INSURANCE GUIDE
Craft Business Insurance UK
Public liability, product liability and stock cover for UK craft makers, Etsy sellers and craft fair traders.
TL;DR
- Product liability covers claims that a handmade product you sold caused injury or property damage.
- Public liability covers third-party injury and property damage at craft fairs and markets.
- As a maker you are treated as the producer under the Consumer Protection Act 1987 - your liability is direct.
- Etsy and online selling do not require insurance but craft fairs and markets almost always do.
Product Liability for Craft Makers
When you make and sell a product, you are the producer under the Consumer Protection Act 1987. Unlike a retailer who can sometimes point to the manufacturer for liability, a craft maker cannot - you made the item. If your handmade product causes injury or property damage, the claim comes directly to you. Product liability insurance covers legal defence costs and compensation for such claims. This is the most important cover for any craft business selling physical handmade goods.
Public Liability at Fairs and Markets
Craft fairs, markets, and maker events typically require stallholders to hold public liability insurance as a condition of participation. Cover limits of £2m or £5m are commonly specified. Public liability covers injury to customers or other stallholders caused by your stall setup, display equipment, or your presence at the event. It is separate from product liability, which covers claims arising from products sold.
What Types of Craft Are Higher Risk
Craft products that come into contact with skin, are consumed, or are used by children carry higher product liability risk. Candles, wax melts, and bath products face fire and skin reaction risks. Handmade food products face allergen and food safety risks. Children's toys and accessories face specific safety standard requirements under the Toys Safety Regulations 2011. Confirm that your policy covers the specific types of products you make and sell.
Online Selling and Insurance
Selling on Etsy, Not On The High Street, or similar platforms does not require insurance from the platform. However, selling products to the public creates product liability exposure regardless of the sales channel. A buyer who is injured by a product purchased online can bring a claim against you just as if they had bought it at a market stall. Product liability insurance is as important for online craft sellers as for physical market traders.
Related Guides
Disclaimer
This guide is for general information only and does not constitute financial or insurance advice. Kaeltripton.com is not regulated by the FCA. Always read policy documents in full before purchasing cover.
Frequently Asked Questions
Does craft insurance cover me if I teach craft workshops?
Teaching craft workshops creates both product liability (materials you supply to participants) and public liability (injury during the workshop) exposure. Many craft insurance policies can be extended to cover workshop and teaching activities. If you teach workshops in addition to selling products, confirm that both activities are within the policy scope.
How much does craft business insurance cost?
Sole trader craft insurance with £2m public liability and product liability typically costs £50-150 per year for most craft types. Higher-risk products - candles, food items, skincare - may attract higher premiums. Adding stock cover, tools cover, and income protection increases the premium but provides more comprehensive protection for a growing craft business.
