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Product Liability Insurance


nanny

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I am interested to getting information on product liability insurance. Do you carry liability insurance? Do you have info on reasonably priced insurance companies? Do you think it is even necessary to have the insurance if you use warning labels? Any info I can get will be appreciated. Thank you.

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If you go to the "Business Side of Things" section and do a search on liability insurance, you can find quite a bit of discussion on this topic. I have been looking for cheaper insurance also. Liability insurance through my current insurance company is $711.00 per year.

I have checked with auto-owners and it is quite a bit cheaper but they won't write it unless I move my homeowners policy to them, which is quite a bit more there than where it is now. So I'm going to pay about the same total either way, but if I should ever choose to stop selling candles I'm going to be stuck with higher homeowners if I change, so I'll just stay where I am until I can check out other options.

HTH

Jennifer

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Thank you all for your help, I have now talked to 8 different insurance companies and they have all told me they will not cover candle liability insurance. Our home owners will not cover me (they also are our auto ins co). I am really grasping looking for names of companies. The companies I have called I got off the internet. Do you have names of companies? I live in Illinois. Thanks again.

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nanny, as mentioned I would look at the soap guild (www.soapguild.org) I think it might be the best no fuss solution you need. It's between 400-500/yr (can't remember exactly) for 1 mill in coverage.

If you can't find cheap at least the soapguild is affordable and you get membership to them as well, which includes some pretty decent stuff. Only problem is you have to carry soap in your product line, but you can just pour a couple M&P bars and that counts.

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Why do you need product liability insurance? The policy almost all of us carry is a general business liability insurance policy. They are fairly easy to obtain and fairly reasonable (shop around a lot). Price is based on yearly sales and where you sell your products. Product liability policies are very expensive, and the insurance company will need very detailed info on your product ingredients. So, I bet you really don't need product liability.

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David, nanny might be like me, I don't know, but I only need PLI.

I don't do shows, I don't do fairs, I don't have a storefront. I have a web page. My renter's covers the items inside my house for the business, so I need only to cover my products in the event of someone suing me after use.

That could be a possibility.

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David & Mary: That is exactly what I am looking for, I have been saying it wrong. All I am interested in is the chance someone would sue me for one reason or another. There is always someone anxious to sue over anything. My homeowners will cover $2500 in supplies and inventory but that is it.

Thanks for the replies.

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If something in your candles causes someone to become ill, you can be sued because your product is faulty due to wrong ingredients, etc. Like the big blowup about vegetables lately. The product itself causes harm. The wax, FO, color, wicks bought from standard companies have MSDS sheets that show that they are safe in candles. You can be sued for anything. But no lawyer will touch the case unless there is something wrong with the candle itself. A fire would not normally apply. That would be covered under a general liability policy. It covers trips and falls be customers when they are at your booth. It covers you going to and from your shows or whatever. It would cover fires unless a faulty designed or manufactured candle caused the fire. But that might be very difficult to prove. Think of it another way. If you front tire blows out on your car, and you have a wreck, normally your collision auto insurance would cover the repairs. But, if there was something defective in the design or manufacture of the tire, the tire mfg company would have a product liability insurance policy to cover them. HTH

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there is something wrong with the candle itself.

The candle itself is what is insured with product liability. The candle is the product. If the candle is the product which causes a fire, it's the cause and brings it into PLI. The exact scenario you mentioned is actually what represents this. If someone's house catches fire, their homeowner's covers it. If the cause was a faulty candle, then the product liability covers it.

This is what pretty much all the agents said to me when I was shopping around, as well. American Family, USAA, State Farm, and I can give you more if you want to give them a call. There was a list from a site that was posted here that gave out insurance companies and the states the write for.

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Thank you all for your help, I have now talked to 8 different insurance companies and they have all told me they will not cover candle liability insurance. Our home owners will not cover me (they also are our auto ins co). I am really grasping looking for names of companies. The companies I have called I got off the internet. Do you have names of companies? I live in Illinois. Thanks again.

Hi I also live in Illinois and am having trouble finding insurance. But there has to be an insurance company out there who will sell to us. If I fins any I will let you know Regina

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I am in Illinois as well.

If you're a member of the Ohio Arts & Crafts Guild, we are one of the only states where you can get insurance through their group policy.

http://www.ohioartsandcraftsguild.org/

If you make soap you can get insurance by joining the Handcrafted Soapmaker's Guild.

http://www.soapguild.org/insurance.php?PHPSESSID=638529029e4b64a99b517ccdc4cd95ea

If you don't make soap you can get insurance by joining the Indie Beauty Network.

http://www.indiebeauty.com/channel-ibnyou/join.asp

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