Enjoy Red Carpet Treatment with a Handmade Rug

A handmade rug is not just a piece of décor; it’s a work of art that can help to transform any plain room into a tranquil, stylish space. Not to mention the rich history of the intricate craftsmanship behind handmade rugs, which has made them a lasting example of luxury and style.

The history of rug making dates back centuries, and their origins can be traced back to ancient times, with evidence of rug weaving dating back to 2500 BC in the period of ancient Mesopotamia. Early rugs were not only functional floor coverings but they were also a way of expressing culture and status through artistic creations. 

The earliest rugs were handwoven using natural fibres that included wool, silk and cotton. Nomadic tribes that roamed Asia and the Middle East were amongst the first rug makers. It is thought that they crafted rugs that featured intricate geometric patterns and also included motifs that were inspired by their environmental surroundings.

One of the most well-known ancient rugs is the Persian rug which dates back to the 5th century BC and is celebrated for its timeless beauty. These rugs are renowned for their hand-knotting techniques as well as their vibrant colours and their typically detailed patterns. Persian rugs continue to be highly sought after today.

In the 15th century, European explorers brought back exotic rugs from their travels to the Orient and the Middle East. These rugs inspired European artisans to experiment with rug-making for themselves. The result was a design of a rug that was a blend of Eastern and Western design elements, colours and patterns.

Rug-making then made its way to the New World through European settlers. American Colonial rugs featured simple patterns and were woven with locally available materials such as wool and cotton. These rugs are still incredibly popular across the United States. 

The 18th and 19th centuries saw the Industrial Revolution revolutionise rug making (along with many other areas of our society). New machinery and techniques allowed for the mass production of rugs, making them more accessible to a broader audience and allowing them to be made in varying sizes and with a variety of different materials. 

While rug making was not originally a British tradition, in the 18th century, the demand amongst the upper class and the aristocracy for luxurious and stylish floor coverings led to the importation of fine Oriental and Persian rugs. These exotic rugs, with their intricate patterns and vibrant colours, became prized possessions in British homes. They graced the floors of grand estates and stately manors and can be seen today in many National Trust properties across the United Kingdom.

British artisans then began to emulate the styles of the rugs from the Orient and Persians, and this increased the production of British-made rugs throughout the 19th century. These rugs often featured a blend of traditional designs and new, stylish patterns reflecting the evolving fashions and tastes of the era. 

Handmade rugs have evolved significantly over the years, reflecting the changes in our tastes and styles, as well as the evolution of technology and equipment and our evolving and expanding cultures.

Traditional rug making involves hand-knotting individual strands of yarn or wool onto a foundation material. This then creates an intricate pattern and a rug that is durable over time. Although this is a time-consuming process, it is still used today. Contemporary handmade rugs often blend this traditional craftsmanship with modern design, colours and patterns. With growing environmental awareness, many rug makers also now use sustainable and eco-friendly materials. This includes organic wool and natural dyes that ensure the rugs that are created are not only beautiful but also environmentally responsible.

Some of the most popular types of rugs

Persian Rugs are renowned for their intricate pattern and rich colours. They are classics that add timeless elegance to any space that can be crafted into a variety of shapes and sizes.

Oriental Rugs are inspired by the artistic traditions and cultures of Asia and the Middle East. Oriental rugs often feature intricate designs and delicate craftsmanship.

Kilim Rugs are known for the flat-woven technique that is used to create them and they often have geometric patterns and vibrant colours which produce a rustic charm to the final product. 

Moroccan Rugs are characterised by their abstract designs and often plush textures. Moroccan rugs are a favourite choice for modern and bohemian interiors due to the bold designs that they include.

Tibetan Rugs are celebrated for their craftsmanship and feature intricate knotting techniques. They are also often inspired by Buddhist art and culture.

Why Own a Handmade Rug?

There are several reasons why you might want to own a handmade rug, not least of which is that every handmade rug is crafted with a great deal of care and attention to detail which ensures they last for generations to come.

Moreover, each handmade rug is a unique work of art, showcasing the skill and creativity of the crafter who created it, giving you a unique piece of craftsmanship to add warmth and comfort to any space and make it cosier and more inviting. This has become more of a focus in recent years with more people working from home. 

High-quality handmade rugs retain their value over time, and in some cases, they can even increase in value. This makes them a good investment for your home or office space. And, if you are fortunate enough to have one in your workspace, whatever you do, don’t forget to mention your handmade rug when securing insurance for your craft business! Insurance for craft businesses comes in many shapes and forms and can include content insurance for your office or crafting space. Here at Craft Insurance, we have been providing insurance for craft businesses for many years and we’d be delighted to help you find the professional insurance that meets your needs. Why not call us for a chat?

It’s good to chat, even when it’s about trade public liability insurance!

“Electric communication will never be a substitute for the face of someone who with their soul encourages you to be brave and true” Charles Dickens.

Dickens must have made this comparison during the early years of the electric telegraph; telephones were not introduced until after his death. How far we have come in “electric communication” since then! In our world of messaging, emails and chatbots, it is interesting to ponder whether his words still hold true. Are there advantages to live chat or chatbots, or does Dickens have the last word? We think there are many circumstances in our fast-paced modern world in which electronic communication is not only helpful but absolutely necessary; maybe it is more about the circumstances, the purpose of our communication and what each party would hope to gain from it. Let’s delve a little more into this fascinating world!

As business owners of small crafting enterprises, good communication will not only be one of your strengths, but something upon which you can most likely fly head and shoulders above larger, more anonymous businesses. You will have the personal touch, both within your staff team and with your customers. There may be days when a good dose of impersonality could seem appealing, when it would be much easier to delegate difficult situations to an anonymous HR team or tricky customers to an equally large marketing team. But, like it or not, you are in the thick of both your team and your customers and handled well, this is a huge advantage.

So, how can up-to-date technology help your business? Increasing numbers of websites now have a chat facility embedded within them and this is worth considering for your business. Chats can be either live or bot-led. The nature of your business will very much determine which of these would be more helpful, or whether a mix of the two would work. The advantages of using a chatbot are that customers can receive help and answers to many of their questions immediately. This could increase their satisfaction level with your business and therefore lead to more sales. In addition, chatbots can be particularly helpful as they will communicate with your customers while you are busy doing something else; this could be worth considering if your craft business is at present a side hustle and you are occupied with your main job during a large part of the working day.

The disadvantage of using a chatbot is that they are often clunky. However well programmed, they will not pick up on nuances, moods and more complex questions that fall into a more human domain. So, the advantage of immediate replies needs to be weighed up against potential frustration on behalf of your customers as their questions are not properly answered. Another possible disadvantage is that bots do not pick up on tone of voice; in the unlikely event that a customer is dissatisfied, likely, a bot will likely not deal with this well, leading to increased dissatisfaction.

Live chat on the other hand has all the advantages of communicating with a real person, among which are warmth, empathy, and a sense of humour. It allows a fairly immediate response, although not as quick as a chatbot would produce. Problems are resolved more quickly and satisfactorily and you will be able to deal with more complex out-of-the-box issues which would not necessarily have been programmed into the bot. For example, an overseas customer might require information about packaging and posting costs, insurance in the case of loss or breakages and a rough delivery period; only a real human being would be able to deal with the individuality of this question and indeed a chatbot could cause frustration.

How does live chat compare with email or telephone calls? If time is of the essence, live chat is certainly quicker than an email. Phone calls add an extra layer of humanity to the communication including tone of voice, as well as warmth, empathy and humour. Emails are good for straightforward queries demanding a quick response. Both they and live chats allow web links to be forwarded, an option which is not available on a phone call.

There is much to weigh up as you consider what the best modes of communication are for your unique business; for example your own time availability, your customer base and your budget. Here at  Craft Insurance customer satisfaction is something we value highly and communicating well with you is a large part of that. This is our whole-time family business, and as such Naomi and Sam are always here to speak to you as well as to answer emails. For our business model, this is the best combination. For example, a client may wish to find out whether she/he needs trade public liability insurance. A quick look at our FAQ’s will give a general answer, but will obviously not be applied directly to their situation. The client could then send off an email which we will respond to within twenty-four working hours, explaining how trade public liability insurance is needed in their situation. This can include both general links and advice applied directly to the company and can then be sorted quickly and efficiently. However, sometimes trade public liability insurance might be required with more urgency, maybe our client has a one-off event and needs cover for the following day. In this instance, a phone call will be the fastest way to explain what is required and give peace of mind, ensuring they can put all their energies into the event ahead. Either way, we are here for you and excited to be a small part of your growing businesses.

So, was Dickens right? Probably! At least in as far as no amount of emails, chats or phone calls are a substitute for a deep, soulful conversation with someone who encourages you to live life as your best self. However, the others are essential to our modern world and within their confines we certainly hope to encourage you to be bold in your business and live life to the full!

Ideas for Christmas Parties and Christmas Party Insurance

Christmas is coming! Whether you dive into the full-on multi-sensory experience of tinsel, lights and jolly songs, whether you prefer a more muted run-up of evergreens, gingerbread houses and carols sung by choirs, or whether you actively try to raise anticipation by marking Advent as a season of waiting and preparation for Christmastide to follow, we cannot but be bombarded by Christmas preparations all around us. Here at Craft Insurance, we are big fans of Christmas. As a family-run business, an opportunity for all those we love to gather around the table and enjoy good food, recount the joys and challenges of the previous year, exchange gifts and share laughter is one we anticipate with delight.

As crafters, it is also one of the high marketing moments of the year, which brings with it both great opportunities and the potential for rising stress levels. How can you maximise this fantastic sales opportunity while still keeping time for your own Christmas preparations? One answer might be to get on board the growing trend of craft parties.  Christmas workshops or craft parties have been quietly growing in popularity over the past few years, and are hosted across the land, by large national organisations like the National Trust, by thriving craft party businesses and by local or individual craft hubs. They offer a wonderful alternative to over-indulgent office parties, a fun pre-Christmas event at which friends can gather and even a space for over-excited children to focus on learning a new skill.

The sky is the limit when it comes to the crafting skill which takes centre stage at your workshop or party; most crafts can be adapted to this setting. Wreath-making workshops are possibly the most widely available, but candle-making lends itself well to the festive season, or perhaps painting some ceramic tea light candle holders. Creating Christmas decorations using a wide range of materials from ceramics to paper origami, designing Christmas cards with lino printing, watercolours or botanicals, or constructing an evergreen Christmas garland would all make wonderful occupations for a Christmas craft party. Felting, weaving and crotcheting can all be adapted around a Christmas theme to create a variety of cards and decorations.  Taking it a step further, kiln-formed glass techniques can be taught, fashioning decorations such as glass Christmas trees to take home. Who could resist an afternoon of warmth, chatter and friendship while learning a new skill and coming away with a beautifully packaged Christmas gift, a stack of cards which will bring delight to friends and family or a set of decorations with memories of a cosy, enchanting afternoon spent with friends?

Craft workshops and parties not only provide a wholesome alternative to the annual office party, but they will also offer an oasis of time for friends and family members to connect in the midst of a busy season. As a family-run business, we at Craft Insurers are passionate about the importance of community; of real-life connections, friendships and communication. We have said it before, but it is worth reiterating; crafters have an ideal vehicle for bringing people together as you share your craft in an atmosphere where there is space for everyone, where warm drinks and conversation flow and good memories are made.

We hope we have inspired you to take a look at the potential of holding Christmas workshops or parties, but what now are the practicalities you need to consider? Firstly, make sure you charge a fee which not only covers costs and reflects not only your time and skill, but also the added value of community and mental well-being the time will proffer. On one hand, this is something on which a price cannot be placed, but in our fast-paced world where we arguably don’t have enough time to simply be with others, a space such as this will do your customers’ mental health untold good.

You will need to find an appropriate space in which to hold your gatherings. Maybe in a local Arts Quarter, Arts Hub, village hall or community centre. As you seek out a venue, you too will be making connections. It may be you could join with a fellow crafter to offer an event with a blend of skills; if you usually work alone, this could bring a sense of teamwork into your working days.

An important factor to consider is what type of party insurance UK you will require. Party insurance UK is not a legal requirement, but is strongly recommended for a workshop or party as we have described. As your circumstances, your business and the type of gathering you are planning will be completely unique, it would be best to get a bespoke package, tailored around your individual requirements. This is where we, as a small family business can ensure you get the best possible deal as we listen to and assess your insurance needs. Depending on your plans, you may require any one of public liability insurance, equipment insurance, employer’s liability or a one-off party insurance. It’s not as complicated as it sounds; a simple phone call will point you in the right direction and as your mind is put to rest over any potential problems which may occur, you will instead be able to focus your full attention and creativity on planning a fantastic workshop or party. Drop us a line or pick up the phone and either Naomi or Sam will be here to talk you through the best party insurance UK option for you.

As the Christmas season approaches in full swing, we wish you every success as you share your craft and talents with others at fun, festive events!

What is product liability insurance and why might I need it when sourcing sustainable materials?

It’s fun to wonder what might be a crafter’s idea of an Aladdin’s cave. Might it be a treasure trove of glittery gems, colourful beads, sparkling silver wire, clasps and studs? Or could it be a neatly ordered room with every colour and texture of yarn you can imagine, organised by hue and tone in ceiling-high, fully stuffed box shelves? Or maybe a gorgeously fragranced room of essential oils, dried herbs and other botanicals, lye, bowls, spatulas and thermometers; all you would need to develop the most enticing range of handmade soap? Or possibly it could be floor-to-ceiling rolls of fabric, with plenty of overflowing baskets of tempting offcuts through which to rummage? 

What might your crafter’s Aladdin’s cave look like? It’s fun to imagine, and while your dreams may not become a reality, there might be some reflection of them in real life, in the very tangible Scrap Stores located around our nation. These amazing stores, filled to bursting with salvaged surplus from local industry or business can be located throughout our towns, cities and countryside. They generally run under one or two business models. The first one, a charity called Children’s Scrap Store is open to schools, youth or children’s groups, churches or other social organisations. For a small fee, a membership card is issued and then donations given for the materials collected on each visit. Membership is often extended to commercial crafters. The second model is a social enterprise model, by which the scrap store is opened to anyone and profit ploughed back into local social projects. Clothes and furniture may be collected for distribution alongside the scrap store materials, workshops, training and children’s holiday clubs may be held on the premises. Funds might be raised through initiatives such as children’s parties. Either of these models offer opportunities for crafters.

Scrap stores exhibited recycling before the main population had begun to think in this way.

By collecting clean and safe waste products from local business and industries, they are both reducing landfill and lowering carbon emissions by minimising the need for incineration. The stores have a constant flow of scrap material, and part of the fun of visiting one is that it is a bit of a lottery as to what you will find. You may go with a mental shopping list and come away with none of what you were looking for but a couple of bagfuls of quirky materials full of creative potential. They are thus a wonderful and exciting source of sustainable materials.

Here at Craft Insurers we often champion our clients’ ability to source environmentally sustainable and ethically sourced raw products. If you are able to do this, it is well worth flying your ethical credentials on your promotion and marketing media.  Customers are increasingly looking for goods made with sustainable products and will pay a premium for them; scrap store finds certainly fulfil this criteria.

Imagine now you have created some unique and beautiful products using sustainable materials, maybe from a scrap store, and are ready to release them to a band of delighted customers. It is sometimes at this stage that crafters think about insurance, and in particular product liability insurance. Is this something you will need, even if your goods are of a high standard and made with sustainable materials? The answer is, that while product liability insurance is not a legal requirement, it is highly advisable. If you are selling in any real-life setting, such as a market, fair or small shop, the organiser or owner may well ask for it.

So, what is it and why is it a good idea to have it? Basically, product liability insurance covers you against any claim a customer may make against your product even when it is not your fault. It covers your legal defence and costs, and any compensation that may be demanded. It is often hard to imagine what might go wrong with your product and thus lead to a situation like this. However, the whole point of both public and product liability insurance is that it offers protection against those incidents you cannot possibly foresee and thus cannot possibly prevent. This is why we call it a sleep easy insurance. Once in place, you can put all your creativity and energy into creating the best possible products for your appreciative customers.

Would you need it for online selling? The answer again is that while it is not essential, it is a wise precaution. There could be an argument that it is even more advisable if selling online. Relationship with our customers is so important and while you will do all you can to give your customers a good buying experience online, it will not be the same as a smile and chat when selling face to face. If there were a problem with one of your products, it could be argued that a customer who has met you, maybe heard a bit of your story and seen both your passion and hard work, would be less likely to file a legal complaint and more inclined to resolve the issue directly with yourself. Either way, product liability insurance will have you covered and put your mind at rest. Pick up the phone or drop us an email and either Naomi or Sam will get back to you and guide you through the best, most cost-effective cover for your unique business.

As we look towards Christmas, increasing numbers of consumers are not happy with the excessive commercialism around this time and the waste, landfill and general damage to both our beautiful world and our squeezed bank accounts. This is an excellent opportunity for small, local crafters to take centre stage, emphasising your sustainable credentials and lasting value of your products. Time to go and gather together an Aladdin’s cave of sustainable raw materials and get creating!

Do you Need Public Liability Insurance for a Craft Stall?

You may be reading this as a veteran craft fair exhibitor with a wonderful collection of memories, experience and advice to give to those just stepping into the craft fair arena. Or you may be reading it because you are preparing for your very first craft fair and wanting to amass as much information as possible. Or, maybe you have yet to make that initial call in answer to a local event organiser. If you are new to the world of craft fairs there will be many questions and much to organise. How much stock do you take? What range of stock is required? And, if you have come to this website, do you need public liability insurance for a craft stall?

Many crafters would agree that taking that initial step to book a table/exhibition booth at a craft stall requires some courage. It involves overcoming feelings of self doubt and and having confidence in your product. Once the space is booked, there will be much to prepare. It might be useful to consider the following questions.

–  How has the fair been advertised? If it is local to you, can you spot posters about? Can you see it shared widely on social media? If so, you can be as confident as is possible that there will be good footfall. If not, it might be well worth contacting the organiser and asking a few questions about advertising. A craft fair not only requires preparation time, but a whole day of your time to attend so it’s worth ensuring you can make the most of it.

– What groups of people will be there? This will influence the type of stock you will take. For example, an evening fair which charges an entrance fee and offers a complimentary glass of wine might attract a lot of women, whereas a Farmers Market stall which runs alongside the local junior football training might attract families with young children.

 -Are there any special days coming up which you can adapt your stock towards, eg Mothers’ Day, Christmas or Easter?

– What payment methods will you need in place? The days are past when a cash box with lots of spare change was sufficient.

– Are there display boards and if so what messages do you want to convey on them?

– Do you have a stack of business cards to hand out?

Do you need public liability insurance for a craft stall?

The answer to the last question, is most probably yes. As our website explains, public liability insurance for crafters “covers you if a customer or a member of the public makes a claim against you. It will cover legal costs and compensation.  Even if it’s not your fault, we’ll cover your defence costs“. While it is not a legal requirement, most craft fair organisers ask that you have it, and for proof of indemnity up to a certain level. While you can put all good measures in place to prevent accidents or mishaps you can foresee, public liability insurance covers you, and the organisers, against the myriad of unforeseeable events or accidents for which which you cannot possibly construct plans to prevent.

Let’s take a simple example. One of your beautiful cards might fall onto the floor and a member of the public might slip and injure their ankle. Or, the card might be dropped on the floor by a customer and you might not even be aware or it. The person with the injured ankle could then claim compensation for pain, loss of earnings, trauma etc. This sounds unlikely, and it is, but that is the whole point of public liability insurance; it covers you for unforeseen events. If you could foresee them, you would be able to prevent them.

Knowing that you have public liability insurance set in place, frees you up to make the most of all the opportunities that craft fairs have to offer.

As anyone who has attended a few will tell you, they can, and most often are, fantastic places not only to sell your products, but to meet like minded crafters, to gain inspiration and to network.

It is helpful to plan ahead as much as you are able; set a few dates in the diary for fairs and then you can work your stock production around them. However organised you are, though, the day before is often a hive of activity as you pack stock, display boards and other kit into boxes, and if you have young family, ensure plans are in place to keep the household cogs turning in your absence.

The day of the fair arrives and your alarm clock is set super early. Make the most of any quiet in the house to have a steaming mug of tea and a good breakfast to set you up for the day. Then you’re off! There is always an air of excitement as the stall holders set up their wares. It’s fun to see the blank canvas of an empty hall transformed into a riot of colour and creativity. People are generally very helpful and there is often much banter to and fro. Any glitches (and there are usually some) should be sorted out by the event organiser. Once the doors open you will begin to meet the public and if you are fairly new to this, each conversation is an opportunity to showcase your craft, to build confidence in customer relations and to take pride in what you have achieved. In addition to selling your products and taking orders and commissions, craft fairs also provide good opportunities to meet others in the same line of business and learn about future events in the area.

In conclusion, craft fairs are an integral part of our crafting scene, provide excellent opportunities to showcase your products and are most often fun to attend. With public liability insurance for your craft stall in your back pocket you can head out to succeed

What is the law for selling handmade items in the UK?

A question I have been asked on many occasions is, “What is the law for selling handmade items in the UK?”

Simply Business reported that starting a craft stall was the fastest growing small business idea in 2021, so it’s an exciting time to be a part of this burgeoning sector!

Whether you want to start a business selling your crafts online, take your products on the road with a craft stall, or approach retailers about selling your crafts, you’ll need to make sure that you’re abiding by the law regarding selling handmade goods in the UK.

So, let’s keep it LEGAL! The acronym I’ve put together below is an easy to follow guide telling you what the law is for selling handmade items in the UK…

L is for Licence.

Do you need a licence to sell your handmade products online? If you are planning on selling alcohol or food products or you have a business premises that is not your home, then you might need one. Also, if you’re selling handmade items at a market, it’s worth checking whether you need a business licence using the government’s licence finder.

E is for Ensuring Compliance

Compliance with important regulations such as Product Safety Regulations cannot be over-emphasised. Your products need to be safe for your customers. 

1. FOOD SAFETY

If your handmade products are edible you must display a list of allergens, follow strict food hygiene measures and make a list of your product ingredients available to read.

2. COSMETIC PRODUCTS.

For bath and shower products you’ll need a Cosmetic Product Safety Report which is made up of a series of tests to check:

  • Toxicity
  • Stability and Shelf-life
  • Preservative Efficacy

You can have this report created by a number of independent companies, and then keep it to hand as you could be asked to produce it by Trading Standards

3. NON-COSMETIC PRODUCT SAFETY

Product safety regulations require correct Classification, Labelling and Packaging (CLP) of substances and mixtures to be CLP compliant.

Your product labels need to disclose all the necessary information if you make candle and wax melts, reed diffusers and room sprays. If your product contains a hazardous substance, such as an essential oil or fragrance, it will need to have a CLP compliant label listing:

  • Ingredients
  • Hazard pictograms and statements
  • Allergen information
  • Supplier information

The information provided to you by your ingredient supplier, in the form of a Safety Data Sheet will tell you if there is anything else that needs to be included on the label.

It is important that you follow the CLP regulations as it is possible to make your insurance invalid if you don’t.

Make sure that your business is operating within the directives and regulation referring to the use of controlled or protected materials, or materials in limited supply which you might be using in your processes. Other laws and regulations you may also need to consider include:

  • hallmarking
  • fire safety regulations
  • gas safety regulations
  • UKCA marking(which has replaced CE marking)
  • toy safety regulations

G is for gov.uk.

Go to the gov.uk website for all the detailed information you require regarding Food Safety Regulations, Product Safety Regulations and step by step advice on how to register as a sole trader or as a limited company.

A is for Act, (Consumer Rights Act 2015, Consumer Contracts Regulations 2013)

Give the right information and offer legal consumer rights to your customers.

  • Write your own terms and conditions for your website if you have one (it’s important that you don’t copy and paste from someone else as they may not comply, and they won’t reflect your unique business)
  • Have clear cancellation and returns policies.
  • Provide accurate delivery details.
  • List your business address.
  • Provide acceptable proof of purchase where asked for.
  • List all standard costs and additional costs.

L – is for Levy, otherwise known as TAX!

Do you need to register your business with HMRC for tax purposes?

It’s a very good idea to do so at the outset, as once your business is earning more than £1,000 annually it is a legal requirement. So, first, you need to decide whether you are going to register as a Sole Trader or a Limited Company.

What is the Law for Selling Handmade Items in the UK?

To register as a sole trader, you must be self-employed and have your own business. You don’t have to register the name you are going to trade under, but if you want to stop people from trading under your business name you’ll have to register it as a trademark.

As a sole trader you will be personally liable and you’ll have to keep a record of your business’s sales and expenses. You’ll need to file a tax return every year and you’ll have to pay income tax on your profits.

As a sole trader you’ll also need to register for VAT if your turnover is over £85,000. You can register voluntarily if it suits your business, for example if you sell to other VAT-registered businesses and want to reclaim the VAT.

If you set up as a Limited Company you’ll have more paperwork than you would as a sole trader and the registration process is slightly more involved… You’ll have to:

Choose a company name
Choose directors and a company secretary
Decide who the shareholders or guarantors are
Identify people with significant control (PSC) over your company 
Prepare documents agreeing how to run your company 
Check what records you’ll need to keep

Being a limited company does offer greater benefits to your company such as increased protection from HMRC and being classed as separate from your business means that your personal assets will be less at risk if you encounter difficulties.

The law regarding selling handmade items in the UK is, in essence, fairly straightforward and it’s all about protecting you and your customers. Fulfilling your legal obligations will give you peace of mind, in a similar way to having the right insurance, and it gives you the space to be even more creative! 

Why do I need insurance for my crafting business?

People often ask us why they should have craft business insurance. It’s a valid question as they can’t see an obvious or immediate need for it.

But have you ever heard the expression, “A stitch in time saves nine?” I expect you probably have if you are reading this… but, just in case you haven’t, it means that it’s better to mend a hole when it’s small otherwise there will be more work to do to mend it when it has become larger. Getting craft business insurance when there seems to be no obvious or immediate need for it is a bit like that.

Craft business insurance might not appear important, but did you know that people actually exist who have a similar opinion towards arty or handmade products? They can’t see an obvious or immediate need for wonderful, original, handmade stuff! It makes me want to stand on a box and quote from the national curriculum…

‘Art, craft and design embody some of the highest forms of human creativity,… reflect and shape our history, and contribute to the culture, creativity and wealth of our nation.’

Whoever wrote the national curriculum agrees with me that art, design and craft are fundamental to the wellbeing of the nation. A necessity. It’s also my opinion that having the right insurance is fundamental to the wellbeing of a craft business… and it’s actually a necessity too.

If you are new to this game, let me explain a bit about insurance. There are different forms of insurance cover of which some will be absolutely imperative to the health of your business whilst others might not be necessary for you. Some of our craft business insurance is required by law, so without it your business is not just unhealthy, it’s illegal! Here’s a quick rundown on why you might need each different form of cover…

Employers liability insurance

Employers liability insurance is required by law if you have people working for you and it ensures their wellbeing. Without it, you could be fined up to £2,500 a day for each employee (eeek!) Employers liability insurance will help to guarantee the financial security of your business in the event of an accident befalling an employee for which you could be held liable. It is designed to cover the cost of a compensation claim made against you arising from an injury that has happened at work. The policy may also pay for legal costs and miscellaneous expenses and prevent a claim made against a business from spelling real financial trouble.

Public liability insurance

Public liability insurance isn’t mandatory under UK law although it may be required by your client contracts or by certain regulators or membership bodies. Most events and craft fairs will require you to have public liability insurance as they can’t afford to cover each seller for the cost of the event. It will cover you when attending any events where you are selling, demonstrating or teaching your craft, indoors or outdoors. For example, display stands can fall over and cause harm. Unfortunately, accidents do happen, resulting in injury or damage to property and, even when no harm was intended, you may be called upon to foot the bill when things go wrong. I’m proud to say that here at Craft Insurance there is zero excess on public liability insurance.

Product liability insurance

If your crafting business is online, product liability insurance will cover your products’ liability (if someone hurts themselves on one of your products for instance). This insurance will also cover you for rent a shelf scenarios, and having your items stocked by other retailers. And… you guessed it, at Craft Insurance there is zero excess on product liability insurance!

Stock Insurance

Stock insurance protects you should something happen to the craft products and materials you keep in stock. Your finished products or your craft materials stored at your business premises, at craft fairs on the stall, including over night, and whilst in transit with you, (only not when sent by post or by courier) are then covered against loss, damage or theft.

As an artist, every piece you create is bespoke and brilliant, and it’s you that chooses the raw materials and decides how it will look. It is of intrinsic worth to you and to the person who is going to love and it and purchase it. We understand this and that is why it’s your choice as to what you put into your policy. Your craft business insurance should be as bespoke as your craft and tailored to your particular business needs.

At Craft Insurance we always focus on delivering the widest cover and we have always looked for ways to improve it. That’s why we don’t charge administration fees for policy amendments or cancellation fees. This means, for example, that if you need to add or remove someone from your policy, we won’t charge you a bean for it.

If you are reading this and you have been putting off getting insured because there didn’t seem to be an immediate need, or you have been prioritising building the business, why not take the plunge today? Remember, a stitch in time saves nine!

We made a decision to take the pain away so that busy crafters can get a tailored quote in minutes. Click here to get a quote, it couldn’t be easier! To set up a DD, give us a call on 0800 919 359 or 01202 826127.