Business Advice

Does a Small Craft Business Still Need Insurance?

Crafting has become a big business opportunity in the UK, and more and more people are starting to make money from their crafting skills. However, many are still unsure when they should start looking at craft insurance.

Even if you’re just starting out, and you don’t see yourself as a big business, you are still just as open to legal action as any big company. This is where our specific craft insurance can help to cover you and your business.

Is craft insurance only for large businesses?

Many crafters starting a new business may think that craft insurance is only for larger craft businesses, however, this is not true. No matter the size of your business, it’s vital that you have the right craft insurance in place to protect your business in case a claim is made against you.

Craft insurance covers your legal fees, injuries, damage to property and even loss of stock if you are sued by a member of the public in relation to your craft business.

Craft insurance types for small businesses

There are two main types of insurance you will need as a craft business holder. These are Public Liability Insurance and Product Liability Insurance.

Product Liability Insurance

Product Liability Insurance covers the goods you make, supply and sell. It also covers unforeseeable circumstances that your quality systems could not identify.

This cover automatically includes associated legal costs, such as:

  • Solicitors fees
  • Legal and litigation
  • Damages awarded
  • Claimant costs

At CraftCover, we can include both types of cover into one comprehensive policy, bespoke to your industry. We cover a wide range of crafts, many of which are not covered by other providers. All you need to do is let us know what your craft is and we’ll let you know if we can arrange the cover for you.

How much does my craft business have to sell in order for me to need insurance?

Generally speaking, there is no specific amount your craft business has to sell in order to need craft insurance.

In many cases, we always suggest ensuring your business before you even start selling your craft products, as this will prevent the risks of any potential claims being made when you don’t have the correct level of insurance in place

Do you need insurance to run a craft stand at a craft fair?

More often than not, craft fair organisers will request to see proof of your Public and Product liability insurance policies before you can start selling at their events.

At CraftCover, we can provide craft fair insurance automatically, as well as any additional cover options should you need them. Some extras include:

  • Stock and equipment cover
  • Cover for your goods and equipment
  • Loss of money up to £1000

Note: We only allow these additional cover options for our annual policies, not for our short term, 3 day policies.

What are the risks involved in running a small craft business uninsured?

Without the right level of insurance, your business may face extensive costs due to potential accidents and issues. This amount could be a lot higher than what you can afford. We can help you to cover these significant costs as part of your craft insurance policy.

One lawsuit could mean the end of your business, and this is especially true if you don’t have the personal assets to cover the damages or medical costs. There are a huge number of risks that small businesses without insurance could be open to, which is why we’re here to help.

If you’re thinking of starting a new craft business and you’re looking for comprehensive craft insurance, our policies at CraftCover can help. You can get in touch with our team or get a free quote today to see how much cover may cost you.