insurance

[opalgirl]

Hi,
I've been making soap since January. I am doing a craft show in October. (primarily stained glass) but I am also planning on putting about 15 fragrances out for sale - about a dozen each. I only do one show a year. I read somewhere that insurance costs around $400/year. I would definitely lose money. Not sure what to do. Can I get insurance from my regular insurance guy? Does everyone have insurance? There has never been any mention of this in my paperwork from the show organizers. Confused.
Thanks,
Opalgirl

 

[Rebelshope]

This info is from the Soapmaker's Companion by Susan Miller Cavitch.

There are three risks
1) harming your home while making the soap.
2) someone is injured while using your soap.
3) Who pays the legal fees if someone sues you.

If you are hobbiest, that is you are not selling your soap hoping to make a profit, which if you only do one show a year I think you would qualify. You are covered under your homeowner's insurance- but you should check just to be sure.

She goes on to talk about selecting a policy.

This book is really good for a quick run down on starting up a soap business and it has some really good info about making soap too.

I am sure others are much more experienced in this manner.

 

[jenmarie82]

So if you don't sell very much soap then you should be covered under homeowner's insurance? What would classify as not very much soap?
Everyone's been telling me that I need insurance to just sell one bar but i can't afford it either, not to just sell a few bars. If my business ever takes off to where i'm selling like a few hundred bars a month then I will definitely have insurance but as it is now, I think it would be a waste of money for me to go out and get a tax id, business license, insurance...i don't even sell 4 bars a month!
Everyone's just been telling me to get insurance now and it's been discouraging for me because i've become so afraid of even introducing my soap to the public for fear of lawsuits. I understand they're only trying to help me protect myself but i'm not selling on the scale they are.

 

[opalgirl]

I agree. It's been very discouraging. I don't plan on turning this into a business. The soap is just for impulse buys in my stained glass booth. I am going to call my insurance guy just to be sure though. As far as business license, tax id etc., in the past I just fill out the state tax form given to me at the show with my sales $ and calculate what I owe in tax and send them a check.
Thanks,
Opalgirl

 

[Rebelshope]

There's a lady that's interested in wholesaling with me for her bed and breakfast and said she wants a price list, sample and would buy about 50-100 at a time. How do i create a wholesale price list? Is there a website somewhere that can help me with this? Also, i know I asked before about the wholesale % and i kinda set it at 40-45% but this big of an order i think i should go with the 50%?

This is what you said in your other post about wholesale. There is a big difference between selling some soap at one craft show a year and selling 50 -100 bars wholesale to a bed and breakfast.

Plus I just wanted to add that is what I found in book. I really have no idea and I am sure that there are others here that know more.

 

[jenmarie82]

WARNING: If you are allergic to any of these ingredients, please do not use our product! *Please use caution when getting out of the bath since soaps may make the tub/shower surface slippery. Do NOT ingest. For external use only. Keep out of reach of children and pets. By purchasing our products, you acknowledge that you understand how to use each product and release "Your Name" from any and all responsibility and liability.

There's a lady in my hometown that sells soaps and I found the above warning on one of her webpages for her soap. Does this really protect you?

 

[mandolyn]

WARNING: If you are allergic to any of these ingredients, please do not use our product! *Please use caution when getting out of the bath since soaps may make the tub/shower surface slippery. Do NOT ingest. For external use only. Keep out of reach of children and pets. By purchasing our products, you acknowledge that you understand how to use each product and release "Your Name" from any and all responsibility and liability.

There's a lady in my hometown that sells soaps and I found the above warning on one of her webpages for her soap. Does this really protect you?

No! Disclaimors won't stop someone from sueing you. You would still have to appear in court to prove you used a disclaimor which means you'd need an attorney to represent you yadayada.

 

[jenmarie82]

Then what's the purpose of a disclaimer?

 

[Rebelshope]

No! Disclaimors won't stop someone from sueing you. You would still have to appear in court to prove you used a disclaimor which means you'd need an attorney to represent you yadayada.

As my dad always used to say, "You can sue anyone for anything." I could walk past your house, sneeze and sue you for aggravating my allergies. That does not mean I would win. Hopefully, if there is any justice, I would lose but I could still sue.

 

[Deda]

Then what's the purpose of a disclaimer?

In a perfect world the 'disclaimer' would be a warning of potential dangers.

And thus by acknowledging potential dangers you are agreeing that your products could be dangerous.

Again, in a perfect world.

 

[IRISEYES]

Okay with me just starting do I need insurance reason being is I have not sold one bar. What if I buy insurance and my business never makes it off the ground.

Would it be harmful if I try to get my feet wet first before buying insurance?

Thanks,
Iriseyes

 

[Deda]

I think as long as you are not selling you are ok without insurance.

 

[Tabitha]

What if you sell 1 bar, the person gets burned & they sue & get your home, car & kids college tuition? That is the bigger question. A home owners policy is not going to cover a business. Chances are by running a biz from your home you have just made your home owners policy null & void anyway.

Ask a lawyer people, pick up the phone & make 1 call. Most initial calls are free. Better yet, call the tax man. If he find out you are selling soap (even 1 bar) from your home w/o collecting sales tax he will come knocking on your door. This is no joke, I had a tax officer in uniform wearing a badge knock at my door & give me 5 days to get straight w/ him or he would show up w/ a moving van & take my assets. This is for real people. This is no joke.

Be proactive. Don't depend on the advice of strangers which is what we are to each other. Oh gee, forum member # 22614 said it was ok so it must be so I think I will go ahead & risk my life, my home, my car and my retirement fund on the hope that that post was right even though I have no idea who wrote it cause it was just a stranger on a computer somewhere out in cyber space....

If you ask the same question 47 times because you did not like the *no* you got the 1st 46 times, eventually you will run across someone who will say yes, it's a an odds thing.

I know this post is harsh but come on people...

For 10 or 15 buck a month you can get prepaid legal w/ all the phon assistance you could ever need. I highlt suggest this. Even if you only use it for a few months untill you get all of your answers it is worth it.

 

[jenmarie82]

can you get insurance without a business license? and why doesn't someone offer it on payments. everywhere i've looked you have to pay the entire amount up front.

 

[Deda]

Okay with me just starting do I need insurance reason being is I have not sold one bar. What if I buy insurance and my business never makes it off the ground.

Would it be harmful if I try to get my feet wet first before buying insurance?

Thanks,
Iriseyes

I have to amend my answer from a few posts up.

OK, as long as you have no business, AT ALL, a HO policy that is in effect. And are only gifting them to friends and family.

I didn't read an earlier post by you in a different thread that said you were already in business. That changes EVERYTHING.

No insurance = suicide.

 

[7053joanne]

One other thing to keep in mind is that if you do start a business in your home...make sure it doesn't cause problems with your homeowners insurance. Some policies will become void if it is not dictated in your policy that a business may be operated on the premesis.

I don't sell a lot of soap...but I got insurance before I sold my first bar. I'm not taking any chances....and I would urge you to do the same.

 

[Tabitha]

can you get insurance without a business license? and why doesn't someone offer it on payments. everywhere i've looked you have to pay the entire amount up front.

Because if you have only made 1 payment of $30.00 and turn around & get sued for 1/2 million your insurance is not going to want to pay off. If you have paid for a full year & they have $500.00 (of your money & several hundred other people's money in your *group*) they will have *something* to work with.

 

[gigig]

Tabitha, I see you are from Texas, me too. Do you buy your ins. from someone here you are familiar with or something on-line from one of the soap associations?