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View Full Version : Do I need these insurances?



jw universe
05-05-2009, 02:22 PM
Hello,

I'm trying to work out my business plan for my crafts/ arty business. I'd probably work from home (no public in my house), and sell online and in craft fairs and events. Some shops might possibly do that sale or return thing but I'm not totally sure about that yet. Ok...

I know I need public and product liability insurance, seems sensible and places normally seem to want this when I get a stall somewhere.
I'm guessing I need buildings and contents insurance too!

1) I'm not planning on employing people but sometimes a friend might accompany me when I'm on a stall or mind the stall when nature calls. Do I need employers' liability insurance? Technically I wouldn't call them staff but I don't know how strict the rules are for stuff like this.

2) Say, worst case scenario, a customer asks about my product or product materials or something, and I accidentally give the wrong information and somehow get in trouble or cause a problem from it (don't know what that wrong advice or problem would be but I'm guessing maybe it happens to people). What insurance would help protect me, if there is any, or would it depend? I've heard of professional indemnity insurance but that seems to be for if you're giving consultant-type advice rather than just telling people about your products and stuff. Obviously I'd hope this would never, ever happen but I think it's important I investigate potential situations no matter how unlikely.

3) Any other insurances you think I've missed out that I might need? Or any good value companies that you can suggest? I've been trying to investigate this a little but I sometimes get insurance companies saying they don't deal with what I need :confused:

greannancrafts
05-05-2009, 02:25 PM
Ian Wallace - http://www.craftinsurance.co.uk - may be able to help,

always very helpful when you phone

Jane

AnnieAnna
06-05-2009, 09:19 AM
And the National Federation of Market Traders offers everything you've mentioned. The house insurance, which insures stock, can be got through them from Marketline, then they have car insurance which covers stock in transit and the other things you mentioned are bundled into their joining fee.
AnnieAnna
(but always read the small print)

AnnieAnna
06-05-2009, 09:27 AM
I say look at the small print because insurers focus on one aspect and if you are thinking out of the box you are not going to fir in their box.

So Ian Wallace will be looking out for your workshop and selling at fairs whereas the NFMT is thinking markets, covering helpers etc

So shop around and do tell if you find anyone doing craft, educational, demonstrations and market type selling all rolled into one.

AnnieAnna

sparkysdad
06-05-2009, 10:10 AM
I know I need public and product liability insurance, seems sensible and places normally seem to want this when I get a stall somewhere.
I'm guessing I need buildings and contents insurance too!

You dont need contents insurance "legally", but always best to insure your stock, and materials if they are going to be of any significant value.. remember you are insuring completed work at its retail value (i.e. cost to replace) NOT at the cost of materials! so make sure any quote you get has a reasonable amount of cover if you will be holding a lot of stock.

I would also look in to the issue of working from home from a mortgage and tenancy agreement point of view, often these exclude significant "work".. you may like to check where you stand regarding buildings insurance, and any mortgage you may have.

Buildings insurance will almost certainly be a requirement of your mortgage, though if you rent, it is the Landlord's responsibility.. often landlords restrict work from home because their insurance excludes it, or their mortgage terms do..



1) I'm not planning on employing people but sometimes a friend might accompany me when I'm on a stall or mind the stall when nature calls. Do I need employers' liability insurance? Technically I wouldn't call them staff but I don't know how strict the rules are for stuff like this.
A friend accompanying you is not an employee, they are there "incidental" to your purpose. If they had an accident while at a fair, then your public liability insurance (or that of the Venue/organiser) should cover adequately.. 5 mins "minding the stall" is a very very low risk, and assuming this is a friend, if anything were to arise, there would be ways and means of claiming elsewhere.



2) Say, worst case scenario, a customer asks about my product or product materials or something, and I accidentally give the wrong information and somehow get in trouble or cause a problem from it (don't know what that wrong advice or problem would be but I'm guessing maybe it happens to people). What insurance would help protect me, if there is any, or would it depend? I've heard of professional indemnity insurance but that seems to be for if you're giving consultant-type advice rather than just telling people about your products and stuff. Obviously I'd hope this would never, ever happen but I think it's important I investigate potential situations no matter how unlikely.
Your general public liability insurance will cover you for giving out incorrect information that leads to a claim.. (unless of course you were willfully negligent, or fraudulent). Professional liability insurance is as you suspect, for people in a profession such as Law where they give a professional opinion.



3) Any other insurances you think I've missed out that I might need? Or any good value companies that you can suggest? I've been trying to investigate this a little but I sometimes get insurance companies saying they don't deal with what I need :confused:
One other thing I would check is your car insurance.. because transporting stock to and from craft fairs etc is a "business use", your basic car insurance may well not cover your stock, even if the value was below your insurers cover limit for valuables.. Insurers are a weaselly bunch, and will wriggle out of everything except the "express" purpose.. With car insurance I would specifically check, as, any breach of the policy, even if unrelated to the claim you submit could invalidate a claim.

A good starting point would be to talk to direct insurers or a broker recccomended by other crafters.. explain how you envisage your business running, they will tell you which policies cover which activities.:)