How to Start (or Save) a Vendor Market: Lessons from the Corvallis Makers Market
Part 2: Permits, Insurance, and City Requirements
What You Actually Need to Start a Vendor Market
Starting a vendor market isn't just about tents and tables — it starts with paperwork.
When Jody stepped in to restart our market, the very first thing she did was head to the City of Corvallis permit office when it opened on Monday morning. That quick, decisive move is one of the biggest reasons we never missed a market day.
Here's what she learned — and what anyone considering starting a market needs to know.
What Permits Are Required to Run a Market?
For our market, the primary permit required is a Right-of-Way permit through the city. This permit allows the market to temporarily close a street for vendor booths and pedestrian traffic.
Because our market had been in existence for 15 years or so, and is adjacent to the long-standing Corvallis Farmers Market, it wasn't considered a new event. Instead, it was viewed as a continuation of an existing market footprint — which made the process smoother.
Key takeaway:
Permits vary widely by city. Some municipalities require event permits, street closure permits, special use permits, or multiple approvals from different departments. Always start with your local city or town office.
How Do You Figure Out What Your City Requires?
Jody had already done research in person and online through the city's website and had decades of experience as both a vendor and organizer. But her advice is simple and universal:
"Go directly to your municipality and ask." - Jody E.
You will specifically want to ask about:
- Street closure or event permits
- Insurance requirements
- Business registration
- Fire or safety regulations
- Signage requirements
- Noise or vendor restrictions
City websites often have this information posted, but speaking with an actual person can save you weeks of confusion.
Insurance Requirements: Market vs. Vendor
Insurance is one of the most important — and often misunderstood — parts of running a market. Here's how it works for our market:
- The market manager (Jody) is required by the city to carry liability insurance for the market as a whole
- Every vendor is required to carry their own liability insurance
- Vendors must provide a certificate of insurance — no exceptions
This protects everyone in situations involving:
- Customer injuries
- Product-related issues
- Flying canopies
- Accidents between vendors
Jody personally carries two separate policies — one for her personal business (Northwest Stone Chaser), and one for the Corvallis Makers Market. In addition, the City required Jody to register her CMM business with the state. This step is critical if:
- Collecting vendor fees
- Signing contracts
- Working with municipalities
What This Means for Anyone Starting a Market
Permits and insurance aren't optional — and they're not something you want to "figure out later."
Before you announce a market, recruit vendors, or order signage, you need to:
- Contact your city or municipality
- Confirm permit requirements
- Register your market business if required
- Secure insurance
It may feel overwhelming at first, but once this foundation is in place, everything else becomes much easier to manage.
In the next post, we'll talk about choosing the right location, working alongside existing markets, and why foot traffic matters more than you think.
Here are the other articles from this series:
Part 1 - What happened when our market was canceled
Part 3 - Choosing the right location
Part 4 - Market layout, vendors & rules
Part 5 - Cost, fees, and the reality of running a market
Part 6 - Vendors, communication, and staying organized