Starting a Cupcake business from home - advice on Insurance

Emily_Storm

Hi All,

Please can someone advice me on which insurance company to approach for my business. I will be selling cupcakes from home. I have no idea which insurance I need. Any advice will be greatly appreciated.

Thanks

Emily

Savvy_Sue

Not sure what the risks are with cupcakes, apart from eating too many ...

However, you need Environmental Health to check your kitchen out, I think, and if you are employing anyone to work for you then you need Employer's Liability.

Also you need to tell your landlord / mortgage provider that you are starting a business from home, and your household insurer. You may find in all cases that conditions are imposed, although unless you expect to have a lot of customers coming the house to collect cakes a landlord shouldn't have a problem with this.

Sorry if you knew all that, and sorry I can't suggest where to get whatever insurance you might need. Businesslink are usually very helpful to new businesses.

incensicle

I found this company, craftinsurancedotcodotuk. I dont know if they would suit you but they were an absolute life saver for me. I thought insurance was going to be a complete nightmare.
Hope this helps

laurajayne

I run a cake decorating business from home - I also supply cupcakes.

I can't help with what you need to tell your landlord/mortgage etc, but I can help with the others.

First and foremost, you will need to contact your local Environmental Health department, who will come and inspect your premises. I'd always recommend doing this first, cos if they say no, you're not out of pocket on anything else. It's free to be inspected, so it's not a huge problem. You may however find you need to have a double sink fitted for example. They will probably also want you to complete your Food Hygiene Certificate before trading. Depending on where you get this from, it can be anything from £25-£100.

Next, I'd recommend joining the British Sugarcraft Guild (google it ). For £20 a year, you become a member....but more importantly can take advantage of their public liabilty insurance for £13.50 a year. You can add extras on for further payments, such as cash cover.

After that you'll need business use on your car if you are going to deliver/transport the cupcakes anywhere.

It's not easy - but best of luck!

edindie

It also might be a good idea to see what costs you can write off against the profits you make for tax purposes.

I know you can expense part of your household bills which you will use because of your business (Electric, heating, phone etc). Plus you should investigate getting registered for VAT so you can claim it back from your input costs (although this does mean you'll have to charge VAT on the output though!).

r.mac_2

laurajayne wrote: »

I run a cake decorating business from home - I also supply cupcakes.

I can't help with what you need to tell your landlord/mortgage etc, but I can help with the others.

First and foremost, you will need to contact your local Environmental Health department, who will come and inspect your premises. I'd always recommend doing this first, cos if they say no, you're not out of pocket on anything else. It's free to be inspected, so it's not a huge problem. You may however find you need to have a double sink fitted for example. They will probably also want you to complete your Food Hygiene Certificate before trading. Depending on where you get this from, it can be anything from £25-£100.

Next, I'd recommend joining the British Sugarcraft Guild (google it ). For £20 a year, you become a member....but more importantly can take advantage of their public liabilty insurance for £13.50 a year. You can add extras on for further payments, such as cash cover.

After that you'll need business use on your car if you are going to deliver/transport the cupcakes anywhere.

It's not easy - but best of luck!

Hi laura, Hope you don't mind me asking, but what type of things are Environmental health looking for when they inspect your home kitchen if you want to use it for baking cakes to sell?

Thanks for the information regarding insurance through the sugar craft guild - that's a great insider tip!

Do you have any other tips or advice you wish you had known before starting?

thanks

vicshippers

Presumably they will want to know that your kitchen is clean, hygienic and that you know how to store/mark food safely.

Public liability insurance is a big one - laurajayne was right.

On a side note - make sure you document your cupcakes on Flickr and start local website, even if it's just information based rather than a method to sell through.

r.mac_2

Thank you vikshippers.

laurajayne

r.mac wrote: »

Hi laura, Hope you don't mind me asking, but what type of things are Environmental health looking for when they inspect your home kitchen if you want to use it for baking cakes to sell?

Thanks for the information regarding insurance through the sugar craft guild - that's a great insider tip!

Do you have any other tips or advice you wish you had known before starting?

thanks

No problem - sorry it took me so long to realise you replied!

To be honest, it can vary wildly from area to area. Mine was very easy, showing that the kitchen was clean, I have a seperate cupboard for my business ingredients, and I also have a child gate to the kitchen to stop anyone coming in when I'm cooking.

I had to do my food safety course, and we had an hour chat about what I do in certain situations, what I use/how I clean, and how to avoid contamination. We also talked about my reciepies, my advice is to not use cream in any way shape or form, as it must be refridgerated, and you also then become a medium risk business.

I do know of some people that have had to have double sinks installed before they'll get the go ahead....it really depends on the EHO I'm afraid. I found they were great if I emailed or called with any questions.

You'll also need the 'Safer Food, Better Business' pack from the FSA. (Comes up on google). It's completely free, so no worries there. Your EHO will want you to have it first before they visit. You must register with your Environmental Health before you start trading (28 days beforehand I believe!)

The Guild membership and insurance is fab, it's for turnovers of less that £5k I believe, but it's a great starter insurance.

As for what I've learnt......lots

If you pipe swirls....have about 4 tips....the buttercream melts otherwise

Pricing is the hardest thing of all to do. Don't forget the liners, boxes, piping bags, gas/electric....I've got my mother, the excel genius to make me a spreadsheet that has EVERYTHING on it. (which she now sells to other sugarcrafters lol) I was drastically undercharging until I sat and worked it out.

Not everyone can afford me. That's ok....don't be disheartened by those that say no thanks.

Spend time working out where you can get the best ingredients, it may mean you travel more, but it adds up. I buy chocolate and sugar in bulk from Costco; but butter and flour from Morrisons.

Spend the money on proper cupcake boxes/cake boxes - it really makes a difference to your presentation. And they don't bash together.
It's hard work, you'll never make millions I'm afraid, but its good fun!

As for advertising, my best investment (other than my website - I don't want to break any forum rules, so PM me if you'd like a nose....it's a work in progress mind lol), was to do my local village fete. I sold over 300 cuppies and got a few orders from it from an investment of £30 for the table. Take friends, lots of handwash, and flynets

Well, that should keep you going lol, if I think of anything else, I'll let you know x

borders_dude

Savvy_Sue wrote: »

Sorry if you knew all that, and sorry I can't suggest where to get whatever insurance you might need. Businesslink are usually very helpful to new businesses.

Unless you live in Scotland, in which case dont get in touch with them because they will tell you to take a hike.

r.mac_2

Laura - thanks for your reply. I'm thinking of turning a hobby into a cottage industry but want to make sure I've researched it all well first before getting my hopes up/outlaying money etc. Your advice is really welcomed.

I've requested the pack you have recommended and will get in touch with the EHO local to me. However, I think first I will work on perfecting a few recipes and pull a business plan together as well as thinking out how in practice it would work - that way I'll be able to answer any questions they may have!

thanks again x