I would like to know if the law requires a consignment store to carry Insurance on the property of other peoples things that you are selling for them?

The law probably does not require insurance, but it would be a good idea to have coverage anyway.

You under the law can be liable for their belongings in several ways, You can have them sign away some of those but if there is some negect on your part most courts will hold you liabe.

So would you rather have insurance or just write them a check.