Insurance for Chandlers & Soapers, etc

Just as an FYI for folks out there that may have trouble locating an insurance program in the USA ...

For the last year I had my insurance through the Indie Beauty Network and the insurance program they offered - same one as the Handmade Soap Guild uses. Trick is, you had to be a member of either organization to get the insurance. At the time it was quick and easy, which was what I wanted.

It turns out that the IBN membership didn't do much for me beyond giving me access to insurance, so I went looking for another supplier - no point in paying the membership fees on top of the insurance costs.

I'm happy to announce that American National Insurance will cover chandlers, soapers, and other handmade crafters. I got my policy here in Alabama for $350/yr with more coverage than the IBN policy, which cost me around $500/yr (membership included). American National has agents in all 50 states so you should be able to find one in your area. If you're in Alabama, Mississippi, or Tennessee, I can put you in touch with my agent, since she now understands the situation Just contact me privately if you want her info.

This is great news! I still carry insurance (even though it costs more than the sales alone), and frankly, I don't use IBN. Some features are nice, but as I've said before, I don't actively promote my product right now as it's mostly a hobby with a sale or two tossed in.

Thanks for the info. I did a search and found out there is an agent 1 mile from my house.

Talked to my agent and got a website: http://www.anpac.com/

can you PM your insurance agents info. I called one local to my area, and he said they don't cover manufacturers.

I found agents in our little town also!

Could you please PM me the specifics to ask about also? It helps so much when folks say "we don't offer that coverage" to be able to say, "yes, you do - it's called _________."

TIA for your help and for this post!

I found agents in our little town also!

Could you please PM me the specifics to ask about also? It helps so much when folks say "we don't offer that coverage" to be able to say, "yes, you do - it's called _________."

TIA for your help and for this post!

can you post that so that we can know too? I just sent an email to a local agent and i am waiting to hear back.

I totally agree on the IBN, it really didn't do much for me either.

I don't know that it has a particular name. I just asked her for commercial (business) insurance that included product liability. Best I can do is suggest you contact my agent. Her name is Kim Oliver and you can find her info here:

http://www.anpac.com/agent_loc/Results.aspx?AL_Criteria=35758&AL_SearchBy=ZIP&AL_Criteria2=#

I called every insurance agent in the phonebook and found independent insurance agent companies were the ones that accepted candlemakers and soapmakers. Also found one that even took food manufacturers, which is extremely difficult to find. That might help those that are seeking an agent. Mine even covers my workspace which is part of my home for $500. yr. which includes, supplies, business equipment, candles, soaps and product liability for $1 million.

I found some agents listed (through that website) in my area, too.

...Their photos are a bit intimidating, though. The fellas look like politicians that sell used cars in their spare time.

Thanks so much for posting this info, racolvin!

I was very excited to find this post since I've been looking for product liability insurance in Alabama for several years and haven't been able to find it for less than $1,000/year.

So I contacted the agent shown here and, after a few e-mails back and forth in which I thought everything was going to work out great, she said

"This insurance will not cover if a person is careless with their candle after they have bought it from you. If a person burns down their own home then they have to deal with it thru their insurance not your insurance."

So since that's what I was looking for in product liability insurance, I guess the search starts again!

No matter what insurance you have- if your product was not at fault, their insurance will have to cover the damages.

If your candle explodes, burns and causes other damages, I would safley assume that your company would be at fault and there for your insurance would have to cover the damages.

No matter what insurance you have- if your product was not at fault, their insurance will have to cover the damages.

Yes, but if you have general business with product liability your insurance will pay for the expenses involved with determining the cause or the "fault". All it takes is some law suit hungry person to accuse a manufacturer of negligence - that is why you have coverage to provide the defense or money for the legal representation.

I went back to the agent for clarification and this is our latest exchange:

Me—I know a customer could possibly sue a candle-maker for a fire which was actually caused by their own negligence. I’ve hear that the chandler would probably win the lawsuit but the product liability insurance would pay for legal representation in this case. Would that be true of the insurance we’re discussing?

Insurance Agent—Yes, the insurance would take care of that. In today’s society, people try to sue for anything and everything but I personally think they would have a very hard time winning a lawsuit against a chandler.

So I guess this insurance will cover what I need. I've been searching for reasonably priced insurance for so many years that I'll be thrilled if I get a quote as good as Raclovin mentioned in the original post in this thread. I just wanted to get input here since I haven't had this coverage previously, to make sure this is what I'm looking for.

Thanks for your responses.

Jane

When searching for insurance a few weeks back, I came across this thread and looked up my local agent. After days of searching and phone calls he called me back to say he couldn't find anything that would cover product liability for B&B and candles:confused:

Can anyone tell me more details of what your agents told you...who is the insurance through (I know they contract through outside companies etc)...if others are getting it through American National why can't I

Well, mine may well have the same results. This is what I had happen 2 years ago when I was trying to find insurance. This agent said that she will "have to submit to underwriting to make sure this is still an eligible class. Sometimes they close down categories but grandfather in ones that are already on the books."

I had thought I would be able to get it because I'm in the same state as the original poster, but he may have gotten his at the right time! I'll just have to see how it goes after she submits it.

I'll post again when I find out if I can get it (and how much it will cost).

Jane

Well, unfortunately, I got my answer and here it is!

The underwriter called me today and informed me that this category has been closed and existing policies will be grandfathered in. She did make some suggestions on what would be helpful to you and extremely cost effective. She suggested contacting your homeowner’s company and adding on a business rider along with increasing your liability. Then to have extra coverage, she also suggested purchasing an umbrella policy. I am not sure what the prices will be on your home policy but the umbrella only runs about $140 a year for a million dollars. The underwriter thought this might save you money since the gross income was below any minimums they normally have.

This is what I was afraid might happen. I'm very hesitant to follow her advice due to reading many threads on here about the possibility of losing my home-owner's insurance. So I'm back at square one!

I promised an update when I got my final answer!

Jane

Yes, but as soon as someone mentions the possibility of losing their HOI - many are quick to jump in that if something happens in your home while you are sneaking a business in there without declaring it, your HOI is under no obligation to pay out.

You don't get insurance on one thing to be lax on another - can you live without your business, or can you live without your home? Either one you go lax on, could cost you your home. Don't just "not tell" them, so nothing happens. I got a very small and separate policy to cover a business related incident (runs about $15 a month, based on income - though I'll need to update it Jan. 1st to which it'll probably go up to $25 a month or so) and my HOI has a copy of that, and of my product liability. They are quite content with it and have never threatened to shut me down.