What insurance do I need to sell homemade products?

The main type of cover to know about is public and product liability insurance. This protects you against accidental damage or injury caused by you in person or by a product you've sold.

Do I need insurance to sell homemade crafts?

Popular crafting marketplaces, such as Etsy, Folksy, Ebay and Not On The High Street, don't make it compulsory for you to have insurance in order to sell products on their websites. However, it is important to have appropriate craft insurance in place to best protect your business, your goods and your sales.

How can I legally sell my homemade products UK?

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.

What insurance do I need to sell products?

Product liability insurance

Protects you if a faulty product you sell causes injury to someone or damages their property. It can cover legal fees and compensation costs if someone makes a claim against you.

What insurance do crafters need?

If you're running a craft fair as a market trader, you're also working a lot with the public – and accidents can happen. Public liability insurance can help protect your business in case of third-party injury or damage, maybe caused by a trip or slip over your stall, or injury caused by one of your products.

3 Legal Protections You MUST Have In Place if You’re Selling Homemade Products

Do I need insurance to sell handmade crafts UK?

As touched on above, you do not legally require public and product liability insurance to sell at a craft stall. However, it is a good idea. If, for example, a member of the public trips over your stall and becomes injured, this cover will protect you.

Do I need insurance to sell products?

Product liability insurance is important for anyone who sells products, whether it be online or over the counter, because the seller is the first point of call for a customer if something goes wrong, and is therefore liable to be the subject of a claim.

Do I need public liability insurance for a hobby?

Regardless of what you craft, you will likely benefit from having public liability insurance. We cover a wide range of crafts which many other providers do not. These include, but are not extensive to: Cosmetics, such as Bath and Shower Products.

Do you need insurance to sell on Etsy UK?

Do I need business insurance to sell on Etsy? Put plainly, no. You are not legally required to take out any form of insurance before selling your handmade crafts on Etsy. That being said, it is generally a good idea to at least consider purchasing online retailer insurance before selling on this platform.

How much is product liability insurance for a small business UK?

The average annual cost for standard PL insurance in the U.K. runs about £118 for small businesses but can be significantly higher for those operating in high-risk fields. Public injury claims in the U.K. can cost upwards of £100,000 in some extreme cases, though most fall between £10,000 - £20,000.

Do I need to register my craft business with HMRC?

As a new business owner, you'll also need to deal with HMRC. It's important that you register as self-employed so you can pay your taxes. Then you'll need to keep up with tax deadlines for your business, filing your tax return and paying your bill on time (including corporation tax if you establish a limited company).

Do I need a license to sell homemade food UK?

If you sell, cook, store, handle, prepare or distribute, you may be considered a food business and will need to register with your local authority (Opens in a new window).

Can you make products at home and sell?

Some popular and easy things to make and sell online are soaps, t-shirts, handmade apparel, and sweets. However, you may find other items that are easier to produce depending on your skills and market knowledge.

Do I need to register as a business to sell crafts?

When it comes to crafting, there are very few areas in which a licence is essential. If you are working with and selling alcohol, food or have a business premise that isn't your home, you may need a licence. Otherwise, it is mostly acceptable for a small business to simply register with HMRC and begin trading.

Do Etsy sellers need insurance?

“Do I need insurance to sell on Etsy?” It's a common question for small business owners and makers. The answer is that you don't have to necessarily get insurance to sell or operate on the site. However, Etsy business insurance is recommended to help protect you from product liability claims.

How much is crafters insurance per year?

The annual premium for £5,000,000 Public and Products Liability is £59.00. To include Employers' Liability, the premium will be £87.00. If you would like higher limits of indemnity for Public and Products Liability (£10,000,000) prices increase to £70.50 and £98.50 (with Employers' Liability).

Do I have to tell HMRC about Etsy?

HMRC lets you earn £1,000 a year through websites like Etsy without worrying about income tax. If you had sales of more than £1,000 a year with Etsy, you need to submit a tax return. This doesn't necessarily mean you need to pay tax.

Do I have to declare Etsy sales to HMRC?

Will HMRC know if I sell through Etsy? Online marketplaces like Etsy are covered by the digital platform reporting rules. This means that they're required to collect information about the income that you receive from your Etsy sales, and then report this data to HMRC automatically each year.

Do you need to register with HMRC to sell on Etsy?

When you are ready to start your Etsy business in the UK, you need to register with HMRC. If you plan to make selling online a large enterprise, you might consider forming a limited company.

Do I need insurance to sell cakes from home?

Whether you're baking baguettes or perfecting pastries, chances are you'll face a number of common business risks. Public liability's considered an essential cover if you're dashing around delivering your baked goods to customers - and if you employ anyone, you'll need to think about employers' liability too.

What insurance do I need for baking?

Product Liability Insurance

If a customer comes across an issue as a direct result of your products, you could be liable for paying legal costs if a claim is pursued. With the correct insurance, you will be covered for any product related issues and won't have to worry about extensive legal costs.

What insurance do I need as a cake maker?

Even if you run your business from home, public liability insurance is still important. If a customer or delivery person visits your home to collect a cake and trips over a loose wire in your hallway, resulting in an injury, they could make a claim against you.

What is the difference between public and product liability insurance?

Public liability insurance reacts in circumstances in relation to the delivery of your services, whilst Products liability reacts in circumstances in relation to products you have manufactured, supplied, or sold.

How much product liability insurance should I have?

It's up to you to decide how much product liability insurance you need, based on the products you sell and the possible size of any compensation claims. Most insurers offer between £1 million and £10 million of insurance, which usually includes both public liability and product liability cover.

What is the difference between product liability and professional indemnity?

The short answer could be designed as follows: professional indemnity insurance cover claims made by clients for professional negligence or mistakes, whereas public liability insurance covers claims made by members of the public for injury or damage.