Craft stalls are a great and cost effective way for crafters to increase their customer base. There is also the chance to meet other crafters and enjoy time with like minded people.
It isn’t always as simple as booking a table and turning up, however. It’s a good idea to consider whether you need craft stall public liability insurance.
Many events require stallholders to have a policy in place in order to participate.
Our guide explores the type of crafters insurance policies that would cover your business when attending a craft fair.
Whilst there’s no legal obligation to hold this type of policy, it can save a lot of worry and expense if someone does bring a claim against you.
What is Craft Stall Public Liability Insurance?
Craft stall public liability insurance offers your business protection against legal claims brought against you by members of the public as a result of your business activities.
Policies can cover many types of incident, but the main trigger for compensation claims is based on negligence resulting in loss or injury. For example, if a customer tripped over part of your display at a craft fair, they might take legal action against you seeking personal injury compensation.
Common types of claim can include personal injury or damage to property in your premises or in a public place. Public liability insurance covers you against compensation claims and associated legal fees.
Do You Need Public Liability Insurance for a Craft Stall?
Any crafting business running craft stalls at public events should consider appropriate public liability insurance. There’s no legal obligation to hold a policy, but many organisers of craft fairs and similar events will insist on it.
Some examples of craft businesses that may need public liability insurance are:–
- Wax melt businesses
- Candle makers
- Handmade cards
- Handmade soaps
Anyone that trades as a business a public event such as a market, should consider a public liability policy.
This type of insurance covers a range of incidents that might happen at a public event. For example, you might have a member of the public trip over your stock as you are setting up. They might wish to complain that your stall was unsafe and they have twisted their ankle as a result.
Potential Consequences of No Public Liability Insurance
The cost of public liability insurance to cover you at craft fairs and similar events is very low.
Defending a legal action, even if you were not at fault, can be very expensive and could spell the end of your small business.
Solicitors charge based on an hourly rate. The amount of time they would spend on a claim against you would depend on the complexity of the case.
Depending on your location, and the experience of the solicitor you consulted, the UK average hourly rate for legal representation regarding personal injury claims would be £111 to £210. In London, it would be £130 to £300. Source – Unbiased.co.uk, how much does a solicitor cost?
If you are a sole trader, responsibility for any legal claim will be made against you personally rather than the business. The potential financial implications should be taken into consideration.
Can You Get Craft Stall Insurance for One Day?
Perhaps you feel you do not take part in fairs or markets regularly enough to justify an annual insurance policy. There are policies that will provide craft stall insurance for one day.
Just be mindful that some insurance policies are activated on the day of purchase.
So if you get yours in advance of the event, make sure you read the small print to make sure you are properly covered.
There are specific policies out there for crafters, which offer a more enhanced cover than public liability insurance.
As a small business reliant on the income, it makes sense to be as covered as possible. It only takes one claim to put a business under huge financial strain. This can be avoided by exploring crafting insurance policies to see if they would meet your business needs.
Below are some examples of what type of cover is offered by craft insurance policies. This may be relevant depending on your requirements.
Product Liability Insurance
When you sell your products to the public, product liability insurance offers your business protection if a customer takes action against you because of injury or loss suffered in relation to your product.
It covers you for incidents involving products you have manufactured, supplied or sold. This type of insurance policy will often require you to fully comply with product labelling rules.
For example, if you are selling candles or wax melts each product should have the appropriate safety warnings on the labels. These should warn customers of appropriate safety measures for domestic use.
Employers Liability Insurance
If you decide to take on an employee, even just temporarily, then you need employer liability insurance.
Failing to have this cover can leave you with a hefty bill if your staff member has an accident on your premises or as a direct result of working for you. Any claim they make against you can be covered by having the appropriate insurance in place.
If they become ill or injured while at work, they may pursue a legal claim. Not having the appropriate insurance in place to deal with this can put you out of business and in debt.
Business Equipment & Stock Cover
Another option to consider when attending craft fairs and other events is business equipment and stock cover.
If your business involves expensive equipment and lots of materials, having this insurance is sensible. Also, if you run your business online with the use of a laptop or PC then such insurance can cover these items too.
You may keep a great deal of stock on the premises and this policy will protect it in the event of a fire or other incidents.
If you are running your business from home, your domestic insurance policy will not cover for loss of business equipment.
It is always a good business decision to take out insurance when you sell handmade crafts. This protects your business against any claims made against you. It offers financial help with the legal process.
Craft insurance means you are protected against a range of scenarios your business may be faced with. If you attend craft fairs or deal with the public day to day then having insurance is a must.