Having a business selling wax melts is about more than just your product. You need to make sure you have the right wax melt insurance in place to protect your business and finances.
Although the need for this type of policy might not be immediately obvious, it offers many benefits at relatively low cost.
Wax melts and candles are very popular craft items and many people have lucrative side gigs or full time businesses selling them. Our guide looks at what insurance policies your craft business needs, and how they can help your business.
Do You Need Insurance Sell Wax Melts?
Wax melt insurance offers valuable protection if a customer has an accident involving one of your products.
Even if making and selling your melts is a hobby, you could still be liable if anything went wrong for one of your customers.
An insurance policy is a low cost way to make sure you’re protected. There are also some scenarios where you’ll need craft insurance to access events where you can sell products.
Craft Fair Insurance for Stallholders
Many craft fairs will require sellers to have insurance in place before allowing them to book a stall.
Craft fairs can be a great way to get your product seen by lots of potential customers. However, the organisers of these events often want to ensure all stallholders have public liability insurance in place.
Public liability insurance covers you in the event of a third party taking legal action against you in the event of them being injured, or suffering damage to their property after an incident relating to your business.
If you have an employee, you’ll also need employers liability insurance. You might wish to arrange event cancellation insurance if your attendance at a craft fair or event involves significant outlay.
Many fair organisers will require businesses to show proof of craft stall insurance before booking a spot. Displaying your insurance certificate on your stall will create a professional impression.
But what does insurance for craft businesses cover, and what other insurance might be needed?
Legal Claim Protection
When solicitors get involved, costs can rack up very quickly. If a legal claim was brought against your business, you’d need to consult a solicitor.
Even if your wax melt business is a side hustle, you should look at being insured. Perhaps a customer trips and falls over a basket of your product at a craft fair. Or they have a house fire after leaving a burner with your melts unattended.
Even if a legal claim has no merit, it can cost you time and money you can’t afford to defend yourself. Wax melt insurance offers protection, you can engage a legal advisor deal with it and concentrate on your business.
Cover For Business Use at Home
If you’re running a wax melt business from home, your home policy won’t cover you for business use.
If you have regular visits from customers in your home, it’s important to make sure you are properly covered. You need to make sure you have proper public liability insurance in place. This will cover you against any incidents your customers may have in your home.
Home insurers would not offer cover for any claim made against you, or for any damage or loss of property you suffered in relation to your business activities. This means getting cover for items relating to your business is something to consider.
You should also inform your home insurer of your business activities. In many cases it will not affect your premium. They may also be able to offer you cover for your business activities.
What is Wax Melt Craft Insurance For?
Crafters insurance for wax melt makers will cover the business against expensive legal claims, and can protect against any loss of stock and equipment.
If you run your business from home, you should consider how you are using your domestic property.
You should consider:-
- If you will be storing stock at home.
- Will customers be visiting your home to purchase wax melts?
- If you store business equipment at home, how much would it cost to replace?
- Will you be taking on employees to help run the business?
These questions will help you understand what type of cover you need to get to protect yourself from financial loss.
Public Liability Insurance
Even when you don’t have a shop, public liability insurance is advisable for all small businesses.
It will protect you from claims arising from any third party in relation to the wax products you make. This could include personal injury claims by customers who came to collect a product.
Public liability insurance will also protect you when selling your wax melts at craft fairs and other selling events.
Employers’ Liability Insurance
If you will be employing staff, even if it is just the odd day here and there at events, you will need employer’s liability insurance.
This type of insurance will protect you from claims made by staff who are hurt whilst working for you. Personal injury claims can be expensive to defend and pay out.
Product Liability Insurance
Product liability insurance covers you in the event of an incident involving your product which results in a legal claim against you.
This type of policy will help protect your business from the costs of legal action, and any compensation payment you may have to make.
There may be certain requirements for this insurance to be valid. In the case of wax melt businesses this would include placing full instructions for safe product use on the packaging.
If you’re a sole trader, and you sell a faulty product, you can be held personally responsible for the consequences. Proper insurance will give you confidence and peace of mind when trading.
If you hold a lot of materials, or completed products you might wish to insure yourself against loss or damage.
Stock loss can cause interruption to business cashflow. Should you suffer loss or theft, proper insurance can help keep your business afloat and protect your income.
Business Equipment Insurance
Do you use expensive or difficult to replace equipment to make your wax melts? If losing your equipment would not be affordable, you should consider proper insurance cover.
Essential business equipment could include computers, and any machinery or devices you use to manufacture your products. These may not be covered under a home policy, so it is important to check this with your home insurer and obtain the right cover if needed.
When Do You Need to Get Craft Insurance?
Ideally, you should get craft insurance cover before you commence trading. You are liable for anything that goes wrong as a result of your products or services.
Insurance should form a part of your business start up check list. Starting a new business is expensive, and if you had to deal with a legal claim or replace expensive equipment early days it could spell the end of your enterprise.
With this in mind, you should get a policy in place as soon as you start creating your products ready to sell.
Insurance to sell wax melts from home is not a legal requirement. However, you should bear in mind that your domestic policy will not provide cover for losses or legal claims arising from your business activities.
It’s not a legal requirement to hold public liability insurance for craft stalls. However, some events will require stallholders to have a policy. Proper insurance will also protect you against any legal claims from members of the public if they have an accident around your stall. For example, tripping over some of your stock in a crowd.