Me and two friends rented a storefront for a weekend “Sneaker Pop-Up.” We filled it with $200k in inventory. On Saturday, a rack collapsed, hitting a customer in the head. On Sunday, someone snatched a $5,000 pair off a table. The landlord’s insurance covered the building, but who covers the lawsuit and the theft?
Key Takeaways
- Special Event Insurance: You need a short-term “Special Event” policy (like wedding insurance, but for retail). It covers General Liability (slips/falls) for 1-3 days.
- Inland Marine / Property Floater: Event liability covers injuries, not your shoes. To cover the shoes while at the venue, you need an “Inland Marine” floater or “Off-Premises” coverage.
- The Landlord Requirement: Most venues require you to list them as “Additional Insured.” If you don’t have this paper, they won’t give you the keys.
- Cash Handling: If you get robbed of the cash box, standard policies barely cover $200 of cash.
The “Why” (The Trap): Care, Custody, and Control
The venue owner is not responsible for your business operations.
If a kid trips on your shoebox, you are liable.
If you don’t have insurance, the lawyer will sue you personally and take your personal collection to pay the damages.
The Investigation (Quotes for a 2-Day Event)
I quoted a weekend pop-up in Los Angeles.
1. Thimble (On-Demand Insurance)
- Pros: You can buy it by the hour or day via app.
- Coverage: $1M General Liability.
- Cost: ~$80 for the weekend.
- Verdict: Essential for the liability/lawsuit risk.
2. EventHelper
- Pros: Specialized in one-off events. Easy to add “Additional Insured” certificates for the landlord.
- Cost: ~$100.
3. Property Coverage (The Shoes)
- The Hard Part: Thimble/EventHelper usually don’t cover the theft of the shoes, only the injury to people.
- Solution: You must call your existing Business/Collector insurer and ask for a “Location Extension” for the pop-up dates.
Step-by-Step Action Plan
- Buy Liability First: Download Thimble or visit TheEventHelper.com. Get $1M liability coverage.
- Secure the Merch: Hire a security guard ($30/hr). Insurance often requires it for high-value retail events.
- The “Hold Harmless” Sign: Post a sign: “Not Responsible for Lost/Stolen Items.” It’s not legally bulletproof, but it deters scammers.
- Cash Management: Do not keep cash on site. Use Square/Shopify POS. If you must take cash, do “drops” to a safe or bank every 2 hours.
FAQ
Q: We are serving free drinks. Do we need Liquor Liability?
A: YES. If you give a beer to a minor or someone who drives and crashes, you are liable. Host Liquor Liability is a specific add-on.
[IMAGE: A “Certificate of Liability Insurance” (COI) document with the “Additional Insured” box checked.]