Advice About Public Liability Insurance for Stall?

purple.sarah

I'm interested in selling Wikaniko products via stalls at fairs. I'm trying to get public liability insurance and getting a bit confused Would the insurance cover the business or just me? My mum has offered to help me with the stalls sometimes. She wouldn't want any payment so she wouldn't be an employee, she wouldn't be involved enough to be a partner in the business. Is this allowed or does anyone who helps out, even casually, have to be on the insurance policy?

Also is there any other insurance or certification I need?

paddyrg

When you use the words partner, business and employee, exactly what is the company formation? The case is straightforward for a limited company (it buys insurance, it is covered) but you should check with your insurance broker any limitations of cover for if you but as a sole trader (not company). If that is the setup that you're a sole trader and a friend helps, that's not so unusual that it can't be covered, just make sure. If your mum is a partner as you suggest, that's different, and your partnership itself should buy the policy.

purple.sarah

That's the problem, I'm not sure what the company formation should be. I would just be buying Wikaniko products, such as soap, wholesale and selling them on a stall. I want to keep it as simple and affordable as possible, so setting up as a limited company seems too complicated. I was thinking of setting up as a sole trader but I wasn't sure if anyone would be able to help on the stall if I was insured as a sole trader or if they would need to also be insured as a partner or employee.

I've now rung an insurance company and they seem to think my mum would need to be listed as a partner or employee on the policy to be able to help me. The good news is this doesn't cost more. However I'm not sure if it would affect her tax to be listed as a partner or employee in a business but not earning any income from it. Wouldn't they think there was something dodgy going on?

paddyrg

Just looked the company up - obviously it's down to you what you do, but it does have a lot of hallmarks of being an MLM - primarily

5) You build branches in other areas by introducing people to the opportunity, and you make an override on what they do,
by helping them to build a great future for themselves.

No judgement on this one, but make sure you go into this with your eyes open and maybe search thoroughly to see if anyone has any experiences you can learn from. MLM's aren't inherently bad, but a lot of bad companies are set up as MLM's. Make sure for yourself that you're not buying and selling goods at a higher price than other markets (eg if they sell branded products, check out Amazon etc to see what the market price is for the item as opposed to assuming you'll make sales at the prices you're given). If it's all own-brand products, how do those products stack up against market leaders for actual quality and price. For instance AmWay products are expensive but tests show some items may not be on a technical par with market leaders they outprice.

I'm hedging my words here as I don't know this company, just want to make sure you've done your research as with any new business

earthstorm

OP can i suggest you check out G Imber who specialise in insurance for markets/craft fairs.

http://www.gmimberltd.com/CraftsInsure%20Starter.html

Oddjob

Your best bet by far would be to join the National Market Traders Federation, http://www.nmtf.co.uk/index.php?id_cpg=1 they provide public liability insurance and employee insurance - you would have to ask about your mum but I think she would be covered as family. There is a live chat facility on the website. Don't forget your car would need to be covered for business use as if there is anything in it for sale it could invalidate ordinary car insurance. If you are a member of the NMTF and take out insurance with Marketline, you get a discount on your NMTF membership for any insurances you take out. HTH