Insurance...

[Kelly]

But how many small time candle sellers/makers are incorporated?

I'd be interested in how many people who post to these boards have had to use their insurance to pay a suit against them. Maybe I'll start another survey, people really seemed to like this one! LOL

[stacien]

Take it from me my husband and I own a business and you can't imagine the type of people that will file a law suit. Even the filthy rich people do it for satisfaction. Especially if its a medical emergency that was caused by one of your candles or a person went into analphylactic shock and died from a B&B product. Lawyers usually start the bidding at $500,000.000 for medical. No average household has that just tucked away for a rainy day. The thing to always remember you are never fully protected by organizations lawyers can always find loopholes. I have a couple in my family.

[David Fields]

TeriM, to answer your question... No, our products are not excluded from our general liability policy; a general liability policy does not cover faulty design/manufacture of a product that resiults in a cliam. A general policy covers general claims that can result in having a business; ie, trips, falls, accidents of all kinds. A fire could be covered by a general policy or a product liabilityl policy or both. It's like. If you drive a Ford and run off the road and hit a tree, your auto insurance would cover your claim, unless the tire fell off, causing the accident. Then, the manufacturer might be liable, or the dealership. It would just depend on where the blame lay. Normally, all you really need is a general liability policy until your business sales and assets become humongous. Also, we found that some buildings and craft show promoters require a general policy. Hope I have not muddied the water more.

[Di_in_AZ]

But how many small time candle sellers/makers are incorporated?

I'd be interested in how many people who post to these boards have had to use their insurance to pay a suit against them. Maybe I'll start another survey, people really seemed to like this one! LOL

To me, it is a crapshoot--a gamble. I, too, would be interested in how many here have had a suit or claim brought against them, regardless of the resolution.

I have tried searching online, and the only suit I have ever come across was the one against Banana Republic (I could be wrong on the company) regarding soot damage and lead wicks. I haven't seen any other suit.

Whenever I have seen it in the paper, a fire from candles, the cause is always, near a curtain or left unattended--not from a poorly made candle.

[CC on Maui]

Kelly -- I'm confused about what difference it should make to you whether others sold/sell candles without having insurance?

The sense I'm picking up from your posts is that by knowing others have sold without insurance justifies you doing the same -- the old safety in numbers mentality. From what you've written, your understanding of liability insurance is a bit skewed. Insurance companies have a fudiciary responsibility to protect you whether you are at fault, or not at fault. IMHO, any business that sells any type of goods/services to the public should have appropriate insurance in place. That's just sound business practice(s).

As for what suits have occurred? Just go back through the archives of the Consumer Product Safety Council on recalls (http://www.cpsc.gov/ ). You'll find plenty that involve candles. Recalls usually come about as a result of numerous complaints and/or lawsuits filed. As for lawsuits, the largest percentage are settled before they ever have their day in court -that's why you don't read about them. Insurance companies spend $$$ annually in both defense and in settlements.

In the end, you are the one who has to weight the risks of whether you choose to sell with insurance -- or without. Only you know all the factors that come into play for your particular circumstances. It's that simple -- and that difficult, KWIM?

[jgcurtis1961]

I have looked EVERYWHERE for insurance. My insurance agent finally called me and told me she could not find me the insurance that I needed. Not one insurance company that I called was able to find me coverage. I told my agent about the insurance offered through the soap guild and she said I should consider that coverage. I am hoping after the first of the year I can come up with the premium for the coverage. Looks like I'm going to have to make a few bars of soap though so I'll be able to get the insurance.:undecided

[Everito Bandito]

I have looked EVERYWHERE for insurance. My insurance agent finally called me and told me she could not find me the insurance that I needed. Not one insurance company that I called was able to find me coverage. I told my agent about the insurance offered through the soap guild and she said I should consider that coverage. I am hoping after the first of the year I can come up with the premium for the coverage. Looks like I'm going to have to make a few bars of soap though so I'll be able to get the insurance.:undecided

I don't think you have to have soap if you get the insurance through, the Handmade Beauty Network. I think it's the same basic policy.

[TeriM]

TeriM, to answer your question... No, our products are not excluded from our general liability policy; a general liability policy does not cover faulty design/manufacture of a product that resiults in a cliam. A general policy covers general claims that can result in having a business; ie, trips, falls, accidents of all kinds. A fire could be covered by a general policy or a product liabilityl policy or both. It's like. If you drive a Ford and run off the road and hit a tree, your auto insurance would cover your claim, unless the tire fell off, causing the accident. Then, the manufacturer might be liable, or the dealership. It would just depend on where the blame lay. Normally, all you really need is a general liability policy until your business sales and assets become humongous. Also, we found that some buildings and craft show promoters require a general policy. Hope I have not muddied the water more.

here's the definition of the Products/Completed Operations that is on a liability policy:

Products/Completed Operations

This coverage is used to insure against claims arising out of bodilyinjury and property damage that results from products you have sold,manufactured, handled, distributed or disposed of, or for work you have performed, provided the accident occurs away from premises you own or rent

[CC on Maui]

I have looked EVERYWHERE for insurance. My insurance agent finally called me and told me she could not find me the insurance that I needed. Not one insurance company that I called was able to find me coverage. I told my agent about the insurance offered through the soap guild and she said I should consider that coverage. I am hoping after the first of the year I can come up with the premium for the coverage. Looks like I'm going to have to make a few bars of soap though so I'll be able to get the insurance.:undecided

Sorry you ran into such a problem. Unfortunately, alot of Insurance Brokers aren't sure where to look for this coverage. I went through three brokers before I found one who could help me (when I first started up). Often, for new companies, only higher risk insurance companies are willing to take them on. Of course, this coverage comes at higher premiums, too. After several years in business and no claims experience, you'll find that mainstream (standard) insurance carriers will be willing to take a look at you.

That said, I switched my coverage to the Soap Guild policy when it became available. I am saving over $2000 annually in my operating budget as a result.