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RLI insurance repackaging B&B not covered?


KMommy
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I have been looking for insurance and I am very disappointed with what I am finding. I could not locate any for Louisiana and was told to check out RLI. On their site under Underwritting Guidelines it states "The applicant does not repackage food or personal care products to be sold under their own label." So this would include the use of bases that are commonly used for lotions and soaps that many scent, bottle, label and sell? Does anyone have this insurance? It really seems almost impossible for the little guy to get coverage. With all of the frivolous lawsuits it doesn't seem wise to operate without it but where do you get it?:mad:

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There is a big thing going on with them right now and the people who have had them for coverage. Their new policy on renewal from what I understand, limits your yearly income to $5,000. I have heard bits and pieces of this, so I don't have the whole story. Seems like they were talking about this on the Whisk the other day. Heard they are trying to come up with something else to offer as a lot, since this effects a lot of their policy owners. Everyone is up in arms over this right now, for good reason. But like I said, I have only heard bits and pieces on this, don't have the full story.

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The 5,000 did surprise me but what really concerned me is the fact they won't cover the use of repackage products to be used with your company name. Maybe I am not understanding this clearly because lotion bases and M&P soap bases seem to be very popular. I know of several boutique that use lotion bases, scent and use a custom label for sale in their stores. I can't understand why this wouldn't be covered. I sure hope I am misunderstanding what I read. There is also information concerning the owner not using any products that would be considered flamable. I am assuming that would cover FO's.

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Yeah, you got me there. I would try to get in contact with them somehow. This might have all gone into effect when the change in the amount of earnings changed. I sure hope they fix it, a lot of people that make their living on their handmade wares have no where else to go for insurance. I too would be interested in what you find out.

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  • 4 years later...
I have been looking for insurance and I am very disappointed with what I am finding. I could not locate any for Louisiana and was told to check out RLI. On their site under Underwritting Guidelines it states "The applicant does not repackage food or personal care products to be sold under their own label." So this would include the use of bases that are commonly used for lotions and soaps that many scent, bottle, label and sell? Does anyone have this insurance? It really seems almost impossible for the little guy to get coverage. With all of the frivolous lawsuits it doesn't seem wise to operate without it but where do you get it?:mad:

I have been getting conflicting information on whether they are not covered or whether it's the fact that sales have to be below $5K. Either way, we get a lot of business from people that can't get it insured through RLI. But try Indie Beauty or Soapguild. Or email me, I can help!

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I have a contact at a brokerage that is writing coverage for candle & soap makers that includes products and completed operations. They can write in every state except KY, IL & the US Virgin Islands.

The policy is written with Lloyds - a basic policy is starting at $200-$300 per year with a max gross sales limit of $100,000.

If anyone is interested email me at terim@ridgwayins.com and I can send you the application.

FYI.... I'm currently and agent and have been in the field for about 20yrs now.

here are the minimum premiums:

with a $300,000 liability limit - $235. / $500,000 - $265. / $1,000,000 - $300.

of course these are just minimums and any additional coverage that are added would add additional premium.

the $1,000,000 limit includes business personal property on/off your premises - this would come into play for craft shows & farmers markets

TeriM

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I have been looking for insurance and I am very disappointed with what I am finding. I could not locate any for Louisiana and was told to check out RLI. On their site under Underwritting Guidelines it states "The applicant does not repackage food or personal care products to be sold under their own label." So this would include the use of bases that are commonly used for lotions and soaps that many scent, bottle, label and sell? Does anyone have this insurance? It really seems almost impossible for the little guy to get coverage. With all of the frivolous lawsuits it doesn't seem wise to operate without it but where do you get it?:mad:

As long as you do something to the base to alter it, you can re-package it. I used to have this insurance and asked them about this specifically, since I use lotion bases.

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I have been looking for insurance and I am very disappointed with what I am finding. I could not locate any for Louisiana and was told to check out RLI. On their site under Underwritting Guidelines it states "The applicant does not repackage food or personal care products to be sold under their own label." So this would include the use of bases that are commonly used for lotions and soaps that many scent, bottle, label and sell? Does anyone have this insurance? It really seems almost impossible for the little guy to get coverage. With all of the frivolous lawsuits it doesn't seem wise to operate without it but where do you get it?:mad:

Hello,

I was informed that RLI was mentioned on this forum and would just like to respond. When we write a policy, one of the qualifications is that you do not repackage any products. Repackaging (to us at least) means that you take a pre-made product, like a bar of Acme Soap, take the label off, put your label on and claim it as your own.

If you make your own from scratch or use a base and THEN add a fragrance, color, etc - that is NOT considered repackaging because you alter the original 'recipe' and make it your own.

People seemed confused or possibly had conflicting information as to the definition of Repackaging. Hopefully this helps.

Thanks!!

Christopher A. Alexander

Direct Sales Agent, Specialty Markets

RLI Insurance Company

Phone: 309 692 1000 ext: 5481

Toll Free: 866 741 6560

Fax: 309 689 2223

chris.alexander@rlicorp.com

www.rlicorp.com

www.insuremyhomebiz.com

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