Liability insurance

[Lindy]

I'm not going to tell you what to do when it comes to insurance mostly because you are going to do what you are going to do. It does influence my opinion of you though....

 

[LandedGentress]

Hi, I'm a newbie to the forum but I've been making mostlyMP soap for a year but make CP as well and I've actually refused to sell to a small boutique until I had all my ducks in a row and that most definitely means insurance.I have my vendors license and just formed my LLC but until I get my liability insurance through the soap makers guild there is no way I'm branching out further. Even if you label it, and yes, I get that if you don't make any claims beyond being soap that you don't have to label it, but if a lye pocket is in your soap or someone unaware of an allergy has a reaction, how will you protect yourself. If you're starting out, insurance may seem an extra expense, but so is tax softeware, incorporation and the licensing. Failure to do so could jeopardize what I'm assuming you've taken time to build. I can just say for me, NOT having it would be a pennywise pound foolish option in such a litigious society.

 

[Lindy]

Allergies are very important and I do have customers ask if x ingredient is in my soap. Or they will stand there reading the ingredients. Here in Canada soap is regulated as a cosmetic which means registrations, recipes submitted to Health Canada and packaging/labeling regulations we must follow. Full disclosure is so important when we're dealing with personal care products and yes even though it's a was-off product it's a personal care product which is used in very sensitive areas. Try to imagine using soap that was lye heavy or had a lye pocket on your bits. That is why you have insurance.

There are also fragrances that will irritate the bits and many are essential oils. So if you make a soap that will set things on fire and you don't have a BIG warning on there, you can be sued. A child eating the soap is less of a problem than what I've just described. A child nibbling on soap is going to quickly be a self-correcting problem.

 

[VanessaP]

I have had friends and family begging me to sell for the last 6 months. I have refused because I didn't feel confident in doing so when they started telling me I should and while I am plenty confident to sell now, I also waited until I can afford the insurance through the guild, which I will be purchasing my pro membership soon. Keep in mind that if you end up getting stores or even chain stores wanting to wholesale your products, they will likely require that you have proof of current insurance.

 

[judymoody]

I got liability insurance because I donate soap to fundraisers and if money changes hands, liability could make its way back to the producer even if I didn't profit personally.

Seriously, it's so cheap. Why be penny wise and pound foolish? My RLI policy is less than $150 per year.

 

[aroma]

But Judy, they wont cover you if you make tarts or candles, will they?

 

[judymoody]

Nope, no candles. But I thought the OP was concerned about soap only?

 

[Scentapy]

I just talked to a broker today that gave me a very rough estimate of $300-$400 a year. I didn't know it was that cheap! I told her not to hesitate to get the ball rolling. That is FAR to cheap NOT to get it. I work to hard for my house, my cars, etc. to lose it to someone sue happy!

 

[Lindy]

Good on you!

 

[Scentapy]

Ok... so I am waiting for the actual quote. Should be getting it tomorrow. Like I said.. the woman at the insurance agency that I talked to said it was like $300 or $400 BUT that was a very rough estimate. I just talked to my friend tonight that has insurance for her candle business and she said she is paying $985 because she had to be listed as a manufacturer. Wouldn't I also have to be listed as a manufacturer because I make bath and body products? Ugh.

 

[Lindy]

You are a manufacturer.....