Is it really necessary to have insurance when selling soap?

[Hazel]

Just because the cup said "Caution : contents hot, handle with care" or some other type of blanket statement does not prevent liability in cases where you are intentionally putting your customers at danger for your own good (more revenue).

It would be like if a soaper were to slap a warning on their packaging saying "Caution : may contain pockets of un-reacted lye" and trying to sell a customer a bar of pure lye... the little warning doesn't really count when you know you are making it dangerous.

You've brought up the point that many of us having been trying to emphasize - a blanket statement doesn't prevent liability!!!

It doesn't matter if someone experiences or believes to experience a reaction to something she or he purchased from you. You can be sued and you can lose! As someone mentioned earlier in this discussion, insurance is a no brainer.

BTW, I don't like being attacked about using the McD's coffee incident as an example. I never said the woman was stupid, sue-happy or wanted to get rich. I'd like to correct the opinion of some people who think I'm being callous about this woman who was burned by McD's coffee. At the time this happened, I was employed by a management group and I would drive over 500 miles every week. I often stopped at McD's and bought coffee. I know it was hot, hot, hot because several times I had spilt it on myself and it was painful. But I never thought to sue the company. It only takes one person to sue you and you could lose everything! I will never suggest to anyone to start any business without protecting herself by having insurance. That's a risk people have to decide on their own that they're willing to take.

edited to correct misspelled word

 

[serfmunke]

I am about to talk to an agent from RLI. I look forward to finding out what they will cover and what they will not. One of my concerns is if they cover any home expenses that our home owners will not cover, say a lye accident.

Thank you to the soaper who recommended them. I hope to get as good of a quote and they did :wink:

 

[zeoplum]

I am about to talk to an agent from RLI. I look forward to finding out what they will cover and what they will not. One of my concerns is if they cover any home expenses that our home owners will not cover, say a lye accident.

Thank you to the soaper who recommended them. I hope to get as good of a quote and they did :wink:

Will you also ask what kind of documentation and due diligence they require f someone files a claim against you?

 

[Soapy Gurl]

Our society makes me sad. I would like to sell a few bars of soap here and there. The insurance issue makes me to uncomfortable to do it. I won't have enough sales to break even with soap costs too. So I am stuck with becoming aggressive with my selling or selling nothing. It would be so nice to come close to breaking even.

 

[Hazel]

I don't sell but I understand your feelings about our society. Everyone wants better items but they don't want to pay for it. I know how expensive everything is so I'll pay the price if I see handmade soap or lotion that I want. Unfortunately, consumers don't realize the expense that goes into making soap and body products. Not only do you have supplies to purchase but there is all the extra costs - packaging, labels, insurance, taxes, electricity, equipment, gas to get to shows and possibly web site expenses. I'm sure there is more that I'm not even aware of with selling. I do wish you the best if you decide to sell.

 

[serfmunke]

I am about to talk to an agent from RLI. I look forward to finding out what they will cover and what they will not. One of my concerns is if they cover any home expenses that our home owners will not cover, say a lye accident.

Thank you to the soaper who recommended them. I hope to get as good of a quote and they did :wink:

Will you also ask what kind of documentation and due diligence they require f someone files a claim against you?

I will, good point. I have to fill my paperwork out and send it in. I will ask then.

 

[serfmunke]

Our society makes me sad. I would like to sell a few bars of soap here and there. The insurance issue makes me to uncomfortable to do it. I won't have enough sales to break even with soap costs too. So I am stuck with becoming aggressive with my selling or selling nothing. It would be so nice to come close to breaking even.

My quote from RLI was $209. You should contact them. I was all bummed out when my initial quote from our main insurance company was $600. I got the insurance because of the occasional bars I sell to people outside my immediate circle of friends and family.

As far as filing a claim, the guy said it depended on what kind of claim. If we had a loss of equipment due to theft, we would need the police report and any receipts from equipment and supplies.

I was in Home Depot with the family when he called so I didn't get too involved in the conversation. Sorry I was not more helpful

 

[zeoplum]

As far as filing a claim, the guy said it depended on what kind of claim. If we had a loss of equipment due to theft, we would need the police report and any receipts from equipment and supplies.

I was in Home Depot with the family when he called so I didn't get too involved in the conversation. Sorry I was not more helpful

Oh goodness, you were doing good just juggling family and a phone call. I only have 1 child that maxes me out.

My question is more along the lines of someone filing a claim because of a problem with your soap on the skin. In the few soapmakers I've talked to about this, none seem to be aware of any requirements from the company of what they must show to prove they did everything they were supposed to. Like documentation of ingredients....where they came from, how old they are, possibly batch #s from the supplier.

I'll be calling RLI soon because I'm about ready to sell. When I do, I'll find the answers I'm looking for. But in the meantime, I thought I'd prompt other soapmakers to make sure they also know what they are required to do to protect themselves from a claim regarding adverse effects from the soap.

Good luck with your soap business! Blessings.
zeo

 

[dirrdee]

that is an excellent quote, is that for a full year, 1/2 or 1/4? A previous business I had (not body care at all) was $1600 per year for a million dollar liability policy...so I am excited to hear it will be significantly less than I anticipated. Im getting ready to sell in another few months (outside my friends and family circle) and this is valuable information...thanks for sharing that with us.