Part 6 – Get InsuredPosted 08/05/2014 by Rebecca Cannon
You’ll need product liability insurance. This is essential, because you are responsible for any injuries or illness that may be caused by your product. You can be sued by anyone who suffers as a result of contamination in your baking – up to three years after purchase. You could also be closed, investigated or prosecuted by Environmental Health. Product liability insurance protects you against potential law suits.
Public liability protects your business against other claims such as injury (even something as simple as a customer tripping on a display stand). It’s applicable if customers are on your premises or you attend events. You can get quotes for both types online, by providing information about your business type, postcode, and turnover. Confused.com is a good place to start your search for both product and public liabilty insurance.
You must also be seen to be actively ensuring that your products are safe. Your key responsibilities, according to Trading Standards, are:
- Providing warning and information about possible risks
- Monitoring safety during production and
- Taking action if you discover a problem
Inform your home insurance provider that you are working from home. Read your mortgage or tenancy terms to make sure that they will permit you to work from home. Your lender or landlord may allow you (usually as long as the business only takes up 30-40% of space) or they may put you onto commercial rates but either way, it’s vital to be open with them or you risk breaking your mortgage terms. Your council tax may change, too. The Valuation Office Authority says:
“If you work at or from home, the part of the property used for work may be liable to business rates (also known as non-domestic rates) whilst the remainder of the property will continue to be liable to council tax (although an alteration may be made to its banding). To decide whether or not part of your property should be liable to business rates there are a number of things we have to consider, including the extent and frequency of the non-domestic (business) use of the room (or rooms) and any modifications made to the property to accommodate that use. Each case is considered on its own merits, and normally we will visit your property to check the facts before an assessment is made for non-domestic rates.”
Read on Part 7… ‘Find a Food Hygiene Course‘