You have homeowners/renters insurance. You have car insurance. Should you get business liability insurance? While it's not required by law, we still recommend it.
There are several advantages to getting your bath and body business insured. First and foremost, it protects your family’s assets in case anything goes wrong. If you apply for a loan, your bank usually requires insurance. They want to ensure they get repaid no matter what happens with your business.
Another reason we recommend insurance is because people can sue or claim damages for anything and everything. If someone slips in the shower using your salt scrub, they can claim it was because of your scrub. If someone uses your soap and decides it caused the rash they developed the next day, they can claim damages. They may not win a possible lawsuit, but dealing with the issue takes a lot of time and legal fees.
Finally, if you experience something like a fire or natural disaster, your business property may not be covered under your homeowners insurance.
There are options for every business, even if you're selling at a small scale. Find some of our recommendations below.
NOTE: Information accurate as of Jan 18th, 2024.
Homeowners insurance
Some policies cover small businesses that you operate out of your house up to $5,000 in sales. Make sure to clarify with your insurance agent what coverage they provide, and make sure that they are clear on what you're manufacturing and selling.
RLI
This company offers business insurance for home crafters. The pricing varies based on what you're making and selling, and how much liability coverage you want. Generally, they cover up to $7,500 in retail and wholesale sales. They don't cover candle makers of any type. Soap makers have told us RLI is reasonable, and they like the ability to purchase different levels of coverage.
Indie Business Network
IBN provides a group policy that's designed just for soap, candle, and toiletry makers. You do need to be a member to access the coverage. The fee is $275 per year for $1,000,000 in aggregate insurance for product liability. You can buy an additional $1,000,000 in coverage for $55 more. The policy also includes a $100,000 coverage for damages for rental premises and floating product coverage if you travel to craft shows.
Handcrafted Soap and Cosmetic Guild
They offer a group policy for soap, candle, and toiletry makers. Like IBN, it's only available with a membership. You can get up to $2,000,000 in general and product liability coverage. They offer a minimal coverage option for $285 a year and a standard coverage option for $390 a year.
HandMade Artisans Insurance
The Handmade Artisans Insurance provides business general liability coverage, including product liability coverage to artisans who make their own products by hand. This includes soap, lotion, and more. They have two options - $285 per year for up to $1,000,000 and $385 per year for up to $2,000,000.
Just like you wouldn’t drive without car insurance or live without home insurance, protecting your bath and body business with the right insurance coverage makes sense. It gives you the peace of mind to focus on what you do best – creating exceptional products. Insurance might seem like just another expense, but it’s an investment in the safety and security of your business, your hard-earned assets, and your future. In the unpredictable business world, having that kind of assurance is priceless.