Making soap can be a fun business idea, but it also has risks. You have to take care of that investment to grow your business, and putting insurance in place is a great way to ensure that.
This post discusses the different types of soap making insurance applicable to soap makers including the price, the quote and the necessary insurance coverage.
What is soap maker insurance?
Soap maker insurance is one of the insurance policies that is meant for individuals or entities who manufacture, distribute and sell soap-related products.
This insurance often comes with general liability insurance, product liability insurance and other active policies relevant to the soap making business which protects against potential risks.
Types of Insurance for Soap Makers
Liability Insurance for Soap Makers
Soap makers liability insurance fundamental for every business which is interacting with customers. In the case of soap makers it usually covers:
- General Liability Insurance: Liability claims for personal injury and property damage on business premises or resulting from the business’s products are included.
- Product Liability Insurance: Covers only allegations arising when any of the items sold by You causes injury to A person or damage to property.
Product Liability Insurance for Soap Makers
Soap Maker product Liability is important insurance coverage for soap makers as it serves the following purposes:
- Injured by Defective Products: If a customer is injured due to contaminated or improperly labeled soap, this insurance will cover the expenses to defend legal actions or payment of damages.
- Allergy Treatments: If the customer suffers from allergy to some of the ingredients in your soap, product liability insurance would take care of the medication and any legal attention required.
Why Do I Need Insurance for Selling Soap?
In most places, insurance is not mandatory for selling soaps. Nevertheless, it is strongly advised. Hence the following reasons may help you to sell soap with an insurance:
- Protection Against Liability Claims: What if a customer has an allergic reaction or gets injured because they use your product? Payment of litigation fees and settlements is where insurance may help.
- Business Continuity: Insurance can also be useful when there is a lawsuit or in the case of significant loss, as it will help keep the business afloat.
- Peace of Mind: having a contingency plan for unpredictable events helps you grow the business without the need to watch out for possible liabilities at all times.
Handmade Soap Insurance
It is designed explicitly for the artists who make soaps in traditional ways. This sort of policy generally combines few both general and product liability insurances, adding coverage layers for the potential risks involved with handmade products.
Costs of Soap Making Business Insurance
The price or cost of soap making insurance is depended upon a number of factors which include the following:
- Place of business: Certain regions have different rates because of the local laws and the associated business risks of operating in that region.
- Scale of operations: The size of your business including its annual revenue and number of staff employed can also influence the insurance premiums.
- Limit of coverage: You will also pay a higher premium according to the amount of cover you wish to have. As a rule of thumb, a general liability policy which has a $1 million limit will have premiums starting around $510 a year.
Here’s a breakdown of average costs from various providers:
| Insurance Provider | Average Monthly Rate | Average Annual Rate |
| Handcrafted Soap Guild (HSCG) | $31 | $369 |
| State Farm | $33 | $401 |
| USAA | $25 | $295 |
| The Hartford | $47 | $568 |
| Geico | $41 | $487 |
Get all the best quotes from leading providers in a click of a button!
Key Coverage Options for Soap Makers
When insuring your soap making business, the following coverages would be important for consideration.
Spa Business Insurance
In case you run a spa or do some form of cosmetic work along with selling soaps, then you may require spa business insurance as an added cover. Such plans are normally attached with general liabilities as well as professional liabilities specific to spa services.
Further Cover Options.
- Business Property Insurance: Business Property Insurance covers all your physical assets such as your stock or equipment from theft or destruction.
- Workers’ Compensation Insurance: Workers Comp Insurance is mandatory where you have staff, it pays for medical and compensative earnings due to an employee being hurt on the job.
- Commercial Auto Insurance: This will follow if you have cars that you use for the delivery of products.
Finding Quotes for Soap Making Business Insurance
Soap sellers are not legally mandated to have liability insurance since it is not a requirement. However, it is strongly recommended that sellers obtain such insurance.
Not only does it secure your monetary assets but it also improves the reputation of your business. For example, taking liability coverage increases the chances of more customers buying products from your business.
Help others make better decisions
Getting Business Insurance Coverage for Soap Making
Here is how to get suitable quotes for business insurance coverage for soap creators :
- Search on the internet: To get cheap prices look for different insurance companies and also look at their quotes.
- Look for Specialized Businesses: There are some companies which provide policies specifically tailor-made for such specialized businesses e.g. HSCG, which also keeps competitive rates.
- Quote Tools: Various business insurance issuers offer tools that help create a quote based on the information you provide to it.
- Book an Insurance Agent: Experienced insurance agents can provide advice as per your requirement and specifications.
Final Thoughts
Owning a soap making business can be a risky venture in terms of liability. Making soapy products necessitates the acquisition of specific soap making insurance policies. Ranging from general liability insurance to specific insurance coverage for soap makers, these policies are easily available and affordable.
For more information on how to get the best and cheapest quotes contact us or visit our website for assistance.
