Do You Need Insurance to Sell Wax Melts in the UK

Do You Need Insurance to Sell Wax Melts in the UK?

Insurance is one of those expenses that can feel frustrating when you are starting a wax melt business.

You may not have made a single sale yet, but you are already paying for wax, fragrance oils, moulds, packaging, labels, a website and everything else that seems to appear once you begin turning a hobby into a proper business.

It is understandable to wonder whether insurance is something you really need now or something you can arrange later, once the business begins making money.

The straightforward answer is that most sole traders without employees are not legally required to hold general business insurance simply because they sell wax melts. However, that does not mean operating without insurance is a sensible risk.

Wax melts are physical products that customers heat inside their homes. They contain fragrance ingredients that may be hazardous or cause allergic reactions, and they are used with electrical warmers or burners containing naked flames.

Even when you have made, tested and labelled your products correctly, things can still go wrong.

For that reason, I would not personally begin selling wax melts without suitable product liability insurance.

Is insurance legally required to sell wax melts?

There is no single insurance policy that every self-employed wax melt maker is automatically legally required to hold.

If you work alone and have no employees, product liability and public liability insurance are generally not compulsory under UK law. However, employers’ liability insurance is normally a legal requirement once a business employs staff, subject to limited exemptions.

Markets, craft fairs, wholesale customers, landlords and other organisations may also make insurance a contractual requirement before they agree to work with you.

In other words, insurance may not always be required by law, but it can still be required by the businesses, venues or platforms you want to sell through.

More importantly, not being legally required to buy insurance does not remove your responsibility for the products you put into customers’ homes.

Wax melt and candlemaking insurers generally recommend product liability cover, while many markets and craft events require sellers to provide evidence of public liability insurance before they are allowed to trade.

What insurance does a wax melt business need?

The cover you need will depend on how your business operates.

A maker selling online from home will have different risks from somebody attending markets every weekend, employing assistants, supplying shops or running workshops.

The main types of insurance to consider are:

  • product liability insurance;

  • public liability insurance;

  • employers’ liability insurance;

  • stock and equipment cover;

  • business interruption cover;

  • home business cover;

  • cyber or online retail cover.

You may not need every type of cover immediately. Product liability insurance is the one I would consider essential from the point at which you begin selling products.

What is product liability insurance?

Product liability insurance is designed to protect your business if a product you make or sell causes injury, illness or damage to someone’s property.

For a wax melt business, a claim could potentially arise if a customer alleges that:

  • a product caused an allergic reaction;

  • wax damaged furniture, flooring or another surface;

  • incorrect safety information contributed to an accident;

  • a product was contaminated;

  • a packaging or labelling error caused harm;

  • the product contributed to a fire or other property damage.

That does not automatically mean the business would be responsible. Customers can misuse products, ignore instructions or use unsuitable burners.

The problem is that defending an allegation can still cost money, even when you believe you did everything correctly.

Product liability insurance may help cover legal fees, compensation and other costs associated with an insured claim, subject to the terms and exclusions of your policy.

You need to check that the policy specifically covers the products you make. Do not assume that a generic craft policy automatically includes wax melts, candles, reed diffusers, room sprays or every other home fragrance product.

Tell the insurer exactly what you make and sell.

If you later expand from wax melts into candles, diffusers, sprays, carpet fresheners or other products, contact the insurer and make sure the additional products are covered.

What is public liability insurance?

Public liability insurance covers claims arising from injury or property damage connected to your business activities rather than directly caused by the product itself.

This becomes particularly important if you:

  • sell at markets or craft fairs;

  • attend exhibitions;

  • allow customers or suppliers into your workspace;

  • deliver products to business premises;

  • run wax melt or candlemaking workshops;

  • demonstrate products in person;

  • operate a physical shop or studio.

For example, a customer could trip over a box beside your market stall or spill something while attending a workshop.

Public liability insurance is not generally a legal requirement, but event organisers frequently ask traders to provide proof of cover. Some specify a minimum level, often running into several million pounds.

Check the organiser’s requirements before paying for a stall because you may need to provide your insurance certificate as part of the application.

What is employers’ liability insurance?

Employers’ liability insurance is different because it is normally required by law if you employ people.

It is intended to cover claims from employees who become ill or injured because of their work.

Do not assume somebody does not count because they are:

  • part-time;

  • temporary;

  • helping during a busy season;

  • a friend;

  • a family member;

  • paid casually;

  • working from your home.

The rules depend on the nature of the working relationship, and exemptions are limited. Check your position with an insurer or another suitably qualified professional before allowing anyone to work for the business.

This is particularly relevant as the business grows. You may start alone but later need help pouring products, packing Christmas orders or attending events.

Insurance should be reviewed when the way you operate changes, not just renewed automatically each year.

Does insurance cover mistakes with CLP labels?

You should never treat insurance as a replacement for compliance.

Wax melts containing fragrance ingredients may fall within the Classification, Labelling and Packaging rules. The classification and label must be based on the finished mixture and the concentration used, rather than simply copying information from the bottle of concentrated fragrance oil.

Depending on the classification, the product label may need elements such as:

  • the product identifier;

  • your business name and contact details;

  • hazard pictograms;

  • a signal word;

  • hazard statements;

  • precautionary statements;

  • relevant supplemental information.

The exact label will vary between fragrances and formulas. You must use the correct information for the finished product you are selling.

The Health and Safety Executive provides the main official guidance for businesses supplying chemical mixtures in Great Britain. Northern Ireland follows a different regulatory route, so businesses selling there should check the applicable HSE Northern Ireland guidance as well.

An insurer may ask about your manufacturing, testing and compliance processes when you apply or make a claim. A policy may contain exclusions or conditions relating to incorrect labels, regulatory breaches, inadequate records or products that were not declared to the insurer.

Always read the policy rather than assuming that every possible mistake is covered.

Do you need insurance if you only sell online?

Selling through a website, Etsy, Facebook or another online platform does not remove the risk created by the product.

The customer still receives and uses the wax melt inside their home.

Product liability insurance is therefore relevant whether you sell:

  • through Shopify;

  • through Etsy;

  • through social media;

  • at markets;

  • through wholesale accounts;

  • to friends and family;

  • through a physical shop.

A small number of orders does not necessarily mean a small potential claim.

Even when your business is new, the value of a customer’s home and belongings can be substantial. That is why waiting until you are “big enough” to need insurance is the wrong way to look at it.

Insurance is there because a business may not have enough money to absorb a serious legal claim on its own.

Does selling to friends and family count?

Yes.

Once you supply a product to another person, the fact that you know them does not make the product risk disappear.

Charging only enough to cover your ingredients does not necessarily mean you can ignore your responsibilities either. If you are regularly making, advertising or supplying products, you should treat what you are doing as a business activity and get proper advice.

It is much safer to decide that you are still testing and not yet selling than to take money while describing the business as “just a hobby.”

Before taking orders, make sure you have worked through:

  • insurance;

  • testing;

  • CLP classification and labels;

  • product safety information;

  • batch records;

  • traceability;

  • pricing;

  • tax and business registration;

  • packaging;

  • customer terms.

My Start Here Checklist will help you organise the early stages without trying to remember everything at once.

Will home insurance cover a wax melt business?

Do not assume that ordinary home insurance will cover business activities.

Running a business from home can affect your buildings or contents insurance. Your insurer may need to know that you store wax, fragrance oils, packaging, finished stock or equipment at the property.

You should tell your home insurer:

  • that you operate a business from the property;

  • what products you make;

  • what materials you store;

  • whether you use specialist heating equipment;

  • whether anyone works with you;

  • whether customers or couriers visit;

  • how much stock and equipment is kept there.

Failing to disclose business activity could potentially affect your home insurance cover.

A specialist business policy may also offer stock, equipment or business interruption cover that your ordinary home insurance does not provide.

What should you tell the insurer?

Be completely honest and specific when requesting a quotation.

Tell the insurer:

  • that you manufacture wax melts;

  • which types of wax you use;

  • that your products contain fragrance oils;

  • whether you also make candles, sprays, diffusers or powders;

  • where you manufacture;

  • where and how you sell;

  • your estimated annual turnover;

  • whether you export;

  • whether you sell wholesale;

  • whether you attend markets;

  • whether you employ anyone;

  • whether you run workshops;

  • whether you store stock at home.

If you sell outside the UK, say so. Policies may restrict which countries are covered, and sales to the United States or Canada are often treated differently because of the potential legal exposure.

Do not choose the cheapest policy without checking what it actually covers.

A low price is not useful if your main products, selling territories or business activities are excluded.

What records should you keep?

Good records matter even when you are insured.

If a customer reports a problem months after buying a wax melt, you need to be able to identify what was made, when it was made and which ingredients were used.

Your records should include:

  • supplier invoices;

  • wax and fragrance oil batch numbers;

  • safety data sheets;

  • IFRA documents where applicable;

  • CLP calculations or supplier templates;

  • your exact formulas;

  • test records;

  • production dates;

  • finished product batch numbers;

  • copies of product labels;

  • customer order details;

  • details of complaints or incidents;

  • photographs where useful.

Keep the version of the label that was actually used for each batch. Fragrance documents can change, and having only the latest file may not prove what information was available when an older product was made.

Records also make it easier to investigate a complaint, isolate affected stock or organise a product recall if one is ever required.

How much does wax melt business insurance cost?

There is no single standard price.

The cost will depend on factors such as:

  • your turnover;

  • your products;

  • your level of cover;

  • whether you sell online or in person;

  • whether you export;

  • whether you employ anyone;

  • whether you manufacture from home;

  • whether you need stock and equipment cover;

  • your claims history;

  • the insurer and policy terms.

Obtain quotations based on your real business rather than using somebody else’s premium as your budget.

Insurance is one of the costs that should be included when calculating your overheads and setting your prices.

If your prices only cover wax, fragrance oil and packaging, insurance will quietly come out of the money you thought was profit.

Read How to Price Wax Melts for Profit – Not Just Sales for a proper breakdown of materials, labour, fees, overheads and profit.

You can also use the Pricing and Profit Calculator in The Wax Room Resource Library.

When should you arrange insurance?

Arrange suitable cover before you begin selling.

Do not wait until:

  • your website launches;

  • you attend your first market;

  • a shop agrees to stock your products;

  • you receive a complaint;

  • you become busy;

  • you can comfortably afford it.

Insurance should be part of your launch costs.

If you cannot yet afford to make, test, label and insure the product properly, you are not ready to sell it.

That may sound blunt, but launching before the basics are in place can create much more expensive problems later.

My guide to How Much It Costs to Start a Wax Melt Business will help you build a more realistic starting budget.

My honest view on wax melt insurance

I arranged insurance when I began making wax melts because I wanted to build a genuine business, not simply make a few products and hope nothing went wrong.

Insurance does not make a product automatically safe or compliant. It does not replace correct labels, testing, record-keeping or responsible manufacturing.

It is one layer of protection within a much bigger system.

That system should include:

  • suitable ingredients;

  • dependable suppliers;

  • accurate formulas;

  • thorough product testing;

  • compliant labels;

  • safety instructions;

  • traceable batches;

  • good records;

  • appropriate insurance;

  • a clear process for handling complaints.

When you are starting, it is tempting to focus on the enjoyable parts: choosing fragrances, making labels, photographing products and setting up social media.

The less exciting foundations matter more.

A beautiful Instagram page cannot protect you from a product liability claim. A professional logo cannot correct an inaccurate CLP label. A busy launch cannot compensate for products that were not properly tested.

Build the business in the right order.

Before you start selling

Before your first product goes live, check that you have:

  • explained your full product range to the insurer;

  • confirmed that manufacturing is covered;

  • checked your sales channels and territories;

  • arranged product liability insurance;

  • arranged public liability cover if needed;

  • notified your home insurer;

  • checked whether anyone helping you creates employment obligations;

  • stored your insurance documents somewhere accessible;

  • recorded the renewal date;

  • created a system for testing and batch records;

  • reviewed your cover whenever the business changes.

Insurance is not the most exciting purchase you will make for your wax melt business.

It may, however, be one of the most important.

Continue building your wax melt business

Starting a wax melt business involves much more than learning how to melt wax and add fragrance.

You need to understand your products, costs, responsibilities, customers and the kind of business you are trying to create.

These free guides will help you take the next steps:

For the full, honest guide to starting and growing a wax melt and home fragrance business, explore The Wax Room: The Honest Guide to Building a Successful Wax Melt & Home Fragrance Business.

Important note

This article provides general information based on my experience of running a UK wax melt and home fragrance business. It is not legal, insurance or regulatory advice.

Requirements can change and may vary according to your products, business structure, location and where you sell. Always check your position with your insurer and the relevant official or professional sources before selling.

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