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

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! 

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.