Ensuring yourself that you are insuring yourself

Insurance, it is up there with accounts with my least favourite subject, however, much like accounts this is also a vital part of your business. I hate forking out money for something I cannot physically see and will hopefully never need to use. I am not proclaiming to be an expert in this subject by any manner or means, this is just my observations as I continue on my soaping journey.

So is it really that vital?

Simple answer, yes. This is your safety net should anyone claim against you.

Let's give you an example, you give/sell a couple of bars of soap to a family member to try out. Being a supportive family member they pass one to a friend trying to help you expand your business. The friend takes an allergic reaction to an ingredient in your soap and are admitted to hospital (this is an extreme example). They lose income from their job due to the time they have had to take off work. (Labels should note all ingredients and warnings, including any ingredients that may cause allergies, but whether they read the label before use is another matter entirely.)

In an increasingly claim orientated culture, this person may decide to claim their earnings back. Who are they going to claim these earnings off? Yes, that would be you! This is where your insurance is your safety net.

Not only does the insurance offer you the financial safety net but they can also offer legal advice included in the cover.

I work from home, surely my home insurance covers me?

Well, this is what I naïvely thought. I would strongly suggest checking with your home insurance provider. When I checked with my provider, although initially it was thought at a small cost this could be included, after being referred to the underwriter, it was deemed too high risk and they were unable to cover for public and product liability.

So, what does public and product liability cover?

Depending on the policy you take out, it can cover against claims and legal advice, as mentioned above. It also covers all your products and equipment, this includes your ingredients, moulds, laptops, PCs etc if it is to get damaged or stolen.

Where do I go to get public and product liability cover?

I shopped around to get a good quote that covered what I was looking for. There are a number of companies that offer this, below are a few examples of companies that can cover a handmade soap business.

Ian W Wallace - An insurance scheme designed specifically for individuals, partnerships or companies making handmade soap in the UK and Ireland. The scheme is underwritten by the Aviva Insurance Limited.

Combined Market Traders Insurance Association - Claims to be one of the largest providers of public and product liability insurance for market traders all over the UK.

Craftcover - Specialise in developing insurances for niche areas by arranging bespoke covers designed specifically to suit the customer.

Simply Business - Liability cover for your business with a special policy for online sales.

Can I get advice from someone neutral on which insurance company is best fit or me?

The Guild of Craft Soap & Toiletry Makers also offer good advice on insurance companies. Once you have had your product safety assessed, registered on the CPNP portal and have your public and product liability insurance, I would recommend joining the guild. It is free to become a member but also gives you a wealth of resources and visibility as a company who follows all EU legislation.

Ensure yourself that you are insuring yourself

Yes it is not the most exciting blog post ever, and yes, some people may disagree with me and decide not to get insurance but it is a risk that I was not willing to take. For a small amount each month, I not only get insurance but I also get peace of mind. I hope that this article will help, more than hinder, those on their own soap making journey.

Please feel free to leave me your comments, happy soaping!