From what I have already learned, you can make items at home on a hobby basis without making the house insurance policy invalid. I am in the process of starting up a furnishings business, although so far I have not registered the business etc and I have not sold anything yet. I want to buy and use a laser engraving machine (the machine would cost about £14,000 to buy) at home in my garage because it would save me having to pay out lots of money on renting out an industrial unit. What I need to know is what exactly are you allowed to do on a hobby basis without affecting the insurance cover. The questions I have are: (1) Am I allowed to develop some items which I might sell at a later date when I finally officially start up the business? (2) Can you make and sell anything as long as it is not under a company name? (3) Are you not allowed to make and sell a single item under a company name without making the insurance invalid.
One final question. (4) The laser engraving machine would be quite a large and expensive machine. If I made an insurance claim because for instance the machine caused a fire that damaged other items within the property, would the insurance company question the fact that I was saying I was using it on just a hobby basis. In other words does the size and cost of equipment used at home matter at all?
What if I made a whole load of items and then stored them somewhere else, for instance in a storage unit. Then at a later date I started the business and sold them all. Would that be OK?