If anyone works in your craft business, whether they’re paid or unpaid, full-time or part-time, a helper or a volunteer, employers’ liability insurance is a legal requirement. Here’s what you need to know.
Many crafters are surprised to find that employers’ liability cover applies to them. It’s not just for businesses with a payroll. The legal definition of ‘employee’ includes volunteers helping on your stall, assistants at a workshop, work experience students, temporary helpers and self-employed contractors working for you. If any of those people were to suffer an injury or illness as a result of what they do for you, they could make a claim against your business and without the right cover in place, the cost would fall on you.
Employers’ liability insurance covers your craft business if an employee, volunteer, assistant, helper, temporary worker or self-employed contractor makes a claim against you for injury or illness arising from their work with you. It covers your legal defence costs and any compensation awarded.
It is a legal requirement in the UK for most businesses that have employees. Failure to hold the required cover can result in significant fines, and you are also legally required to display or make available your certificate of employers’ liability insurance.
For the purposes of this cover, the term ‘employee’ includes anyone working under your supervision, direction or control, paid or unpaid, full-time or part-time. This includes:
✓ Permanent employees
✓ Part-time staff
✓ Casual and temporary workers
✓ Self-employed contractors working under your direction
✓ Volunteers and helpers
✓ Work experience students
✓ £10,000,000 protection as standard, double the legal minimum of £5,000,000
✓ Legal defence costs and compensation covered for illness and injury claims
✓ Zero excess on employers’ liability claims
✓ Price based on the number of employees and volunteers you have
✓ Available as an add-on to your public and product liability base policy
It’s an add-on, not a separate policy.
Employers’ liability cover is added directly to your existing public and product liability policy. There’s no need to arrange a separate policy or go through a separate application. Just tick the box when you get your quote.
Employers’ and public liability often go together.
Many crafters with employees need both employers liability insurance and public liability insurance, one to protect the public, one to protect your team. Both are available from Craft Insurance and can be combined in a single policy with no admin fees for changes.
Your certificate is issued immediately.
Once you’ve paid, your certificate of employers’ liability insurance is emailed to you straight away. You’re legally required to make it available to employees, and with 24/7 online access to your documents, that’s always straightforward.
If you have any questions about the Craft Insurance Policy, you may be able to find your answer in the frequently asked questions below…
Sole trader insurance requirements depend on whether you work alone or have anyone working with you. If you are a sole trader with no staff, volunteers or helpers, you do not need employers’ liability cover. But if anyone, even a casual helper or unpaid volunteer, works under your supervision, the legal requirement applies. It’s always worth checking if you’re unsure, and our team can help you work out whether you need it.
Limited companies that have employees, or that have more than one director, require compulsory employers’ liability cover, including family businesses and husband-and-wife companies. Craft clubs with volunteers are also covered under this policy, making it straightforward to protect your club alongside your public and employers’ liability obligations.
Employers liability insurance and public liability insurance serve different purposes and coverdifferent people. Public liability insurance covers claims made by members of the public or customers, for example, if someone is injured at your craft stall or claims a product you sold caused them harm. Employers’ liability insurance covers claims made by people who work for you, employees, volunteers, helpers and contractors.
Most craft businesses that have any kind of help or support will need both. At Craft Insurance, employers and public liability are available together in a single policy. You add employers’ liability as an optional extra to your base public and product liability cover, with no separate application and no admin fees for changes.
A certificate of employers’ liability insurance is the official document proving that your business holds the legally required cover and UK law requires that you make this certificate available to your employees. Historically, this meant displaying it physically in the workplace, but the rules now allow it to be made available electronically.
When you take out or renew your Craft Insurance policy, your certificate of employers’ liability insurance is issued instantly and emailed to you with your other policy documents. You can access it at any time through your online account, making it easy to share with employees or present if requested during a compliance check.
Buy online in minutes and have your documents in your inbox straight away. Your policy covers you from the moment you pay — so if you have a craft fair coming up, there’s no reason to wait.
Not sure which level of cover you need, or want to talk through your situation first? Give us a call. You’ll always speak to a real person who knows craft insurance inside out.
