# Liabilities when someone has bad reaction (M&P)



## heatherg23 (Dec 8, 2012)

I read on a website that you have to have business insurance if you're going to sell soap. Just in case they have a bad reaction to it.

 I can see have it if you are doing Cold Process but if I used someone elses base how can I be liable?
Do anyone have insurance?

Thanks for the replies!
Heather


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## sperry (Dec 8, 2012)

Disclaimer:  I am not a lawyer.  The rule of thumb in the US of A is anyone can sue anyone for anything. Most lawyers go after deep pockets, and my hunch is that almost any lawyer would forget about you and go after the company that made the base.  But are you willing to bet all your material possessions on that?  Bottom line:  you better be ready to defend yourself against the stupidest of lawsuits.  I owned my own business for 10 years and I'm guessing I was threatened with lawsuits about 5 times.  Even though all were horribly frivolous, IMHO, it scared me to death each time.  Each time, I called my lawyer (who charged me for each call), we laughed, and that was that.  But if any of those 5 would have materialized, would he have defended me for free?  Uh....... probably not.


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## lsg (Dec 9, 2012)

Check with your home owner's insurance to see if they will add a rider that covers your small business.  Liability from the soapmaking organizations that I know of is very expensive for a small soap maker.  Having said that, I do insure myself although I am pretty small peanuts.


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## Lindy (Dec 9, 2012)

The thing with MP is that you are adding other ingredients and that is what makes you liable.  Here in Canada even MP crafters must register their recipes with Health Canada as they are considered cosmetics.


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## Genny (Dec 9, 2012)

If you're a small business, I recommend checking with RLI Insurance.


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## Momonga (Jan 7, 2013)

Am I a small business if I just sell stuff on Etsy or a table at a craft fair?  Haven't ever sold anything I've made, but I'm not sure what else to do with all this soap I am making.  I can only take so many showers, but on the other hand I have no desire to deal with this or any other unpleasantries associated with running a business.  I already have a very full time job!


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## Genny (Jan 7, 2013)

Momonga said:


> Am I a small business if I just sell stuff on Etsy or a table at a craft fair?  Haven't ever sold anything I've made, but I'm not sure what else to do with all this soap I am making.  I can only take so many showers, but on the other hand I have no desire to deal with this or any other unpleasantries associated with running a business.  I already have a very full time job!



If you take money for your product, you are a business.  Even if it's just for the cost of materials.


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## Momonga (Jan 16, 2013)

Thanks Genny.  It seems like something I don't have time for, liability aside.  I saw an alternative idea to donate the soap, which is what I think I will do!  Thanks, heatherg, for shining a light on this - I wonder how many people are out there selling without insurance?  Probably oodles.


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## Genny (Jan 16, 2013)

Momonga said:


> Thanks, heatherg, for shining a light on this - I wonder how many people are out there selling without insurance?  Probably oodles.



More than you could imagine.


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## melstan775 (Jan 16, 2013)

If you're in the USA, you will be held liable for selling a product which may be known to cause allergies.  Lawyers are all over that stuff right now. I wouldn't chance it.


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