I can only see that one ending in tears.
Sold as seen is normally only protecting yourself from a return if the item don't operate as originally intended or don't look at expected in areas they failed to inspect and wouldn't protect anyone from a fault in the items manufacturing resulting in the end user becoming injured. The term no liability accepted I can see being laughed at in court when little Johny the 3 year old chopped his little finger off and the court side with the mother and the judge utters the sentence "to make such a statement in your sales contract is admitting you know your items are not up to standard, your a discredit to other pen manufactures, I hear by fine you £***,***".
I would imagination no liability accepted would more be for people selling items that hasn't been manufactured by themselves or they do not own copyright etc. This term as a sales condition certainly wouldn't protect the manufacture (craftsman) if there item caused injury or death to the end user if became under normally recommended usage. You could of cause use the term to protect yourself from things like for eg ink leaking onto expensive carpets etc but really that liability would lye with the manufacture of the pen workings anyhow.
It just like when an eBay user puts in there returns policy, returns only accepted if dead on arrival. Wrong they just don't know the law as under the distance selling act you can return any item for any reason (excluding damage of no fault of the seller or currier, also some items are excluded for hygiene reasons like earrings if you have unsealed them and underwear if tried on) and with out giving a reason for upto 14 days after purchase. Infact I have just brought something off someone that stated Returns only accepted if DOA. How many people may know what DOA means??? (non of this is a dig paulntl)
Insurance is always a good thing and £71 a year is excellent. However im with others, if its two pens a month and its not a business then really do you need to take it this far?? Either way you are still liable as you made and sold the item.
Craft fairs like any market are a public event, you and your products are mixing with the general public and public liability is required by law, this may however have been sorted by the event organiser or covered in the grounds insurance anyway. If not the event organiser should at least alert you to this fact so you can get cover, at the same time its also there job to ensure you prove to them before trading that you have cover so liability is pasted. As most craft fairs are on public grounds and small scale insurance is normally covered in your stall fee, after all if someone slips on your product thats on the ground its the responsibility of the market staff to ensure there grounds are safe and they will be liable. This is only true for markets where you are not renting a "pitch" ie your not renting a set size of "pitch/plot". This paragraph is only about public and there safety, non of this paragraph is regarding injury or death to end users that purchase your made items as a result of normal recommended/intended use.
HTH
