Buying insurance is vital for your business
Now that you are in business and selling products you need to get yourself insured, particularly in this culture of suing.
Cover yourself
We live in an increasingly litigious society which means that, perhaps more than ever before, creative business owners need to consider purchasing business insurance.
This is really important if you are considering selling at craft fairs, shows, public events, open studios, workshops etc.
There are two main insurance types you should look at:
- Public Liability Insurance: covers you against claims made against you by a third party for accidental injury to people (including death), accidental loss or damage to other people’s property and, depending on the policy, may also cover legal fees, costs and expenses, hospital treatment claimed from you (check the small print!)
- Product Liability Insurance: 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.
Legally products must be “fit for purpose” so if you make or supply a faulty product which causes damage or injury to someone (this includes products which are given away and not just sold) you may be subject to a claim against you for compensation. This type of insurance, however, won’t necessarily cover you against financial losses to a business or person caused by a faulty product you made, supplied or repaired so check with your insurer.
How much do I need to insure for?
This is one of the most frequently asked questions and ultimately will come down to a personal judgment as to what is appropriate for your particular business but, generally speaking most insurance companies offer insurance between £2 million to £5 million as relatively standard.
If you shop around you will find an insurance company/broker that will give you a good package not just for your premises and goods but also to cover you if someone should hurt themselves, either at your craft stall or by your product.
Here are some places that you can start:
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