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.
What is 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.
What does it cover?
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
How much does it cost?
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 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:
- Years of experience
- Types of products offered
- Annual and projected gross revenue
- Number of employees
- Previous insurance claims
Who needs it?
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.
Common claims scenarios
Frequently asked questions