Insurance for Soap and B&B Items - Need Advise

[bcgrayson]

Lately I've been turned down by a number of very nice stores & markets (mostly "wholefood"), because I don't carry any liability insurance for my soaps. You know.... if somebody comes down with a rash after using the soap (God forbid...) or something like that, the store doesn't want to be liable....

Now I make very little money with my soaps -- barely coming out even and the thought of dishing out more money for "insurance" is out of the question for me at this time. At the same time, I'm missing out on a lot of business and don't know what to do! If I ask my insurance company (Statefarm) to quote me a price, I'm afraid they're going to slap me with higher premiums, in view of the fact that I have a so-called "business" (however microscopic it is). They might raise my car insurance, they might raise my home insurance and in the end, they will quote me an astronomical price that I can't afford.

Where, outside of my insurance company, can I apply to get a reasonable crafter insurance that won't put me in the red? Can you think of a good one? What do other soap makers do who want to sell their stuff in these finicky New Age stores that want everything "natural", wholesome, organic and whatnot?

Does anyone have any ideas or care to share how they handle insurance on their products?

Much appreciated!

Corey

[MissMary]

Firstly, you shouldn't be selling ANYTHING without insurance, regardless. Let alone trying to shop wholesale accounts.

Your car insurance, unless you use it as a vehicle for business won't go up, but if your home insurance does, it's because it will be covering your business.

I barely make anything, and in fact, last year, paid more in insurance than I got in orders. BUT, I'm protected. ETA: And this contradicts your prior statements on the forum as to how much you do in business as well.

Also, if you are trying to sell as organic, all natural, etc. you will be subjected to different regulations and will need to comply with them farther than just insurance.

As for insurance, I use Indie Beauty Network. Insurance last year was $500, and it got me a membership as well. So I got 1 million in product liability, listing on their site (which drove a few sales) and some great access to business resources.

You've probably burnt your bridges with those you've visited though. Because you've shown up without insurance, most owners and managers will assume you are ill prepared for laws, licensing, etc., let alone having insurance.

[CareBear]

if you make $5K a year or less you can get insurance through RLI. But they don't cover candles.

it's about half the price of the Indie insurance last time I checked.

[elfcat]

Where, outside of my insurance company, can I apply to get a reasonable crafter insurance that won't put me in the red? Can you think of a good one? What do other soap makers do who want to sell their stuff in these finicky New Age stores that want everything "natural", wholesome, organic and whatnot?

/quote]

For both my candles and soap I have insurance through Benchmark. They're pretty reasonable. I did get quotes from my homeowners and other companies and their quotes were outrageous! I wouldn't think of selling without insurance. Just the peace of mind if nothing else.

As far as the "finicky New Age stores" who want wholesome and natural, I just make them wholesome and natural. Of course I'm one of those "New Age" people myself. So far, no problems.

[Candlebuddy]

Hey Corey ... just wanted to jump in to say what an awesome mold maker you are. I have bought many of your silicone molds on ebay and thru your website as well. You have even been kind enough to do a couple of special orders for me ... excellent quality and excellent customer service. Thanks.

[bcgrayson]

Thank you!

I appreciate the feedback.

Best of luck to all in your businesses.

I hope this Holiday season brings lots of sales and happiness.

Corey