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TallTayl

Small and Indie Business Insurance, Product Liability

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When you begin to sell your products, it is often recommended to obtain Product Liability and possibly other business insurance coverage to protect yourself from potential law suits.

At first the project of finding and selecting a carrier seems daunting. Depending on your sales levels, insurance may even seem out of reach at first. You have several options, some dependent on your total sales in a given calendar year.

This list is not all inclusive, but gives you an idea of places to start your search for a carrier that fits your personal business needs.

Popular Insurance Carriers for Indie Businesses (Soap, Candles, Cosmetics, etc)

Name: Brower Insurance - sold to Marsh & McLennan - Sold to ZN Creative

Product: Artist and Craft Artist Program

Web site:

http://www.mma-mw.com/business/specialty-programs/artist-program

https://zncreative.com

 

Products Covered: Speak with agent. No specific products are listed on the site.

Extra Benefits: none

Note: insurance coverage only. No memberships to guilds or networks required.

 

 

Name: RLI

Product: Product Liability Insurance

Web site: http://www.rlicorp.com/Products/pl.asp

Extra Benefits: none

Products Covered: Speak with agent. No specific products are listed on the site.

Note: insurance coverage only. No memberships to guilds or networks required.

 

 

 

Name: Handcrafted Soap and Cosmetics Guild

Web site: http://www.soapguild.org/

FAQ: http://www.soapguild.org/membership/benefits-chart.php

Products Covered:

Quote
Soaps, lotion, bath salts, perfume, essential oils, fragrances, candles, jewelry, clothing, fragrance oils, base oils, waxes, powders, masks, scrubs and just about anything else that is used to beautify the body, the home or the environment and is handcrafted. This list is not a full list, but a representative sampling of the kinds of products covered.

Pet products are covered if they are handcrafted by you. If they are made elsewhere and repackaged by you, or you buy them in bulk and repackage them, they are not covered by this program.

Coffee, tea and other consumables are covered only if they are prepackaged and sold in a set (such as a gift basket) in conjunction with handcrafted items that are covered as above. If they are sold separately, they are not covered.

Extra Benefits: some supplier discounts. http://www.soapguild.org/membership/benefits-chart.php

Other Notes: insurance is a member benefit. You cannot obtain insurance without accompanying guild membership.

 

 

 

Name: Indie Business Network

Web Site:

http://www.indiebusinessnetwork.com/products/

Product Info:

http://www.indiebusinessnetwork.com/product-liability-insurance/ x

Products Covered:

Quote
The program covers the following types of products: handmade lotion, soap, bath salts, perfume, essential oils, candles, jewelry, perfumes, fragrance oils, base oils, waxes, powders, masks and scrubs. Candies, cookies and brownies are covered only if they are sold in a set (such as a gift basket) in conjunction with cosmetics that are covered. If they are sold separately from covered cosmetics, they are not covered by this program. Items that are not covered include products such as these: drugs, nutritional supplements, products requiring a prescription, cosmetics designed for internal use, coffee, tea, children’s toys and meat products. If you are unsure as to whether or not your product is covered, please contact Valerie Bjarnson at Veracity Insurance at(866) 395-1308 or ibn at veracityins dot com for assistance.

 

Extra Benefits: some supplier discounts.

Note: insurance is a member benefit. You cannot obtain insurance without accompanying IBN membership.

Other:

Check with your own insurance carrier(s) and compare options and rates. It is useful to have coverage charts from the popular specialized industry options to compare apples to apples.

Edited by TallTayl
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Ought to be a "sticky",TT. Thanks!

(= whispers... It is a sticky... =) I figured it would be useful as a sticky in this section.

If you have any other insurance sources, or ideas for business links please let me know. We're building more into these business pages to (hopefully) help a bit.

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Great info! Something anyone thinking about selling their product needs to consider and check out!

I believe there is also insurance specifically for craft shows. I used to know of a company from a craft show directory I had a subscription with. I will look it up and post it if I can find it.

Edited by Candybee
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Hi trying to get product insurance for candle selling etc, but not having any luck I have an agent he says it's very hard to get in Michigan can anyone help me located and insurance company have called a lot of company and no help thanks in advance,linda

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TallTTayl

how about a post (or better yet, a sticky) in regards to the INCI? Though I have it under my favorites, it may be a good thing to have here also, especially for those new to the craft.

Just a thought; thanks!

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Great post ! Unique Candles ...I recently received an email from WSP regarding small business insurance relating to bath/body etc.

Im sure somewhere on the website you'll find some information - wholesalesupplies 

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8 hours ago, SweetTreat said:

If we purchase a base lotion and add fragrance/oils to it, is that considered "hand crafted?"   

For insurance yes.

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16 hours ago, SweetTreat said:

If we purchase a base lotion and add fragrance/oils to it, is that considered "hand crafted?"   

Read the requirements for each individual provider. Some vary. They all specify what they cover and what qualifies. 

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Can any one tell me ,just starting out a business in candles, how much liability insurance would be for a year? Small business, in Tx. The insurance I found used a underwriter. With fees, around 900.00 a yr.

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The prices in the top post are still pretty close to accurate. $500-$550 a year typically for product and general liability along with membership to the respective guilds.

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5 hours ago, NrthTxWind said:

Thanks TallTayl... cant seem to pull up Brower. Gone under? I don't make soaps....yet. So Indie might be the one.

 

A quick google of Brower showed they were sold to Marsh & McLennen, who spun off the artist insurance to ZN Creative. The site linked for ZN Creative allows for an instant quote. No idea about coverages or restrictions.

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I recently received this email from WSP and thought I would share. Could be good news for some of you:
 
 
August 19, 2016


Breaking News:  New Mexico - Handmade Insurance Program

Just in Time for Craft Show Season!
Affordable Handmade Insurance

 

New Mexico been approved and added to the Handmade Insurance website.  This means if you live in those states (as well as the others already approved) you can secure your affordable insurance policy for as low as $275 today!  

Why do you need insurance?  Because you work hard and it is important to protect yourself, your business and your assets with liability insurance that will respond to claims made against our business activities, including producing and selling hand made products.  

Unfortunately, homeowner policies most likely will not respond to claims involving the business activities of producing and selling handmade products which leaves small soap and cosmetic makers with very few "affordable" options.  

 
Luce, Smith & Scott. is an independent insurance agency that specializes in the development of insurance programs for specialty industry business groups. They are developing an affordable (for many as low as $275 annually) insurance program for the handmade industry with an A+ Best rated insurance company.

Policies are now available in the following states:  AL, AR, AZ, CA, CO, CT, FL, GA, IA, ID, IL, IN, KS, KY, MA, MD, ME, MI, MN, MO, MS, MT, NC, NE, NC, NJ, NM, NV, OH, OK, OR, PA, SC, TN, TX, UT, VA, VT, WA, WI, WV.

In the near future policies are expected in these states: LA,NH, NY.  Rest of the states will follow shortly thereafter.

Don't delay, go to the Handmade Insurance.com website and get coverage today!

Debbie May
President
Wholesale Supplies Plus, Inc.
www.WholesaleSuppliesPlus.com
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1 hour ago, Candybee said:
I recently received this email from WSP and thought I would share. Could be good news for some of you:
 
 
August 19, 2016


Breaking News:  New Mexico - Handmade Insurance Program

Just in Time for Craft Show Season!
Affordable Handmade Insurance

 

New Mexico been approved and added to the Handmade Insurance website.  This means if you live in those states (as well as the others already approved) you can secure your affordable insurance policy for as low as $275 today!  

Why do you need insurance?  Because you work hard and it is important to protect yourself, your business and your assets with liability insurance that will respond to claims made against our business activities, including producing and selling hand made products.  

Unfortunately, homeowner policies most likely will not respond to claims involving the business activities of producing and selling handmade products which leaves small soap and cosmetic makers with very few "affordable" options.  

 
Luce, Smith & Scott. is an independent insurance agency that specializes in the development of insurance programs for specialty industry business groups. They are developing an affordable (for many as low as $275 annually) insurance program for the handmade industry with an A+ Best rated insurance company.

Policies are now available in the following states:  AL, AR, AZ, CA, CO, CT, FL, GA, IA, ID, IL, IN, KS, KY, MA, MD, ME, MI, MN, MO, MS, MT, NC, NE, NC, NJ, NM, NV, OH, OK, OR, PA, SC, TN, TX, UT, VA, VT, WA, WI, WV.

In the near future policies are expected in these states: LA,NH, NY.  Rest of the states will follow shortly thereafter.

Don't delay, go to the Handmade Insurance.com website and get coverage today!

Debbie May
President
Wholesale Supplies Plus, Inc.
www.WholesaleSuppliesPlus.com

 

unfortunately, I just read through their FAQs and info and they exclude candles (not eligible). Bummer

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I don't know if anyone has tried but I contacted RLI just to see how their rates compared and they do not sell insurance to individuals.

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Check wholesale supplies plus too. They recently offered insurance options from what I remember reading. 

 

In the end, the handmade soap and cosmetics guild has been one of the best , most comprehensive. Indie business network also covered edible hand made from the last time I checked.

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