Tuesday 24 January 2017

CE Testing -What's required and how to get it-





What is the CE Mark?

The CE mark appears on many products that are traded withing the European Economic Area (EEA).

This means that;

  • The product has been tested and meets EU health, safety and environmental guidelines.
  • The product complies with EU legislation.
  • The product is allowed free movement to be traded within the EEA
By placing a CE mark on your products you are declaring with sole responsibility, that you have conformed to all legal requirements to achieve it. This means that if you list or sell something as CE marked and it isn't, then it all falls on your head. This also applies to items made and sold outside the EEA but distributed within it.

If you are a manufacturer it is your responsibility to:
  • carry out the conformity assessment
  • set up the technical file
  • issue the EC Declaration of Conformity (DoC)
  • place CE marking on a product
If you are a distributor you must check the presence of both the CE marking and the necessary supporting documentation.
If you are importing a product that is from a third country you have to check that the manufacturer outside the EU has undertaken the necessary steps. You must check that the documentation is available.

(source GOV.co.uk 2017)
(img news.dengeki.com)

What products need a CE mark?

Not everything needs a CE mark.

Here is a list of the things that may affect us as crafters

  • appliances burning gaseous fuels
  • low voltage machinery and electrical equipment (Lamps, Fairy lights etc).
  • measuring instruments (measuring jugs, scales etc).
  • personal protective equipment (personal alarms, stun torches etc).
  • Toys
CE testing is NOT required for

  • Cosmetics. Covered by the Cosmetic Products (Safety) Regulations 2008.
  • Foodstuffs. Covered by the Food Standards Act 1999.
  • Furniture and furnishings Including blankets and pillows. Covered by the Furniture and Furnishings (Fire) (Safety) Regulations 1988


Getting your products certified

YOU CAN SELF CERTIFY YOUR PRODUCTS!

Here is a link to an fantastic article by Vicki Gregory on how she went about self certifying her own toys.

IF you need to find a company who can do conformity testing for you....

Use this link to take you to the NANDO (New Approach Notified and Designated Organisations) home page.

On the left click "Country"

Then find the country you will be certifying your product in.

Click the down arrow to the right of the dropdown menu.....
....and select the piece of legislation that applies.


This will take you to an up to date list of organisations that are certified to carry out the testing



So what is a conformity assessment?

Conformity assessment involves a set of processes that show your product, service or system meets the requirements of a standard.
Undergoing the conformity assessment process has a number of benefits:
  • It provides consumers and other stakeholders with added confidence.
  • It gives your company a competitive edge.
  • It helps regulators ensure that health, safety or environmental conditions are met.
The main forms of conformity assessment are testing, certification, and inspection.
(source iso.org)

A large part of this will be a risk assessment. This identifies all the possible risks that a product could cause against the likelihood of that risk happening.

There is a link to a risk assessment template you can use HERE


What needs to be in the technical file(TF)?

Depending on the directive applying to the product, different requirements apply to what is needed in the technical file. Here is a rough guide as to what you should include in your TF;
  • Description of the apparatus, usually accompanied by block diagram
  • Wiring and circuit diagrams (if applicable)
  • General Arrangement drawing
  • List of standards applied
  • Records of risk assessments and assessments to standards
  • Description of control philosophy/logic (why it will be used)
  • Datasheets for critical sub-assemblies (If applicable)
  • Part list
  • Copies of any markings and labels
  • Copy of instructions (user, maintenance, installation)
  • Test reports
  • Quality control & commissioning procedures
  • Certificate of conformity
The TF needs to be made available for inspection on request.

How do I issue an EC Declaration of Conformity (DoC)?

An EC Doc is just a legal document that you sign to confirm that you have conformed to all of the directives regarding your product.

Use THIS template for your DoC.

Where do I place the CE mark?

Where you place the CE mark depends on what you are making. Fundamentally it needs to be "clear and non removable"

In general you should attach the CE marking to the product itself but it may also be placed on the packaging, in manuals and on other supporting literature. Rules covering the use of the CE markings vary depending on the specific EU directive that applies to the product and it is advisable to study the applicable guidance. The following general rules all apply:
  • CE markings must only be placed by you - as the manufacturer - or your authorised representative
  • the CE marking cannot be placed on products which are not covered by the relevant European directives
  • when attaching the CE marking, you take full responsibility for your product’s conformity with the requirements of the relevant directives
  • you must only use the CE marking to show the product’s conformity with the relevant directives
  • you must not place any marking or sign that may misconstrue the meaning or form of the CE marking to third parties
  • other markings placed on the product must not cover up the CE marking

(source GOV.co.uk)


If you need to download the CE logo you can do so HERE.



What will it cost?

unfortunately there is no straightforward answer to this question. It depends on how much you do yourself or if you outsource your testing.

Here is a LINK to an article that I found quite interesting on the subject of CE pricing.




Case study

Here is another link to Vicki Gregory's article on how she went about CE testing toys for her Folksy business.








Monday 23 January 2017

Not "Just" a Hobby - How to make people take your crafting more seriously-



Do you feel like your friends and family aren't giving you the support you need to run your own crafting business?

Do you hear people describing your craft as "just a little hobby" or "not really a 'real' business"

All too often, the ones who you feel should be supporting you the most don't give your craft the credit it deserves.

Here are some ways to help make those around you take your crafting a little more seriously.

Don't belittle your own craft

When you say things like "oh its rubbish" or "its just a bit of fun" those opinions rub off on other people too (this includes on social media). Describe your projects as "a work in progress" or "a design concept" instead.

Don't work for free

If you don't value your craft then how do you expect other people to. Of course you can still make and give things as gifts. But if a colleague or relative wants to commission a piece from you, then your should charge them at least the majority of the going rate (allowing for a bit of mates rates).
If you owned a garage would they expect you to do a MOT on their car for free? I doubt it.

Give your business prioritised time

...And a prioritised space. Try to keep your crafting to one area of the house, even if it's just a fold out table in the living room. Having a dedicated space to craft means you are less likely to get distracted and also people are less likely to distract you. Craft space is your space.

Treat your craft like a job

We don't mean that you should start keeping to rigorous time frames or only giving yourself half an hour for lunch. But little things like not crafting at 11am in your pyjamas make you seem much more professional.
Also, treat your customers like real clients. Answer e-mails and send out orders professionally and promptly.
Have proper stationary printed with a dedicated e-mail address for your business. missbunnyfluff@gmail.com works fine for when you were at uni, but it doesn't scream professionalism.

Emphasis your business achievements

Made your first ETSY sale? Got 100 likes on your Facebook page? GREAT! Shout about it! When you are proud of your achievements, your loved ones will be proud of them too.


Saturday 21 January 2017

Copyright - Protecting yourself and your craft business






Social media as well as other online selling platforms make it easier than ever to get your products out there. The exposure that pages like Etsy and Ebay can provide has lead many creative business to move their businesses exclusively online.
But for all its benefits this level of exposure can have its own pitfalls. Copyright and plagiarism is rife in the creative world.

This is the definition from Wikipedia;

"Copyright is a legal right created by the law of a country that grants the creator of an original work exclusive rights for its use and distribution. This is usually only for a limited time."

For your work to be protected under copyright law it must be;


  1. Original. That is, a product of your own skill, labour or intellectual creation.
      And

     2. Tangible. It must be in physical existence. You can't copyright and idea you had, even if you are convinced you invented pop tarts in the 60s.

So what does this mean for crafters?

This means that you as the creator or designer have the rights to control how your work is used/distributed/reproduced/published or adapted.

As such, a copyright infringement is "unauthorised" use of the creators work.

Giving credit where credit is due.

EDIT 23/01/17

A huge thanks to Gra Howard for introducing me to "Tin Eye"

Link HERE

Tin Eye is a piece of free online software specifically designed for reverse image searches. Just enter the URL of the page where the image is, then select the image you want to search from the available list.

There is a drop down available and if you select "oldest" then It will take you to the earliest known source of that image and ta da! You have the source!

For example, I searched for ages and thought I found the source of the below Image as the 18/12/2012. Turns out the image was actually uploaded on the 07/02/2008.

Where I thought the image was from;


Here is the actual source image;


You can use the same process to see if your own images are being used without permission.

If you find someone is using your images without permission or proper credit, then you are within your rights to ask them to remove it.

So how do I stop people using my images in the first place?

The best way is to use a watermark like this one;


(image source https://www.etsy.com/uk/shop/WoodsyGetCosy?ref=ss_profile)

These were made using a simple overlay from picmonkey, but you can also use most image editing sortware to make something similar.

If you add your details like the one on the left, then no one would be able to use the image without directly crediting your work.

What if someone is using a design very similar to mine, but not the same?

If you find an item that bears a "striking resemblance" to you own work then this is called misappropriation. A "striking resemblance" is defined as "the similarity could only have been caused by copying, and not, for example, through "coincidence, independent creation, or a prior common source"

So for example, say you make scrabble frames and you see someone else make a very similar scrabble frame. You can only accuse them of misappropriation if you can prove that the other person has directly copied your work.

Courts have relied on several factors to aid in a striking similarity analysis. Among these are:
  1. Uniqueness, intricacy, or complexity of the similar sections.
  2. If the plaintiff's work contains an unexpected or idiosyncratic element that is repeated in the alleged infringing work.
  3. The appearance of the same errors or mistakes in both works.
  4. Fictitious entries placed by the plaintiff that appear in the defendant's work. For example, fake names or places are often inserted in factual works like maps or directories to serve as proof of copying in a later infringement case since their appearance in a defendant's work cannot be explained away by innocent causes.
  5. Obvious or crude attempts to give the appearance of dissimilarity. (source Wikipedia 2017)

The best way of doing this is by showing that you work was created before theirs, and therefore they must have copied your work and not the other way around.
Do this by ensuring that the watermarks that you have put on your image have the date on them. You can also demonstrate this by using the link above to determine where the image first came from, as this will also have a publishing date.

If you cant prove this then sorry, bad luck.

Historical copyright

Copyright doesn't last forever.


Type of workHow long copyright usually lasts
Written, dramatic, musical and artistic work70 years after the author’s death
Sound and music recording70 years from when it’s first published
Films70 years after the death of the director, screenplay author and composer
Broadcasts50 years from when it’s first broadcast
Layout of published editions of written, dramatic or musical works25 years from when it’s first published
 (source GOV.co.uk)

A couple of examples of historical copyright;

Peter Rabbit

In the UK and the US, Copyright law dictates that 70 years after the original creators death their work becomes part of the "public domain". This would be the case for dear Peter Rabbit were in not for the notoriously aggressive efforts of the publishing "guardian" Frederick Warne & Co.
Warne was made responsible for the guardianship of Potters intellectual property after her death in 1943. In 2013 when the copyright was due to lapse, Warne (who had by this time been bought out by Penguin Books) engaged on a ruthless assertion of copyright, and proceeded to seek the rights for everything from Peter Rabbit toilet seats to food products.

Because of this, despite the fact that Beatrix Potter has been dead for over 70 years, Peter Rabbit and all associated imagery, literature and merchandise, is still protected under copyright law.


(property of Penguin Books PLC)



Peter Pan

This is a tale of 2 half's.

The first is the STORY written by J.M. Barrie in 1911 and PLAY written in 1928.
All rights were bequeathed to the Great Ormond Street Hospital in 1929 and have provided the hospital with revenues ever since. When the copyright first expired in 1987 (50 years after Barries death, as was the law at the time) UK government's Copyright, Designs and Patents Act of 1988 granted the hospital a perpetual right to collect royalties.

The second is the FILM released by Walt Disney Studios in 1953.

Walt Disney Corporation were licensed exclusive animation rights by Great Ormond Street Hospital in 1939. Disney subsequently own all imagery and merchandising rights as these were not around in 1939. As such all images from the 1953 film are still the property of Disney. 

So to summarise, if you are wondering if you can make an item with a character on it.......


Some things I have herd people say.....

"But I'm only using a quote not an image"

Yea, It's still a no.

"But I've drawn it myself" or "its only inspired by *insert character*"

Does it still look like the character? 

"Yes"

THEN NO!

"But I'm not selling it for a profit"

What? No! Just get out.


So there you have it. This is by no means a concise record of every piece of copyright law that you may come across, but I hope that it helps to put some things in perspective.

Remember, if in doubt, leave it out.

If you have any other questions regarding copyright law and how it can affect your business please contact us via the e-mail address on our "How we can help your business grow" page.





Hot Craft Trends for Easter 2017


So, What's going to be the next big thing? Anyone?

We all want to be ahead of the curve when it comes to what we create, but what's in store for Easter 2017? Here are some of the things that we think are going to be seeing a lot of this spring.


Pastel animals

Chicks, Bunnies? That's so 2016! Expect to see unusual animals in seasonal pastel shades this year.



http://sugarcoatedkawaii.tumblr.com/post/15578498835

aqua-filters.co.uk

http://flavorwire.com/352445/leila-jeffreys-gorgeous-cockatoo-portraiture/9

http://www.newyorker.com/culture/photo-booth/frames-from-fiction-tim-walkers-fantasies

Ombre eggs

Ok there's no getting away from eggs at Easter, Here they have been given a very modern facelift with an amazing ombre effect.



womansday.com
http://www.realsimple.com/holidays-entertaining/holidays/easter-egg-designs-unique/ombre-eggs?crlt.pid=camp.oOB7UfodjdRP

http://www.kaleyann.com/naturally-dyed-eggs-go-ombre/#_a5y_p=1437920


Easter nails

Like 10 tiny canvases on the ends of our crafty fingers, our nails are just crying out to be customised.
Give your nails a seasonal pick me up this spring with some of these fab tutorials,

ahbsessed.com

prakticideas.com

thegloss.com

Animal coats

OMG do you see how adorable these are?!?
Animal coats for kids are nothing new. but I expect they will become more mainstream as high-street retailers begin to stock them.

https://www.etsy.com/uk/listing/466916052/bunny-coat-easter-bunny-jacket-childrens?ga_order=most_relevant&ga_search_type=all&ga_view_type=gallery&ga_search_query=Easter&ref=sr_gallery_31

https://www.etsy.com/uk/listing/237960193/bear-jacket-bear-coat-boys-clothes-girls?ga_order=most_relevant&ga_search_type=all&ga_view_type=gallery&ga_search_query=animal coat&ref=sr_gallery_2

https://www.etsy.com/uk/listing/486402669/lion-mustard-baby-winter-coat-sz-1-free?ga_order=most_relevant&ga_search_type=all&ga_view_type=gallery&ga_search_query=animal coat&ref=sr_gallery_9



Kinder/Cadbury Egg Holders

https://www.etsy.com/uk/listing/499929560/easter-bunny-kinder-egg-holder

These super cute and totally customised egg holders are to Easter what Santa plates are to Christmas. No self respecting yummy mummy is going to let her darlings go without a personalised rabbit or chick this year. You can find blanks at; www.lasercraftshapes.co.uk/easter 




And my top trend for Crafts this year?



Not strictly speaking Easter I know, but I think we are going to be seeing cork used in crafts and home décor A-LOT this year.
Think oversized cork boards and entire cork walls! Cork coasters, notebooks and anything else for that matter.

https://uk.pinterest.com/bloglovin/
http://www.floormaker.co.uk/store/decorative-wall-panel/cork-wall-tile-black-pearl-600x300x3mm/cwtry1f001?gclid=Cj0KEQjwouW9BRCN0ozIifTI6_cBEiQAD9gNsfR-yai8VqW1bWZR4TXR0HXfaMuEMJ7ltZypjCT4AD8aAmCu8P8HAQ

notonthehighstreet.com


werejustdandy.blogspot.com
coolhunting.com

So there's my top trends for Easter this year.
Do you have any crafts planned with these elements? If so we would love to see them over on our Facebook page.
https://www.facebook.com/TodayWeCraft/


Friday 20 January 2017

Finance for crafters





There is an old saying; "Take care of the pennies and the pounds will take care of themselves"

In reality, the pounds take just as much care as the pennies to work effectively. But by ensuring that you have basic procedures in order to keep the pennies in the right places, you will find that the pound slot in quite nicely too.

In part 2 of my free e-book we will be delving into the historically complicated and sometimes confusing area of money management, specifically with regard to how it affects your craft business.


Become registered as self employed

If you are working for yourself then you are classed as a "sole trader" this means that you are the exclusive owner of the business and will keep 100% of the after tax profits (but you are also liable for company losses).

You can be both "employed" and "self employed" at the same time. For example if you work in a regular job 9-5 and run your own business in the evening.

Registering to be self employed is easy. Lust click the link below to get started.

https://www.gov.uk/set-up-sole-trader


Once you have been successfully registered as self employed then HMRC will send you a Unique Taxpayer Reference (UTF). You will need your UTF to be able to fill out your tax return online.

You will also require a Government Gateway account. You may have one of these already if you have ever needed to change the details on your drivers licence, or use any other government service online. If you are unsure as to whether you have a GG account, follow the link HERE.

Filling out your tax return online

Until April 2017 you do not need to fill out a tax return if your turnover is less than £2500 a year and you are employed. If this is the case you can just call HMRC and tell them your figures. They will then remove the amount of tax payable through PAYE.
If you are unsure as to whether this applies to you then HMRC have a handy (and short) questionnaire that you can find HERE.

https://www.gov.uk/check-if-you-need-a-tax-return

If you don't need to fill out a tax return then great! Sit back, chill out and be happy in the knowledge the HMRC has it covered. If you do (sorry about that) then read on.....

You can log in to your account  Here  (you will need to GG username and password)

The process of filling out your Self assessment tax return is quite straightforward. You can also save part way through your tax return and come back to it later.

For some great videos on how to fill out your tax return online just follow this link to the HMRC YouTube site.

National Insurance

National Insurance (NI) is what pays for the majority of our state benefits such as the pension, statutory maternity pay and bereavement benefits.

It is paid by everyone who is;
  • 16 or over
          And
  • Employed and earning over £155 a week
          Or
  • Self employed and making a profit of £5,965 a year or more.
If you are self employed then the amount you pay depends on your profit for the year.

Profits of over £5,965 a year = Class 2 = you pay £2.80 a week NI

Profits of over £8.060 a year = Class 4 = You pay 9% on profits between £8.060-£43,000
                                                                  You pay 2% on profits over £43,000

This is paid through your self assessment online.



Tax

The very word can strike fear into any crafter and small business owner. People spend their while lives trying to avoid it, accountancy firms make millions by managing it and people have been ruined buy not understanding it. But not you!

I spoke to HMRC to get some clarification regarding our tax requirements as crafters. You can find a concise article on this by clicking this link;

http://we-craft.blogspot.co.uk/2017/01/tax-for-crafters-what-you-need-to-know.html


Managing Cash Flow

Once upon a time the management of you business funds probably consisted of a small metal box, (usually black or red for some reason) that you would keep under the table at a craft fair or on a shelf at home. Nowadays with the majority of our business being done online, your money could be in many places at once, and keeping track of it is a tad more complicated than turning the key and opening the kitty.

By far the best and easiest way of managing your cash flow is to have a husband like mine who insists on taking care of everything because he's OCD about finances. Just kidding.

The best piece of advice I could give is to invest in some basic spreadsheet software.
Excel is great, and for basic finances suitable for your small craft business it's all you really need.

the most important figures are those that record the money coming in and where it has gone out as these you will need for your tax return. Everything else such as profit projections, margin calculators and invoice payment rates can be useful, but are by no means essential.

You can also usually find courses on how to use Excel at your local school, college or community centre.

If you don't have any courses running near you, then you can take this free online course from Home&Learn. Link Here


I hope you have found this article helpful. If you think it will be of use to others then please share it on Facebook and Twitter. You can also sign up to our mailing list (up the top on the right) to be the first to hear about new articles as they are released!

If you missed part 1 of our e-book then you can find it here;


http://we-craft.blogspot.co.uk/2017/01/how-to-build-successful-craft-business.html


Thursday 19 January 2017

Tax for Crafters - What you need to know, and how it will change in April 2017




Tax and copyright seem to be the 2 biggest sources of arguments between small craft business owners.

As the rules stand at the moment, you can earn up to £2500 from crafting without needing to fill out a tax return BUT IT IS STILL TAXABLE! you need to telephone HMRC and inform them of how much you have made over the year so they can adjust your tax free allowance. Not needing to fill out a tax return does not mean you don't need to pay tax.

This changes in April 2017.

Here is the information regarding the new tax break for "micro enterprise"

10. New tax allowances for money earned from the sharing economy

From April 2017, there will be two new tax-free £1,000 allowances – one for selling goods or providing services, and one income from property you own.
People who make up to £1,000 from occasional jobs – such as sharing power tools, providing a lift share or selling goods they have made – will no longer need to pay tax on that income.
In the same way, the first £1,000 of income from property – such as renting a driveway or loft storage – will be tax free.

source https://www.gov.uk/government/news/budget-2016-some-of-the-things-weve-announced 2017

We sought some clarification from HMRC as to what this actually means for crafters.

Here's what we found out;


1. This tax break only applies to "irregular, part time and hobby earnings".
This means that if you sell your old bike on ebay then this rule will cover you. If however your income is "regular and advertised" eg you have a FB page selling box frames or bunting, then this is classed as being self employed and you need to fill in a tax return even if your earnings are less than £1000 a year.

2. This is only a tax free allowance. If you are earning over £1000 from your craft business you will not be taxed on the first £1000 regardless of any other income stream you have.

So as of April 2017 the ONLY scenario where you do not need to fill out a tax return is if you are selling sporadically eg a craft de-stash, spare crafting equipment or a one off item you have made.

Effectively if you have a Facebook business page selling ANYTHING, you need to fill out a self assessment tax return.

However all is not lost! New guidance as to how this is going to be implemented has yet to be released. HMRC are keen to make their lives easier by removing a lot of sole traders from the self assessment process altogether. So we may find that the new £1000 rule means that you may only need to fill out a tax return if your income goes over £1000. As soon as I have more information from HMRC I will update this post.

Add your e-mail to our mailing list to be the first one to hear about how the new rules will affect your business!


















Wednesday 18 January 2017

How to build a Successful Craft Business from the Ground Up. Step 1 - Setting strong foundations with insurance




When running your own small crafting business it's important to be able to wear many hats. Marketing, PR, administration and accountancy are things that we "expect" to be able to do for ourselves. The benefits of this are huge, with the average small business in the US spending on average $7,600 a year on legal expenses alone, the advantage of a little knowhow can go a long way to improving your bottom line.

But where do you start? Say you've made an amazing cushion and sold it on Facebook, Great! Then before you know it you're making 30 a week to fulfil your FB and Etsy orders, you're supplying 5 local shops and you're starting to think that this could be a serious income stream for you.


Congratulations, You have a business!

But with great power comes great responsibility and It's important to ensure that your new business had strong foundations on which to build on.

In this series I will be going through some of the essential requirements that you will need to fulfil in order to protect your fledgling business. And great news, you can do them all yourself.


Step 1 - Setting strong foundations with insurance


This is quite possibly the most important foundation stone for your business.

Insurance is the one thing that YOU MUST HAVE! If something goes wrong it won't be a tap on the knuckles or a small fine. It will be a no holes barred legal frenzy in which a very powerful and very knowledgeable legal firm will be working exceptionally hard to take EVERYTHING FROM YOU. Would you seriously put everything you hold dear at risk for the sake of a 10 minute phone call and £50?

Insurance doesn't need to be scary or expensive. Taking out a simple policy will protect you and your business should anything unexpected happen.

So What sort of insurance do you need?

Here are the 3 main areas of cover that you should be looking for in a policy;

Public Liability Insurance ( PLI)

This protects your company against claims made by your customers for accidental injury and damage to property.
If you plan on selling at craft fairs then you will defiantly need PLI. Some events are happy with you having £2 million in PLI cover, but most council run markets require £5 million.

Some things I have heard people say;

"I don't need PLI because I don't do craft fairs"

PLI would cover you for any claim made as a result of someone injuring themselves due to your not showing "reasonable care". This can be at a craft fair, in your car, at your home/office or anywhere that you may have interaction with your customers.

"I don't need PLI because I work from home and don't see my customers"

You need PLI even if you work from home and never see your customers face to face. What if a customer comes to collect an item as a one off? They may trip on that loose paving slab outside your front door and makes a claim against you?

"PLI isn't a legal requirement"

It is true that your are not legally required to have PLI. But unless you have an emergency £2 million in your back pocket, I would get it anyway.

"I don't need PLI because I only sell to friends and family and they would never make a claim against me"

Lets say a family friend (who is a self employed plumber) buys an item off you. They then injure themselves on that item and can't work. They then make a claim to their OWN business insurance for their lost earnings. Their insurance company then claims against YOU for the lost earnings of their customer. It's not only individuals that can claim against you.

Products Insurance (PI)

This covers the cost of compensation should someone be injured as a result of a faulty or damaged product that is produced, designed or distributed by your business.



Some things I have heard people say;

"I don't need PI because my products are 'safe' "

Never underestimate the stupidity of the general public.
That small button in the centre of your hand stitched lavender bag, can be chewed off by a child in 10 seconds flat.
That bubblegum bath bomb that you made last week was fine for Mrs Miggins, but it gave her sister a horrible allergic reaction.

"I don't need PI because I don't make the items I sell"

You need PI even if you are only distributing items. If you buy Items from other suppliers and sell them on, you are just as liable.

"I don't need PI because I'm only designing items"

As above, even if you are only designing an item (eg a sewing pattern) you are still liable if the finished product develops a fault that results in an injury. The court will probably find in your favour if the injury was a result of the pattern not being followed correctly. But your still going to wish you had legal cover for the £5,000 solicitor fee.

Legal Cover (LC)

As you might guess, this covers you for legal fees that result if a claim is made. You do not necessarily need legal cover. You can represent yourself if an issue should arise, but for the sake of what could be just a couple of pounds if anything on your premium, I would recommend having it.

Like dental work and upholstery, the law is one of those things best left to the professionals.



The way this is paid works slightly differently depending who you are insured with. Some insurance companies expect you to cough up for the legal fees yourself and then re-imbrues you afterwards, and some pay direct. If in doubt, ask you insurance provider.

Insurance providers

There are many providers that can cover your craft business some like Direct line and AXA are large companies that do many kinds of insurance. You are more likely to get low cost and basic packages with these providers.

If your craft is something that is a little more niche them you may wish to consider using a specialised craft insurer. Craftcover.com provides insurance specifically tailored for the craft industry.

My experience

I have my insured through Direct Line. It costs me £55 a year and covers me for;
  • Public Liability (£2,000,000)
  • Product Liability (£2,000,000)
  • Stock away from home (£1,000)
  • Money away from home (£3,000)
  • Legal cover (£100,000)
  • Loss of earnings (£35,000)


Summary

If you don't have insurance, go get it. Like now.

If in doubt, get more cover than you think you need you will never regret having too much protection.



I hope you've found this article helpful Step 2 will cover the financial requirements for your business including accountancy, tax and cash flows.

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