3 Types of Insurance You'll Need for Your New Craft Business

1. Public and Products Liability

If you're opening a craft business, Public and Product Liability insurance is perhaps the most vital type of insurance to consider.  Product Liability insurance is incredibly important because it protects you from legal fees related to your products, due to unexpected problems or defects.

For example, if a bath bomb arrived spoiled or caused a bad reaction, this insurance may cover that.  If someone was injured by a broken part on an ornament you made, it may be covered by Product Liability insurance.

Public Liability insurance is more relevant if you are opening a physical shop, as it will protect you from costs if someone has an accident, such as a fall, in your shop.  However, it can also be relevant to those using their home as a business premise, so speak with your insurance broker who will provide the right advice.

2. Electronic Equipment Insurance

Electronic equipment insurance may be another must-have for your small craft business, as you will likely use at least one electronic gadget. This type of insurance will protect you from the replacement and repair costs of your electronics, as well as costs associated with losing data; you might use a computer to take orders, print labels, and make designs, meaning this machine will be essential to your operation.

However, there are other electronic gadgets you may use to manufacture your products, such as an electronic die cutter or sewing machine; an electronic die cutter can save a lot of cutting time and make your cards look more consistent.  However, if it breaks, this situation could negatively affect your business.

Ensure you know what your policy includes and which of your gadgets and devices are included.

3. Business Interruption Insurance

The world is an unpredictable place, and Business Interruption insurance will prevent you from losing money during an unexpected event.  Business Interruption insurance provides compensation for a loss of income due to a fire, flood or storm at your premise.  It may also cover situations where the public can't get to your shop, or damage further up the supply chain.

This insurance applies to all businesses, but it is particularly relevant to craft businesses, as a flood or fire at your shop could destroy a lot of flammable products. This could cause you to lose income for your business, not to mention valuable time to get it up and running again.  

These three types of insurance are available to protect yourself and your business from legal costs due to customer injuries, natural disasters, and broken machines and gadgets.  However, there are many other types of insurance that might be recommended for your business, so speak to an insurance broker who will review your business risks and design the complete insurance solution for your business.

At Westralian Insurance , our team has experience in offering all three types of insurance mentioned above, as well as other essential business insurance policies, so call our office today!