Our insurance is obtained through the National Sugar Art Association. The actual policy is rather long and in legal jargon; however, in brief we are covered for:
- Public liability for all our meetings and events. Members attend our meetings and events at their own risk, as outlined in our constitution.
Product liability for any cakes that we make for club events, and for members making cakes in their own homes for payment, but only on an amateur basis not as a business. This product liability does not cover fresh cream products. There is an excess which will be passed on to the individual member(s) responsible for any claim; again see our constitution.
We frequently get enquiries from members about interpretation of our insurance policy. In order to (hopefully ) clarify this we include a copy of the letter that we sent to our new insurers explaining sugarcraft and how our clubs work, and also (below) a ‘lay’ summary of the parts of the insurance that are most queried. We have sent this also to the brokers to confirm that our ‘lay’ explanations are accurate
The Public Liability section of the National SugarArt Association policy covers the Association, its Clubs and Club members for Association/Club meetings, demonstrations, workshops, exhibitions, outings and committee meetings. Public Liability is rather like the third party part of your car insurance in that it covers for damage caused by any of us to someone else or their property.
The Product Liability element of the policy covers items produced by the Association/Clubs/Club members – in our case this is usually cakes or sugarcraft items. This includes cakes made for sale or consumption at Association/Club events where the aim is to raise funds for the Association/Club (almost all club activities are for fund raising if you think about it). If you wish to support a charity the best way is to raise the funds for your club and then make a donation from club funds. The policy also covers individual club members for making special occasion cakes in their own homes (for which they may or may not be paid) on a STRICTLY AMATEUR basis, e.g. cakes for family, friends and friends of friends. We recommend that you do not use fresh cream products for cakes that you use at club events or sell to customers as continuous refrigeration is necessary. Our Insurance DOES NOT cover if a member is making a lot of cakes for sale, (a limit of 4 multi tier or 12 single tier cakes a year is an acceptable amateur quantity), or sells cakes /sugarcraft items on a stall or through a shop or advertises for commissions in any way – THAT IS RUNNING A BUSINESS, and a separate individual insurance policy is required.
We are currently discussing with our new brokers a policy for members making cakes as a business; we will let you know the outcome.
(Note – it might also be worth checking with your household insurance to see if that policy can be extended as this might be a cheaper option.)
If you would like to see the full insurance document then contact us.