From Fun To Future – Insurance 101 For New Crafters

Many of us dream of being able to weave our passion, skills and knowledge into an income-generating enterprise. We spend so many hours at work each week; why would we not want to be doing something we enjoy? Unfortunately, life is not a fairytale, and for the majority of us, work pays the bills and enables us to enjoy life once we leave our workplace. For others, paid employment is arduous but does have a real sense of fulfilment alongside it. But what if you are in the position to be thinking of taking a leap out of your regular day job and dipping your toe into the adventure of starting your very own craft business? This could initially be alongside your regular employment, and you are dreaming of turning your crafting expertise from a hobby to a side hustle. Or you may be approaching retirement age and are pondering using your extra freedom to begin a whole new business venture. However, if you are planning to turn your hobby into your income-producing future, you’re in the right place.

We’ve written previous blogs looking at some of the things you need to consider when starting your own business, so have a read of them for some general suggestions. In this blog, we’re going to specifically home in on DIY business cover and give you an insurance 101 for new crafters.

Insurance for your new crafting business will be one of the foundations you will need in place, alongside ordered admin routines, well-thought-through storage space and a solid website or social media presence. Once established, your business will be able to run steadily on a daily basis. Another analogy is that of train tracks; the train driver doesn’t have to think of which way to turn when he pulls out of the station, as the rails take him in the direction in which he needs to travel. In the same way, once you have these basics in place, you don’t have to think about them every day; your business should run smoothly. This enables your time and energy to be poured into what you love doing best…creating stunning and unique hand-crafted products out of your own skill set.

Insurance can feel a little overwhelming, especially if this is your first exploration into the world of self-employment. However, we can reassure you that it is in fact very straightforward and remarkably easy to set in place. The main thing is that you need to decide what type of cover you need, from various different options. Craft Insurance is a family-run business and as such we value each one of our customers and make sure we communicate directly with you. In this way, we stand out from other companies, in that you will not have to wait in line for an unknown call handler. When you contact us, it will be either Naomi or Sam who will reply. So, what are the DIY business cover options for your new enterprise?

The first ones to consider are product and public liability insurance. Product liability covers any claim of damage or harm caused by one of your products. Even if it is not your fault, it will cover legal fees or any compensation required. It covers you whether you sell in person, online or in a shop. There is no excess. Public liability insurance covers you for any claim made against you, an employee or a volunteer for harm or damage done by an action or omission of yours. It covers you both on your own property or while you are out and about demonstrating or selling your crafts. Like product liability, there is no excess. Neither of these is are legal requirement, but are often required by craft fair organisers prior to you booking a place. They cover you for all those completely unforeseeable and thus unpreventable events which no amount of risk assessment could anticipate. An example might be a slip or trip hazard which arises out of nowhere, despite a thorough risk assessment on your part. They are a kind of sleep easy insurance; you know they are in place to protect you and your business and hence you are able to focus on creating your stock and growing your business.

The next component of DIY business cover which you might consider is business items insurance. This allows you to insure individual items which are essential for the running of your business. This could include tools, finished stock, raw materials, computer and photography equipment. It also covers you for items you take with you whilst out and about, selling or demonstrating your craft. You can insure electronic card readers, portable electronic equipment and all you need for your stall.

Finally, as your business grows and you take on staff, you will need to look at Employers’ Liability. Whether you are a sole trader or a limited company, you will probably have a legal requirement to have up-to-date Employers’ Liability. This is not only for full-time staff but also covers temporary staff and volunteers. It covers you for any claim made against you by an employee or volunteer for injury or illness as a result of the work they do for you. The price is based on the number of employees/volunteers you have and, similar to previous insurances, the excess is zero.

So, that is DIY business cover in a nutshell. We realise that all our budgets are being squeezed and that insurance could seem like an added extra that you could manage without. This could be the case, but equally if the unexpected does happen and you are not insured, the impact on your business could be crippling. It can be helpful to see craft insurance simply as a part of your set-up costs and budget for it as such. We offer good value and are here to talk it through with you, so that you only pay for what you need. So, get in touch and we look forward to hearing about your exciting new business venture!