically help prevent accidents and will seldom encounter conflicts with them.Here the guidelines and tips which have helped to reduce the risk of accidents at markets in spite of the presence of lots of people:
1: Submit Articles of Incorporation/By-Laws or Policy Handbook/Market Rules. Tip: WSFMA reviews these periodically for appropriate level of infrastructure and management that would monitor safety in the marketplace.
2: Must have been formed for at least six months. Tip: Stable, established markets are better risks.
3: Must meet WSFMA criteria for a farmers market (see WSFMA Member Guidelines). Tip: Non-agricultural products give the image of something other than a farmers market, disappointing customers and reducing revenue. WSFMA is an agriculturally based organization and supports farmers and their enterprises.
4: All vendors must have proper licensing. Tip: Read "Regulations for Farmers Markets" to determine who needs licensing (such as food handlers permit, resale license, certified kitchen, livestock/egg inspection, business license, etc.). Business activities are regulated because of consumer risk and a need for vendor accountability.
5: Provide description of and compliance with local ordinances that directly affect the safety of the marketplace.
Tip A: Keep vehicles, bicycles and unleashed dogs out of the marketplace.
Tip B: Define traffic patterns around the market clearly with signs and barriers and provide adequate parking.
Tip C: Keep a fire lane clear through the market and make sure all vendors are versed on procedures in case of fire or medical emergency. Keep a first aid kit and emergency numbers handy.
Tip D: Encourage vendors to check the front of their stalls for dropped food or paper and remove any debris.
Tip E: Study Canopy 101.
6: No form of discrimination allowed (racial, sexual, cultural, religious, etc.) Tip: Though few people in this day and age would consciously or overtly discriminate, some people who have experienced discrimination are sensitive and may overreact to seemingly harmless comments. Think before you speak: a little tact goes a long way.
7: Draw a diagram of the market site and submit with the application. Detail any areas of the marketplace that affect safety. Tip A: Show traffic flow, fire lanes, trash receptacles, bathrooms and water fountains, lighting, vendor booths. Tip B: Restrict access to potentially hazardous areas like equipment sheds, areas under construction, or machinery in operation by locking or boarding them up. Tip C: Post signs warning the public about hazards such as uneven steps, low-hanging objects, and play areas which are permanent fixtures. Keep market products and other movable objects out of walk areas.
LOOKING FOR THE RIGHT AGENT FOR MARKET OWNED PROPERTY
If your market has property and you need to find a local agent to work through, you'll need to do a little digging for find the right agent to provide you with good insurance coverage and good service at a price you can afford. Insurance companies tend to specialize in different areas of coverage -- not all can or will carry business insurance, and fewer still cover non-profit organizations. some will quote you outrageous premium prices and others will make you wonder how they can offer so much for so little.In Washington State, farmers markets have had one thing going for them: they have proven themselves to be good insurance risks since the late 1970's. Their crowds are orderly, they have few, if any, adversaries, and their claims are far smaller than the premiums they pay. It is important to let agents know this when negotiating for market insurance.
Check with your personal insurance agent to see if he/she works with companies who can provide your insurance needs or ask him/her for a referral to another agent that can help you. Inquiries to similar non-profits may provide good leads to agents who are familiar with your kind of needs and are eager to serve them. Those who are used to your kind of policy and who really want to carry you will please you with a truly affordable offer.
Getting good service from the insurance business hinges on finding an agent who values personal relationships in business-someone who understands and is enthusiastic about the goals of farmers markets; someone who has a good working relationship with their contacts at the insuring company.
It will be up to you to educate each agent about farmers markets. Some may be only vaguely aware one exists in their community. You'll want to take the time to explain the nature and goals of your market carefully to each agent you seek bids from so they understand how you differ from a roadside stand, what you have to offer the community and why your event is a better risk than most.
Seeking competitive bids puts you in the power seat as far as insurance negotiations go, Let agents know you're talking to others, and if they ask for a chance to outbid other agents, certainly give them the opportunity. But when you finally choose an agent, take into account all factors, not just price. Clients have been canceled by insurance companies fro the sole reason that the company doesn't want to work with the agent. Ask yourself. Can I expect good service?
(Has he/she returned my calls promptly? done what they said they'd do?) Is the office convenient for us? Can we pay quarterly if we need to? Do others know and respect this agent or have others been canceled with him/her through no fault of their own? Does he/she carry lots of other organizations similar to ours? Is he/she willing to educate vendors about reducing risk by talking to the group at a meeting or by checking insurance information handouts for accuracy? Do we LIKE him/her?
We don't have to love everyone we work with, but it does help get the job done when we get along with them.
CLAIMS PROCEDURES
If an accident occurs at your market which you believe is covered by our
liability insurance, collect all relevant information at the time of the
accident:
1. Date, time and location of the accident
2. Names, addresses and phone numbers of all persons involved
3. Names, addresses and phone numbers of any owners of damaged property
4. Short description of what happened and copies of any photos taken
Call WSFMA as soon as possible:
Jackie Aitchinson, Executive Director at jackie50@comcast.net
, or (206) 706-5198.
DO NOT ATTEMPT TO CONTACT THE INSURANCE AGENT DIRECTLY. The policy is in
WSFMA's name and ALL CLAIMS MUST BE SUBMITTED THROUGH WSFMA. A claims adjuster
from the insurance company will contact your market in the days following to
verify details of the claim.
Download the Safeco Commercial Liability
Insurance Policy [pdf 405 KB]
Download the Conover Claim Report [pdf 94 KB]
Please direct any questions regarding the insurance to Jackie Aitchison, Administrative Director at info@wafarmersmarkets.com or by phone at (206) 708-5198 (answering service) or her cell at (360) 649-0274. Or by mail to: PO Box 445 Suquamish, Washington 98392.
