Here is the basic information you need to get you started looking for a proper insurance policy that fits your small business needs. You may decide that general liability insurance is the right choice for you if you want to take your art out into a sellers platform.
Video Time: 4 Minutes 22 Seconds
In this video we will discuss what kind of insurance you may need to get your small business up and running, what it will cover, and where to look to find policies.
Insurance for your Artisan Vendor business.
Insurance coverage for vendors and hand crafted items. You might be wondering at what point in your soaping business
that you will need to get insurance, and you might be avoiding it for as long as possible to avoid business costs that exceed your small
profits, especially if your only sell at a local farmer's market, or maybe just online.
It's really common that when artists start out they aren't plowing into a business but are happy to
sell a few pieces just so they can by more craft supplies and keep their hobby going. If that's what you have in mind
for your soap sales, then insurance might be the last thing on your mind.
You probably will never have a situation where someone wants to take action against you for selling them soap
that has been made in your home.
I have never hear of it, and the most realistic situation I can think of would be if someone has a nut allergy and
you use maybe almond oil in your bar that has oil floating in the bar, and some one has an allergy. Remember,
one thing that does happen in your kitchen that doesn't happen in a factory, is that your kitchen aid you use to mix
butters and oils is also used for other products. So there could be contact with something that someone has an allergy to.
Although I've never heard of this happening in real life, someone only needs to make this claim for t to become a burden in your life,
and if something like this should happen you'll probably be wishing you had some insurance to cover you from this sort of thing.
It's worth mentioning that if you want to join a state fair as a vendor or a Renaissance fair, it is written into their contract
that you must have insurance to be accepted into those venues.
The good news is that this kind of insurance isn't all that expensive, and you an typically find a fine policy with plenty of coverage
for around 200 dollars a year. It's a one time purchase, and then after that you don't need to worry about it for a year.
The policy you want to look for is a general liability vendor insurance policy. Some sales outfits will word it
as crafter's insurance, hand made craft insurance, soap maker's insurance, but basically its a general liability policy.
Typically, what this means is that you are covered if someone files an accusation or complaint against your product, it doesn't necessarily
cover any losses from damage to your inventory. You need to look over all the details and information when shopping for a policy and makes
sure this is clarified, so that you completely understand what you are buying.
You will have to read the details of each companies policy to get the specifics, but as a general idea
you can buy an insurance policy that will cover you for one million, or two million dollars. Some places will require a larger
policy like if you're selling to big grocery stores, other places, like the state Renaissance fair may require a smaller policy.
Down below are links to companies that will sell you an insurance policy. I am not affiliated in any way with these companies, so
which one suits you best will depend on service they have to offer you and what your specific needs are. I would recommend that you
browse through them, and if you feel like you need more information, don't stop with these companies. If you already have
insurance for other businesses or other types of coverage, you might find that the company you already have will
offer you a discount, so in this case due diligence is really personalized.