Craft insurance

Public liability insurance

In case someone gets injured or their property gets damaged as a result of your craft business.

What’s typically covered by public liability insurance for crafters?

Claims against your business for:

• injury to someone else, or damage to their property, caused by you while you’re working, or as a result of your craft work
• injury to someone else, or damage to their property, caused by your employee (remember, if you employ people, you’re required by law to have employers’ liability insurance)

For example:

• you’re exhibiting at a craft fair and an elderly customer trips over some boxes on the floor next to your craft stall, breaking their hip
• a customer suffers a dislocated shoulder when one of your decorative craft display stands falls on top of them
• you’ve sold a ceramic vase to someone at your craft stall, and as they’re unpacking it at home later that day, they slice their hand open on a sharp edge

Read more about public liability insurance

Employers’ liability insurance

In case something happens to an employee while they’re working for you.

What’s typically covered by employers’ liability insurance?

Claims against your business for:

• injury or illness experienced by your staff as a result of being employed by your craft business

**Employers’ liability insurance is required by law if you have people working for you. Without it, you could be fined up to £2,500 a day for each employee.**

For example:

• your employee trips over a patch of loose flooring at a craft fair and fractures his kneecap
• your employee accidentally cuts her finger with a metal knitting needle, and she accuses you of failing to provide appropriate safety training

Stock insurance

In case something happens to the craft products and materials you keep in stock.

What’s typically covered by stock insurance?

• loss, damage or theft of the materials you use to carry out your craft work
• loss, damage or theft of the craft items you’re planning to sell to customers, whether stored at your registered address or in your vehicle (but not at a craft stall)

For example:

• your finished craft products and craft materials (such as prototypes, fabric, paints, beads, pens, card) are stolen in a burglary at your business premises
• somebody breaks into your car while you’re at a trade fair and steals a box full of extra craft products you’re planning to sell

What you’ll need additional cover for

• your craft items while at your stall – most stock insurance policies for crafters won’t cover you for this due to to the challenge of ensuring minimum security conditions

Read more about stock insurance

Legal expenses insurance

In case your craft business is faced with legal costs.

What’s typically covered by legal expenses insurance?

• legal costs that crop up in the day-to-day running of your company
• the cost of legal claims relating to property damage, nuisance or trespass
• the cost of resolving disputes, whether to do with tax and compliance or your employees
• a tax advice helpline, a 24/7 confidential legal helpline, and crisis communications support to help you protect the reputation of your craft business

For example:

• you fired your trainee craftworker after discovering that they were stealing decorative fabrics from you, but they’re denying it and accusing you of unfair dismissal, so you need to defend your legal rights
• your craft company is being looked into by HMRC, and you (and any other directors) need help responding to HMRC’s enquiries

Read more about legal expenses insurance

Personal accident insurance

In case you or anyone you’ve covered has an accident.

What’s typically covered by personal accident insurance?

• injury or death at work or outside of work, for anyone covered on the policy
• lost income, medical costs and hospitalisation benefit

For example:

• you get your hand caught in your sewing machine, and the resulting injury means you can’t create any new craft items for two weeks
• your employee falls down the stairs in a clothing shop at the weekend and breaks their leg

Read more about personal accident insurance

Which type of workers do I need insurance for?

Employers’ liability insurance is a legal requirement if you employ people.

If you have people working for you, including bona fide subcontractors (BFSC), labour-only subcontractors (LOSC), part-timers, or full-time staff, employers’ liability insurance is required by law.

Read on for our simplified guide to the difference between labour-only subcontractors and bona fide subcontractors.

Does craft insurance cover my work correctly?

Make sure you’re picking the right cover to protect you properly. It’s important to know that if you have another trade or job, you’ll need additional cover. For example, do you need to consider online retailer insurance or art gallery insurance?

Do I need cover for other types of work?

If you provide other services, make sure you’re covered:

• Photography insurance
• Art dealer insurance
• Artist insurance
• Arts & crafts shop
• Market traders insurance
• Performers insurance
• Face painting insurance
• Private tutor insurance

Other types of insurance

• Limited company insurance
• Self-employed insurance
• Freelance insurance

Which public liability cover limit should I choose?

Think about the maximum possible loss your business could face in the event of a claim, and make sure you take legal fees and damages into consideration. You can choose from three levels of coverage – £1 million, £2 million, or up to £5 million.