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Indie Beauty Network Liability Insurance


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If memory serves, you are in the planning stages of a business, correct? IMHO, you are getting the cart before the horse!

No offense, but asking folks on a discussion forum about how to read a liability insurance policy is not the best place to start! Before trying to read an insurance policy, or even consulting with a professional, you need to sit down and make a business plan! There are MANY sites on the net which discuss starting one's own crafting business. Read, read, read!! What type of business do you want to have? Sell on the 'net? Sell from a shop in the mall? Sell at stores in several states? Wholesale or retail? What products will you offer? Who are your target customers? How will you market your products to your target customers? Are you planning to have employees? Are you going to do this in your spare time? How much time can you devote to your business-related activities. And so on... This is important because if you don't have a general road map of where you want to go, chances are, you will have trouble getting there! Pros are going to ask you specific questions that you will need to answer before they can give you sound advice. If you are uncertain or lack knowledge of the industry, study the businesses of other people who are successfully operating the kind of business that you might like to have. Attend some shows or conventions where people from the industry gather to learn and share specific information & products pertaining to your business interests.

Once you have a rough business plan, then you should initially consult with two local key professionals to assist you - an attorney and an accountant. They are the ones who can best advise you of your business insurance needs and tell whether a policy you are considering is right for your business needs or not. HTH :)

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Oh, absolutely no offense taken. You are a gem, Stella, and I appreciate the benefit of your experience and that you are willing to share it with others! :)

You are completely correct in that a solid business plan is in order, and I should have been more explanatory in my post as to what information I was seeking and for what purpose.

I'm doing my advanced homework for "if/when the hobby moves to a business." I'm completing the packet of information supplied by the SBA. I've completed the sections of the worksheets that help you generate an outline for a business plan and determine potential startup costs. I've completed the sections for: business structure, licensing/registration, marketing, customer demographics, product mix, product distribution methods & locations, and employee.

The part of the worksheets I'm on now needs descriptors of insurance to protect your business, plus three potential sources for the coverage and annual premium.

When I posted the question, I was actually waiting to hear back from Natasha @ Stratus (the broker for the underwriter of the crafter's liability policy through IBN) to get the details on specific coverage, and was wondering if the IBN policy was general liability, products liability, or both. I was thinking that someone on the board who might have this policy could provide that information. I got the information from Natasha this morning and learned that the crafter's policy in question is BOTH general liability and products liability.

My local insurance agent is also searching for me, but doesn't think he can find anything that can compare favorably to the premium available with IBN or HSMG annual membership. Ohio Art and Craft Guild doesn't write policies in Missouri, which is a shame, because they had really good rates, too.

Back to homework now for me :)

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