Teach Soap

Good morning! I'm new to soap/lotion making and to this forum. I've started making stuff for myself and have some friends that would like me to make it for them too. I have even thought about making some items to sell to raise money for our next adoption. I came across a post here on insurance and have to admit it NEVER crossed my mind.... I'm a bit bummed. I can't imagine how much I would have to sell to cover insurance and supplies. How do those of you who sell make money??

Disappointed in LA,
Charlene
dh Troy
dss Connor (13) and Jacob (11)
dd Shaohannah (5, a. 11/20/06 Kunming)
dd Grace (4, a. 12/30/08. Jiaozou via SFCV)
www.themiracleofthemoment.blogspot.com
Check out the special children at Shepherd's Field Children's Village who need sponsors! www.ChinaOrphans.org
http://www.justlovecoffee.com/SFCV -- a site to purchase coffee and make a difference. Every purchase earns money for SFCV!
http://www.barefootbooks.com/marketplace/19262/ --check out their neat books and help SFCV!

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Blessings,
Charlene, helpmeet to the most amazing man and mother of 4 awesome children
www.ChinaOrphans.org, http://www.justlovecoffee.com/SFCV

Liability insurance is a must. If you sell under $5,000 per year, consider RLI.

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Irena
Closed minds are like faulty parachutes; they refuse to open.

I just started my company last month, and don't have the profits to buy insurance yet, either... I registered as an LLC (it's about $225 here in WA) that secures my company's status as "Limited Liability". That doesn't protect you if someone sues, but it means that they could only sue for the assets of the company. It doesn't protect you as an individual in every situation, though---you aren't protected if fraud is involved. Meaning that if someone gets a rash from one of your soaps and you neglected to mention there was soy powder in it, they could sue you rather than the company.

There are some loopholes like that to being an LLC, so you have to weigh the risk vs. the cost. For me, insurance isn't even an option, I'd go under in a month! But I'm drafting and redrafting my contract to make sure its solid, and once it is done anyone who buys off of my website will have to click "agree" when they make a purchase. Also, of course, any wholesale agreements will involve a contract.

I hope this helps! Good luck!

I am a walking, talking pessimist, so I never considered not getting it lol Unfortunately, you need insurance for just about everything in life. Have you considered getting it thru the handcrafted soapmakers guild? It's pretty affordable as far as professional insurance is concerned, plus you get member benefits. =) Good luck!

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AubreyEApothecary.com
facebook.com/AubreyEApothecary

I have a contact at a brokerage that is writing coverage for candle & soap makers that includes products and completed operations. They can write in every state except KY, IL & the US Virgin Islands.

The policy is written with Lloyds - a basic policy is starting at $200-$300 per year with a max gross sales limit of $100,000.

If anyone is interested email me at terim@ridgwayins.com and I can send you the application.

FYI.... I'm currently and agent and have been in the field for about 20yrs now.

here are the minimum premiums:

with a $300,000 liability limit - $235. / $500,000 - $265. / $1,000,000 - $300.

of course these are just minimums and any additional coverage that are added would add additional premium.

the $1,000,000 limit includes business personal property on/off your premises - this would come into play for craft shows & farmers markets

TeriM

Currently, I am in IL, so I guess I'll wind up with the HSG. I could be hopping back and forth across the Mississippi for a while, I need something fairly flexible.

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Just living is not enough. One must have sunshine, freedom, and a little flower.
Hans Christian Andersen
www.etsy.com/shop/AngieLady
Sunshine Bath & Body

this policy would cover you where ever you go to sell - the just aren't licensed to write in those few states if that's where your store/home is .....

_________________
Just living is not enough. One must have sunshine, freedom, and a little flower.
Hans Christian Andersen
www.etsy.com/shop/AngieLady
Sunshine Bath & Body