Why do candle shops need insurance?
Your candle causes an injury
When you sell candles, your aim is to bring brightness to customers – the last thing you want is for someone to get hurt. But say you unintentionally purchased a defective candle from a supplier and sold it in your shop.
If a member of the public is injured as a result of this faulty product, they could take legal action against you. Products liability insurance can help to cover you if someone claims you have supplied them with a faulty product which has caused them injury or damaged their property.
Candle shop accident
When a customer visits your shop, they trip over a pillar candle display and cut their hand on broken glass from the display stand. Following a visit to hospital and several stitches, the customer is told to avoid using their hand for while – but they work as a manual labourer, so need to take time off.
When this person takes legal action to recover the lost earnings, public liability insurance could help to cover the costs of compensation claims made, as well as possible legal fees for court proceedings.
Flooding damages stock
As a small candle business that sells delicate and handmade products, you want to make sure your stock is safe. One morning, however, you arrive to find there has been an overnight flood in your stock room. Hundreds of candles are submerged in murky water and can’t be sold.
Thankfully, as part of the insurance for your candle shop, you have business contents cover to help meet the costs of replacing or repairing stock if it is lost, damaged, or stolen. It’s there to help when you need it most.
What insurance is available for candle shops?
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Insurance for candle makers: FAQs
Do you need a licence to sell candles?
You don’t need a licence to sell candles in the UK, but there are legal rules you’ll need to abide by. These include product safety guidelines – so it could be a good idea to ensure you understand what constitutes a ‘safe’ candle.
The General Product Safety Regulations 2005 defines a safe product as one that does not pose unnecessary risk when used in a standard or predictable way. The British Candlemakers Federation (external link) also notes that you might need to label products that contain hazardous materials.
Business insurance, tailored to include products liability cover, may provide confidence and backing in case of complaints about the candles you sell.
What insurance do I need to run a shop?
The only insurance required by law if you run a shop and employ people in that shop would be employers’ liability insurance. But beyond that you may want to consider other covers such as business contents insurance to cover your stock, or products liability to protect against claims you’ve sold a faulty product. Another potential consideration is public liability to protect against claims from members of the public that your work has left them injured or their property damaged.
Can you open a shop without insurance?
If you’re opening a shop by yourself and you don’t plan on employing anyone then you can open a shop without taking out insurance. But when starting a business you can face many unforeseen circumstances, so you may want to consider taking out insurance such as business contents or public and products liability.
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