Insurance for Crafterssubmitted on 13 March 2014
You may be quite happily designing and making your items and selling them at craft fairs etc. and have never given a thought to insurance, but it is a subject that you shouldn't ignore. As with all insurance, you hope you will never need it, but it's not worth the risk of not having it. Fortunately getting insurance for your craft business is a relatively straightforward and inexpensive business.
If you are selling at craft fairs and other events you should certainly have Public Liability insurance, and most organisers will insist on you having it. This covers you in case a claim is made against you by a third party for accidental injury or death, or accidental loss or damage to other people’s property, while you are selling at the fair. You can be insured for between £1 million to £5 million, though some event organisers stipulate a minimum of £5million.
The other insurance you would be advised to have is Products Liability. This is important for all sellers. Products Liability covers you in the event that you are held liable for damage or injury arising from defects in your product, design or manufacture, even if you have not been negligent. This is essential for people who sell toys, decorations, jewellery etc. – basically anything that includes small parts - due to the risk of children getting hold of them.
Most basic packages will give you both Public Liability and Products Liability Insurance.
Other types of insurance you may want to consider are:-
Property Insurance: this includes your stock and materials against loss by fire, malicious damage, theft and others. If you are working from home you may already be covered by your Home Insurance policy.
Saleable Stock Insurance: this covers your stock while you have it with you at an event or in transit.
Business Interruption Insurance: this will cover loss of earnings from time spent replenishing your stock after a loss through theft, fire, etc. This is essential if your main source of income is crafting.
Most insurers will offer a combination of these, or all of them individually, on their more advanced insurance packages.
There are lots of insurance providers out there, but a few firms are popular with the crafting community. G M Imber & Sons (gmimberltd.com) offers a basic Craftinsure Starter package and a slightly more expensive business package. Craftinsurance.co.uk, the Combined Market Traders Insurance Association (cmtia.co.uk) and Direct Line (directlinefor business.co.uk) are other insurers to consider.
When arranging your policy, tell your insurer exactly what you do, and make it clear that you will be attending indoor and outdoor events. When your policy arrives read it carefully to ensure that it covers your needs, and if something is missing then get your policy changed right away.
If you are not yet insured, then don't leave it any longer. It will be a small price to pay for your peace of mind.
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