TL;DR
Craft business insurance typically combines public liability (covering injury or damage to third parties), product liability (covering harm caused by products you sell), and stock cover (protecting your materials and finished items). Most craft fairs and markets require a minimum of 2 million pounds public liability cover. Annual premiums for sole trader crafters start from around 60 to 120 pounds. The FCA regulates insurance products but does not regulate the craft or market trading sector directly.
Last reviewed: June 2026
Running a craft business in the UK, whether selling handmade goods at markets, online via Etsy or Not On The High Street, or from a studio, involves real commercial risks. A customer could slip at your market stall. A product you made could cause an allergic reaction or injury. Your stock of materials or finished goods could be stolen or damaged. Without insurance, any of these events could result in a significant financial loss or a legal claim you would have to meet personally.
Craft business insurance is a packaged policy designed specifically for the risks faced by makers, crafters and creative sole traders. This guide covers what it includes, what craft fairs require, how much it costs and what to check before buying.
KEY FACTS
- Public liability insurance covers injury to third parties or damage to their property caused by your business activities.
- Product liability covers claims arising from products you make or sell causing harm.
- Most UK craft fairs require minimum 2 million pounds public liability cover; some require 5 million pounds.
- Annual premiums for craft insurance start from around 60 to 120 pounds for basic sole trader cover.
- Insurance for food products, candles, cosmetics and jewellery may carry additional requirements or higher premiums.
- If you employ anyone, even part-time, employers liability insurance of at least 5 million pounds is a legal requirement.
What craft business insurance covers
Public liability insurance is the core cover for most craft businesses. It pays for compensation and legal costs if a third party (a customer, member of the public or event organiser) makes a claim against you for injury or property damage caused by your business activities. For example, if a customer trips over your display stand at a market and breaks their wrist, public liability covers the claim.
Product liability insurance covers claims arising from the products you sell. If a customer has an allergic reaction to a candle you made, or a piece of jewellery breaks and causes an injury, product liability pays for the legal costs and any compensation awarded. Product liability is usually included automatically in craft business insurance packages and is essential for anyone selling handmade items directly to consumers under the Consumer Protection Act 1987.
Stock and equipment cover protects your materials, work in progress and finished goods against theft, loss or damage. This is particularly important for crafters who transport stock to multiple markets or events throughout the year. Cover can extend to stock in transit and at the event venue, not just at your studio or home. Check whether the policy covers stock at third-party venues explicitly, as some home business policies exclude goods taken off the premises.
Some craft insurance policies also include tools and equipment cover, public and product liability for teaching or workshops, income protection if illness prevents you from trading, and professional indemnity if you provide advice or tuition as part of your business.
What craft fairs and markets require
The vast majority of UK craft fairs, artisan markets and Christmas markets require stallholders to hold public liability insurance with a minimum cover level, usually stated in the stallholder application or terms and conditions. The most common requirement is 2 million pounds per claim, though larger events, National Trust sites, council-run markets and indoor shopping centre events often require 5 million pounds or more.
Online platforms including Etsy and Not On The High Street do not currently require sellers to hold public liability insurance as a condition of trading, but they do not indemnify sellers against third-party claims. If a product you sold causes harm, the claim comes to you personally. Product liability cover is therefore advisable regardless of where you sell.
Always read the event organiser's specific requirements before applying. Some organisers ask for a copy of your insurance certificate as part of the application process. Most craft insurance policies include a certificate of insurance that you can download and send to event organisers when required.
Food, cosmetics, candles and regulated products
Certain craft product categories carry additional regulatory and insurance considerations. Food products, including baked goods, preserves, chocolates and confectionery, must comply with food hygiene regulations and may require registration with the local council as a food business. Insurance for food products may be higher risk-rated and some standard craft policies exclude food entirely.
Cosmetics, skincare and soap products sold in the UK must comply with the UK Cosmetics Regulation, which requires a safety assessment by a qualified cosmetic chemist before a product can be placed on the market. Insurers may ask whether you have a product safety report in place when quoting for cover on cosmetic products. Without a valid safety assessment, some claims may be contested.
Candles require a CE or UKCA mark and must comply with the Candles (Safety) Regulations 2002 for nightlights and floating candles, and the General Product Safety Regulations 2005 more broadly. Insurers underwriting candle product liability will check whether you have conducted appropriate safety testing and labelling.
Jewellery sold in the UK must comply with the Restriction of Hazardous Substances Regulations where relevant and basic trading standards. Children's toys and accessories require additional compliance with the Toys (Safety) Regulations 2011. Failure to comply with the relevant regulations can void product liability claims.
Employers liability: when it is legally required
If you employ anyone, even casually or part-time, employers liability insurance is a legal requirement under the Employers Liability (Compulsory Insurance) Act 1969. The minimum cover required is 5 million pounds per claim, though most insurers offer 10 million pounds as standard. The penalty for trading without employers liability when you have employees is up to 2,500 pounds per day.
The requirement applies to employees in the traditional sense but also to some workers who might be considered self-employed in other contexts. HMRC's employment status tests, rather than the label on the contract, determine whether workers need to be covered. If in doubt, seek advice from the Health and Safety Executive (HSE) or your insurance broker.
How much does craft insurance cost
Annual premiums for craft business insurance vary depending on the types of products you make, the level of public liability cover, your annual turnover and any additional covers included. For a sole trader crafter selling fabric goods, ceramics, paper products or similar at markets and online, basic policies with 2 million pounds public liability and product liability typically start from around 60 to 120 pounds per year.
Specialist providers including Hiscox, PolicyBee, Craft Insurance, Salon Gold (which covers craft teaching) and Simply Business offer policies tailored to craft businesses. Comparison is available via broker platforms where multiple underwriters quote against the same risk profile. Always check the policy exclusions before buying: some cheap policies exclude certain product categories, events with more than a certain number of attendees, or overseas sales.
Frequently asked questions
Do I need insurance to sell at a craft fair?
Most UK craft fairs require stallholders to hold public liability insurance, typically with a minimum of 2 million pounds cover. Even where it is not required, it is advisable. If a visitor is injured at your stall or by your products, you are personally liable without insurance.
Is my craft business covered by my home insurance?
Standard home insurance policies do not cover business activities, business stock or public liability for a business. Some home insurers offer a business add-on for small home-based businesses, but these typically have low stock limits and may not cover trading at external events. A dedicated craft business policy is usually the more appropriate solution.
What is the difference between public liability and product liability?
Public liability covers injury or property damage caused by your business activities, for example a customer tripping at your stall. Product liability covers claims arising from products you have made or sold causing harm, for example a candle starting a fire or a soap causing a skin reaction. Both are typically included in craft insurance packages.
Do I need insurance if I only sell online?
Yes. Selling online does not eliminate product liability risk. If a customer is harmed by something you made and sold, they can claim against you personally regardless of the sales channel. Product liability insurance covers these claims whether the sale was made at a market, via Etsy or through any other channel.
