I rented a booth at a reputable shop. The owner said, “Don’t worry, the shop is insured.” One of my clients slipped on water I spilled near my station and broke her ankle. She sued the shop and me. The shop’s insurance carrier sent me a letter: “We defend the Shop Owner. You are an independent contractor and not an Insured. You are on your own.”
Key Takeaways
- You Are a Separate Business: If you are a 1099 Booth Renter, you are a separate legal entity from the shop. The shop’s insurance protects them, not you.
- The “Additional Insured” Myth: Even if the shop lists you as an “Additional Insured,” that usually only protects the shop from your mistakes. It doesn’t pay your defense lawyer if you are sued directly.
- Lease Requirements: Most booth rental agreements legally require you to carry your own Professional and General Liability. If you don’t, you are in breach of contract.
- Portability: Your own policy follows you. If you guest spot or move shops, you stay covered. Shop policies don’t travel.
The “Why” (The Trap): The “Named Insured”
Insurance contracts are specific.
- Named Insured: The Shop Owner (LLC).
- Insureds: Employees (W-2).
- NOT Insured: Independent Contractors (1099).
Unless the shop owner pays extra to specifically add you by name as a “Named Insured” (rare, because it costs money and increases their risk), you are a legal stranger to the policy.
The Investigation: “I Called Them”
I compared the cost of being safe vs. sorry.
1. Relying on Shop Insurance
- Cost: $0.
- Risk: 100%. If sued, you pay $10,000+ retainer for a lawyer.
- Scenario: Shop owner’s insurer sues you (Subrogation) to recover what they paid out for your negligence.
2. Buying Your Own Policy (PPIB/Marine)
- Cost: ~$650/year.
- Coverage: $1 Million Liability + Professional Liability.
- Benefit: You have your own lawyer. You are covered at conventions and guest spots.
Comparison Table: Renter vs. Shop Coverage
| Who is Sued? | Shop Policy Covers | Your Policy Covers |
| You (The Artist) | No (Usually) | Yes |
| The Shop Owner | Yes | No |
| Both | Only the Shop | Only You |
Step-by-Step Action Plan
- Read Your Contract: Check your Booth Rental Agreement. It almost certainly says “Artist must maintain liability insurance.”
- Buy a Policy Today: It takes 10 minutes online. PPIB, Marine Agency, or specialized brokers.
- Name the Shop as “Additional Insured”: This makes the shop owner happy and fulfills your lease requirement. It costs nothing to add them.
- Save the COI: Keep your Certificate of Insurance on your phone. You need it for every convention you work.
FAQ
Q: Can I share a policy with another renter?
A: No. Policies are per individual/entity.
Q: Does my policy cover my equipment?
A: Liability packages usually have an option to add “Business Personal Property” (
5k−5k−
10k) for your machine and inks. Add it.
[IMAGE: Diagram showing “Shop Policy Umbrella” covering the owner and employees, with the “Booth Renter” standing outside in the rain.]