Soap Maker Insurance

Soap Maker Insurance

If you produce or sell soap products, it’s important to protect yourself against the potential risks of running a business with soap maker insurance.

Zensurance - Soap Maker

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Soap Maker

Insurance for soap makers

Handmade soaps bring joy to customers and soap makers alike – especially those with organic ingredients or elaborate designs. They can be therapeutic to produce, a popular gift-giving idea, or an inexpensive luxury for your customers.

While soap making doesn’t seem like a hazardous venture, many things can happen beyond your control – potentially leaving your business in a financial predicament. That’s why it’s essential to protect yourself, your customers, and your business with soap maker insurance.

A soap maker insurance policy package protects soap makers against the risks of making, distributing, or selling soap. It provides coverage for product and liability-related accidents that cause losses such as third-party injuries or property damage.

Soap maker insurance combines several insurance policies to provide comprehensive coverage. Typically, you can expect soap maker insurance to include the following coverages:

  • Commercial General Liability Insurance (CGL): CGL covers your business against general risks that you may encounter, such as third-party bodily injury or property damage. For example, say you’re selling soap at a local craft fair, and a beam from your tent falls and hits a customer on the head. Should the customer file a claim against you, CGL could cover the medical fees and legal expenses, regardless of the lawsuit’s outcome.
  • Product Liability Insurance: Product liability coverage is extremely important for soap makers. This policy can provide financial protection should a customer allege that a product you sold, distributed, or manufactured caused bodily injury or property damage. Damages ordinarily covered by product liability are usually the result of a design, manufacturing, or marketing defect. For example, Product Liability Insurance could provide financial protection if a customer claims your soap stained their expensive bathroom counter, and the soap didn’t come with warning labels to warn against leaving it directly on a surface.
  • Commercial Property Insurance: Whether you have a workshop for soap making or you create soaps in your kitchen, commercial property insurance protects your business property from an insured event such as a fire or theft. Suppose your home business is broken into while on vacation, and a significant amount of your inventory was stolen. Commercial property insurance would cover the cost to replace the stolen products.
  • Cyber Liability Insurance: If you sell your soaps online, cyber liability could cover the costs associated with cybercrime involving your technology systems and customer data. For example, say your e-commerce site experiences a data breach, and the hacker holds your customers’ data as ransom. In this case, cyber liability insurance may provide coverage for legal fees and damage-related costs associated with the incident

The cost of an insurance policy is dependent on a few additional details about your business. However, soap maker insurance typically starts at around $510 per year for a CGL policy with a $1M coverage limit.

When you complete an online application with Zensurance, we’ll ask questions about your business that will help us determine what coverage you should have, and in turn, we can calculate how much your policy could cost. Here are some of the main factors we take into consideration:

  • Location
  • Years of experience
  • Types of products offered
  • Annual and projected gross revenue
  • Number of employees
  • Previous insurance claims

Yes, soap makers should protect themselves and their businesses with an insurance policy covering the risks involved in making and selling soap products.

At Zensurance, we’ve helped more than 100,000 arts and crafts entrepreneurs, including soap makers, protect their businesses.

Getting insured is quick and easy!

Complete our 5-minute online application for a free soap maker insurance quote.

Common claims scenarios

house fire

Problem: You keep your inventory and soap making equipment in a wooden shed in your garden. One night, a lightning strike caused a fire that destroyed the shed, the soap making equipment, and thousands of soaps ready for sale.

Outcome: Your commercial property insurance covers the $5,000 for your loss of stock and equipment.

soap bubbles on hand

Problem: A customer purchased a soap for her family to use. A week later, they allege that their child had a severe allergic reaction to an uncommon ingredient in your soap. You didn’t provide an ingredient list during the sale of the soap.

Outcome: Your customer successfully sues you for negligence to inform them of the ingredients. Your product liability insurance covers the $10,000 medical costs.

customer walking in soap store

Problem: You own a small soap shop. While a customer is browsing your selection, they slip on an unattended spill and severely hurt their ankle.

Outcome: Your customer suffers from a sprained ankle and successfully sues your business. Your commercial general liability insurance covers the customer’s $2,000 medical expense.

Frequently asked questions

Does my insurance cover soap products sold on third-party marketplaces?

Yes, absolutely. Your Soap Maker Insurance can cover your business should you sell soaps in-person, on your own website, or on third-party websites (e.g. Amazon, Etsy).

Will Soap Makers Insurance cover other products that I sell?

Yes, other products may be covered under your Soap Maker Insurance policy. Soap-related products could include lotions, cleansers, lip balms or everyday skin-care products. To ensure you are adequately covered, be sure to mention your entire product to your broker.

Do I still need insurance if I just teach soap making?

Yes, you will still require insurance, but some of the insurance policies will differ from those listed above (as Product Liability coverage is for selling/producing soap products). As for soap-making instructors, we recommend including Errors and Omissions Insurance as your business provides a service.

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You’ve dedicated your professional career to your passion; you deserve a broker that’s passionate about protecting your business. 

Your business is worth getting the right coverage to protect it from the unexpected. Start your online application today and leave it with us to find the best fit for you