Cooking and baking has always been a much loved hobby for many. Whether it be experimenting with popular cuisines or reworking old ancestral dishes, budding culinary stars have made their passion into viable businesses.
If you run a home food business, no matter the size of your business, it is important you have the correct insurance in place as soon as possible.
Speak to our team to learn about what insurance you need for your home food business.
What is a home food business?
A home food business is a home-based food manufacturing business, with the intent of selling handmade food and/or drink goods to the public.
Like every other home-based business, home food businesses require a lot of research and planning before starting up.
Does a home food business include drinks?
Yes, home food businesses do often include drinks.
Similarly to producing food goods, you will need to be aware of the rules and regulations about producing drinks and selling them to the public.
What insurance do I need for my home food business?
You must have insurance if you are selling food goods. There is potentially a higher risk of harm to customers compared to other small businesses, such as card designs or wax melt makers, because your customers will be consuming the products.
Your insurance will be especially helpful if any of your customers suffer from food poisoning, find external, foreign items in their food such as plastic or card.
Here at CraftCover, we can provide craft insurance to suit your specific needs. These include:
- – Public liability insurance: This protects your business if a member of the public is harmed as a result of your products or services. Even if you don’t believe there has been a mistake, you may still have to defend yourself.Public liability will help you cover the legal expenses of the claim, as well as the cost of compensation.
- – Product liability insurance: This offers an extra layer of protection should anything go wrong within your business or if a customer complains about a specific product. Food preparation and manufacturing involves several stages, all of which may present a range of potential risks.Product liability covers you and your business against any legal claims of injury or damage, whether or not you are involved in the production, sale or delivery of a food product.More specialist cover can be bought, for example, to cover the cost of Product Recall if there is a known problem with a particular batch of your product, but you’ll need to speak to one of advisors separately about this as it’s not included under a standard liability policy.
When should I get insurance for my home food business?
Ideally, you should get insurance for your home food business before you even start selling or sharing your products with the public.
The last thing you want to happen when you’re just starting out is to be handed a heavy claim that you can’t afford to pay as you are uninsured.
Even if you believe your products are perfect, it’s not worth taking the risk of being uninsured and selling food or drink goods to the public.
Do I need insurance to make and sell food from home?
Yes, you should still be insured if you are making and selling food from your home.
If members of the public come to your place of work, being your home, or you visit their home, public liability is a key policy worth purchasing.
A customer who trips on a rug or table leg and injures themselves can just as easily make a claim as someone who gets food poisoning from a restaurant.
Home food businesses are product-based, which means it is a possibility that an item you sell may well cause an injury or illness to a customer.
It’s very easy to assume your products won’t cause any harm, but it’s not worth taking the risk of your food goods making a customer sick.
It doesn’t matter what role you play in the brand team, you could be held liable which is why it’s so important to be insured.
What kind of food and drink can I make and sell from home?
You can make and sell a wide range of food and drink goods, including:
- Cake Making
- Craft Wine
- Beers & Spirits (Sloe Gin etc)
- Chocolate Making
Do I need a licence to make and sell food from home?
If you want to sell food from your home, you will need to apply for a food and business registration through the UK government website.
The application is free, but you must do it at least 28 days prior to the date you are planning on starting to sell your food goods.
You can be imprisoned for up to two years if you are caught without a registration, so you must ensure you have one within plenty of time.
If you plan on running as a sole trader, you will need to register via the government website too. The same goes if you plan on having employees, however, you’ll need to register as a limited company instead. This costs £12, and is usually complete with 24 hours of application.
Our blog on how to sell crafts legally may help you with understanding your responsibilities as a crafter.
Home-based Food Business Insurance with CraftCover
At CraftCover, we can provide you with bespoke and custom home-based food business insurance to suit your specific business needs.
If you have any queries about insurance for your food business, speak to us today. We will take the time to fully understand your business and its specific needs.
Get your free quote today, or alternatively you can speak to one of our expert team members to discuss your home-based food policy.