# Liability insurance



## goat girl (Dec 11, 2007)

My soap is starting to take off with selling--Yeah! Thanks Christy for all your help! :biggrin

But here is the question--I am selling most of my soap wholesale. One store that is interested in carrying it says that I need to have liability insurance for them to carry it. I am researching prices for this. But has anyone else ever encountered this request? 

Obviously, if it is to expensive to carry insurance I will decline selling it in that store, but what have your experiences been with selling wholesale?

Christine


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## Guest (Feb 10, 2009)

It is generally very expensive here in michigan.. don't know what it would run you in your area.. 
I have never had it, it would take all my profit from me.. which is not going to happen.. 
I sell wholesale to a few stores, I have never been ask about insurance, but laws may differ in different areas
Sorry I cannot help you more than this..
There was at one time a soapmakers guild on the net, that would help soapers get insurance.. I cannot remember where and I do not have a link.. You might want to find another soaping forum and ask on there.
Barb


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## jimandpj (Mar 11, 2008)

If you join the handcrafted soapmakers guild, ($480) you get liability insurance with it. There are details on the website at www.soapguild.org

PJ


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## hsmomof4 (Oct 31, 2008)

Was talking with Christine (the OP) about this the other day. One quote she got was approx. $1k annually. Now, $480 annually is a lot less than that, but it's still a LOT of $$. How much soap would you have to sell to be able to afford $40/month on insurance? (I'm thinking a fair amount.)


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## jimandpj (Mar 11, 2008)

Nobody likes to pay insurance, but if you ever need to use it, you sure are glad that you did. And if you're working your soap as a business, it's not that difficult to profit $40 a month selling soap. 

Other than that, unless it's required, a lot comes down to how comfortable you are with risk.

PJ


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## Bella Star (Oct 27, 2007)

..... and that's why I dont sell to the public ! There are sooo many crazy people looking for $$ .


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## jimandpj (Mar 11, 2008)

That's why I got the insurance. The chances of ever needing to use it are very small, but I sleep a lot better knowing that if some crazy person sues me b/c he got soap in his eye, I at least have some protection. 

PJ


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## SherrieC (Oct 26, 2007)

I pay $ 129 a year for 1 million dollars in coverage, on my business local, and my home local. That covers me till I start selling more than $ 30,000 a year then my cost goes up. Pekin Ins Ill


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## goat girl (Dec 11, 2007)

Thanks for the info--
According to a lawyer friend of mine, by forming my business into a LLC (Limited liability corporation) that will keep my business profits/expenses separate from our home savings. So, heaven forbid, someone sue me, they could get my business money but not our home money. Of course this means keeping detailed records. Though I am going to look into the insurance Sherrie mentioned above. do you know if this is only available in Indiana? I haven't heard the name Pekin Ins. before. I'll have to google it.
Thanks
Christine

Christine


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## SherrieC (Oct 26, 2007)

no they are located in Illinois I think.


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