# Business insurance



## SunRiseArts (Sep 21, 2019)

I wonder what the original opinion is on here regarding insurance.  I know we all should have it, and I have for 4 years,  However, I have not been selling this past year, and policy is due at the end of the month.  Money is tight, and I was thinking of doing away with it.

The only concern I have is I like to give soap as gifts during the holidays.  People kind of expect it. I asked my broker if I would be covered under homeowners, and he did not give me a straight answer.

Comments?


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## LilyJo (Sep 21, 2019)

I know its prob different in the states but my view is if you aren't selling I.e. running a business and are simply a crafter making soap for friends and family you wouldn't need insurance but I would be interested to see what others say.


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## Kari Howie (Sep 21, 2019)

SunRiseArts said:


> I wonder what the original opinion is on here regarding insurance.  I know we all should have it, and I have for 4 years,  However, I have not been selling this past year, and policy is due at the end of the month.  Money is tight, and I was thinking of doing away with it.
> 
> The only concern I have is I like to give soap as gifts during the holidays.  People kind of expect it. I asked my broker if I would be covered under homeowners, and he did not give me a straight answer.
> 
> Comments?


I agree with LilyJo, but I tend to think your homeowner’s insurance would not cover you. Best way to find out is to ask your homeowner’s insurance company unless that’s what you mean by broker. To me a broker is a stock broker or real estate broker.


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## Cellador (Sep 21, 2019)

My opinion is strictly personal, but I think if you are only giving gifts, especially to people who know you and are expecting it, then you don't need insurance.  I would hope those people would be open & honest enough to come to you if they had a problem with your product. But...there's always a risk, I guess.
Is there some sort of "worst case" policy out there that would be less expensive? I know for car & health insurance, there are low-cost/high deductible plans available that basically only cover catastrophic events.


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## Mobjack Bay (Sep 21, 2019)

Before you asked the question, I guess I assumed that personal liability coverage of homeowners insurance provides the coverage needed (ETA) for gifting.  My son is a home brewer and also a lawyer who specializes in risk management law.  I will ask him about the legal implications of gifting homemade products. Personally, I would be far more wary of bad cooks than home crafters.


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## melinda48 (Sep 21, 2019)

Kari Howie said:


> I agree with LilyJo, but I tend to think your homeowner’s insurance would not cover you. Best way to find out is to ask your homeowner’s insurance company unless that’s what you mean by broker. To me a broker is a stock broker or real estate broker.


Issuance agents are also referred to as brokers because, like stockbrokers, agents sell policies based on which company can offer the best coverage based on your needs. They “broker” the coverage.



SunRiseArts said:


> I wonder what the original opinion is on here regarding insurance.  I know we all should have it, and I have for 4 years,  However, I have not been selling this past year, and policy is due at the end of the month.  Money is tight, and I was thinking of doing away with it.
> 
> The only concern I have is I like to give soap as gifts during the holidays.  People kind of expect it. I asked my broker if I would be covered under homeowners, and he did not give me a straight answer.
> 
> Comments?


If your insurance broker can’t give you a definitive answer, I would search for another broker (agent). the main job of your agent is to get you the best coverage for the best price and if s/he doesn’t know what your coverage is, Imwould be concerned.


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## Lin19687 (Sep 21, 2019)

If you decide to sell at any point I would get it.
If ONLY  making a few, like under 50 bars for friends that is up to you.  Home Ins will NOT cover you.


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## soapmaker (Sep 21, 2019)

From my experience with this Homeowners Ins. will not cover you. When it finally clicked with my H. I. that I was making soap in my house (even though I disclosed this) they would not cover me period. Not even H.I. so now I have Homeowners and business insurance through another company. I can't imagine you needing insurance to give gifts, otherwise we would all be at risk for giving a gift of food or home made wine.
ETA: I meant to say H. I. will not cover you if your SELL.


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## Mobjack Bay (Sep 21, 2019)

I can’t understand how homeowners would not cover gift giving.


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## soapmaker (Sep 21, 2019)

Mobjack Bay said:


> I can’t understand how homeowners would not cover gift giving.


No, just that I could not sell it and have them carry the home. They wanted me to say that I wasn't going to sell it. When I said that I was going to sell it PLUS add business insurance, the one H.I. company would not carry the H.I. even though I had business insurance. It was just that one company though. Like I said I have both now from another company.


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## Mobjack Bay (Sep 21, 2019)

soapmaker said:


> No, just that I could not sell it and have them carry the home. They wanted me to say that I wasn't going to sell it. When I said that I was going to sell it PLUS add business insurance, the one H.I. company would not carry the H.I. even though I had business insurance. It was just that one company though. Like I said I have both now from another company.


Thanks for the clarification!  I’m not planning to sell soap any time soon, but it’s good to know these things!


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## SunRiseArts (Sep 21, 2019)

Kari Howie said:


> I agree with LilyJo, but I tend to think your homeowner’s insurance would not cover you. Best way to find out is to ask your homeowner’s insurance company unless that’s what you mean by broker. To me a broker is a stock broker or real estate broker.


As someone explained there are insurance brokers. I prefer to deal with them because they  have the ability to look at the whole market and give you the best quotes and company. I actually have a bachelors in business insurance, but is from a long time ago , and laws have changed, and I have not lept up with certification. t used to be that weather making a homemade cake or quilt, you would be cover as long as it not a business, but I am talking about the 80s...  They have made everything so convoluted with regulations, that I am not surprised he is not sure.  But yes, he should know.



Mobjack Bay said:


> Before you asked the question, I guess I assumed that personal liability coverage of homeowners insurance provides the coverage needed (ETA) for gifting.  My son is a home brewer and also a lawyer who specializes in risk management law.  I will ask him about the legal implications of gifting homemade products. Personally, I would be far more wary of bad cooks than home crafters.



Thank you I will be looking forward to your answer!

Thank you everyone!


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## Kari Howie (Sep 21, 2019)

melinda48 said:


> Issuance agents are also referred to as brokers because, like stockbrokers, agents sell policies based on which company can offer the best coverage based on your needs. They “broker” the coverage.


Ah! Got it. Thanks.


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## Lin19687 (Sep 21, 2019)

The main thing that Ins will be wondering about it the LYE... homeowners ins.
That would be the big thing I would think


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## LilyJo (Sep 22, 2019)

Lye is just the same as drain cleaner really, the issue surely is product/personal liability...?


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## Lin19687 (Sep 22, 2019)

LilyJo said:


> Lye is just the same as drain cleaner really, the issue surely is product/personal liability...?


I would guess that would depend on How much Lye you have   I would say the 'normal' house with town water/sewer would maybe have 1- 16 oz bottle a year.... if that.
Not even sure if using Lye for drains for septic is good, that is if you are using it a lot and not just say 3 times a year.
It all would depend on the Ins and all.


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## soapmaker (Sep 22, 2019)

LilyJo said:


> Lye is just the same as drain cleaner really, the issue surely is product/personal liability...?



Yes, it had nothing to do with the lye in my experience. It was all about product/personal liability.


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## Mobjack Bay (Sep 22, 2019)

Mobjack Bay said:


> My son is a home brewer and also a lawyer who specializes in risk management law.  I will ask him about the legal implications of gifting homemade products


According to my son, “You can’t eat a Peanut M&M and then sue the company if you get anaphylactic shock because you’re allergic to peanuts.” He suggested that the easiest way to avoid any problems is to make sure the soap is labeled with the ingredients.


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## soapmaker (Sep 22, 2019)

Mobjack Bay said:


> According to my son, “You can’t eat a Peanut M&M and then sue the company if you get anaphylactic shock because you’re allergic to peanuts.” He suggested that the easiest way to avoid any problems is to make sure the soap is labeled with the ingredients.



Could it really be that simple? Sounds good but I know it has happened to soapmakers at least according to my broker. She said they have had a claim before. But how it turned out or whether the soap was properly labeled I don't know.


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## Mobjack Bay (Sep 22, 2019)

soapmaker said:


> Could it really be that simple? Sounds good but I know it has happened to soapmakers at least according to my broker. She said they have had a claim before. But how it turned out or whether the soap was properly labeled I don't know.


Per the OP’s first post, my response is in the context of gifting, not a business transaction.


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## soapmaker (Sep 22, 2019)

Mobjack Bay said:


> Per the OP’s first post, my response is in the context of gifting, not a business transaction.


Oh, got it.


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