Liability insurance

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SpiralTouch

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I've read a lot on here about liability insurance and recommendations to get 1 million in protection.

My question is this - if the market/venue where you sell your soap does NOT require any insurance (only a vendors license) would you still buy it ? The market where I plan to sell in the future does not require it.

If your soaps are labeled with ingredients, how could someone try to sue you? If they are allergic to something then it is their responsibility to look for that (ex: coconut) on the label - not grounds for a lawsuit. (?)

I know that legally you are not required to have liability insurance to sell soap.. And soap doesn't even legally require labeling.

Thoughts please.
 
This is just me, but I plan on getting it because I dont like the feeling of "what if." I have too much at stake to lose to some sue happy joe shmo. Im not really a risk taker and would rather be safe than sorry. Getting insurance is actualy the only thing holding me back from opening my Etsy shop and selling my soap at boutiques/stores. I plan on getting it within the next week or two. then again,....this could be the worrywart in me lol :x
 
I totally understand the concern.. But how could someone legally prove your soap (other than an allergic reaction) caused them harm? Wouldn't the only reason for harm be an allergic reaction to an ingredient? And that is not your fault.

It just seems highly unlikely someone could successfully sue over it.
 
Does anyone know of anyone who has been sued? I have insurance because I too am afraid but I really wonder if it happens ever.
 
I totally understand the concern.. But how could someone legally prove your soap (other than an allergic reaction) caused them harm? Wouldn't the only reason for harm be an allergic reaction to an ingredient? And that is not your fault.

It just seems highly unlikely someone could successfully sue over it.

You're not American are you? We're a sue happy people.

;)
 
In Canada my understanding is that it is a requirement. With the Guild (www.soapguild.org) you can get insurance really, really inexpensively. I think it's $400 for a year. You do need to be a member of HSMG but it is so worth it!
 
I've read a lot on here about liability insurance and recommendations to get 1 million in protection.

My question is this - if the market/venue where you sell your soap does NOT require any insurance (only a vendors license) would you still buy it ? The market where I plan to sell in the future does not require it.

If your soaps are labeled with ingredients, how could someone try to sue you? If they are allergic to something then it is their responsibility to look for that (ex: coconut) on the label - not grounds for a lawsuit. (?)

I know that legally you are not required to have liability insurance to sell soap.. And soap doesn't even legally require labeling.

Thoughts please.

I got insurance trough the handcrafted soapmakers guild because I wanted to apply for a booth at a market that did require insurance. I am already a vendor at our towns Farmer's market, and they do not require insurance (just a California sellers permit).

I decided not to vend at that other market, so I feel like I wasted the money to get insurance. Why? because as you explain, there is no reason for lawsuits. I have been making soap for a while, and I do not see ever making lye heavy soap, and much less putting lye heavy soap for sale....my soaps are over labeled (I just use FDA label regulation even though FDA does not regulate soap). I decided to label all the EO oils I use since I have encountered so many EO allergies from folks that peruse my booth. The fragrance is labeled as 'fragrance' and if folks tell me they have sensitivities, I point them to my unscented soap basket.

I have also decided to pick up more small wholesale accounts, from folks that know me, and know that if there is any problem I will make it right. I will only continue doing the one weekly market (that does not require insurance). I do not want to do another market. So when it is time to renew my insurance I will let it drop (expire). I know that someone 'could' sue me, but in the particular environment where I operate and sell soaps, this is so unlikely.

My response will probably not be popular, but the cost of insurance really ate into my profits, and I rather spend the money in EO, better tools and more carrier oils. I did not sell enough soaps last year to justify that cost, but even expecting to do better this year (sell more) I still don't think I will renew it. Unless of course, something really changes in my business.
 
Green Soap the only other caution I would give you is that not having commercial liability insurance can void your home insurance if they catch wind that you are making and selling soap. Do I understand it? No. But I can tell you that it is how it works. Each and every year I have to prove I still have my liability insurance in place. And if something happens that is caused by soap making you won't be covered. For whatever reason home insurance does not like this or candles as they feel the liability is significantly higher than other craft businesses.

We each have to choose for ourselves what is best for us and what risks we are prepared to take. I have never heard of anyone being sued over soap, but it doesn't mean it can't happen.
 
Remember the story of the elderly woman that bought coffee from McD's, spilled it on herself and sued McD's?
The lid wasn't on tight and because it didn't say "HOT" anywhere on the cup,,,,well there ya go.

Forewarned is forearmed.
 
Just because you haven't see any active lye in your soaps, you never know if there will be in the future. Someone can sue just because the colorant you used in your soap left a stain on their tub, ridiculous as that sounds. You just never know when someone will sue you. Its like car insurance. You may never be in a car wreck, but its nice to know its there for you if you are.
 
Here is a good what if. Suppose you sell a bar of soap with someone with young child. It looks real yummy and kid eats some and ends up in hospital. You get sued for medical bill. Yes, there have been law suits not many but they have happened.
 
That is actually the reason that soap that resembles food is not allowed in the UK. There are lots of of soapers of course that don't follow this directive but that's true everywhere isn't it.
 
But how could someone legally prove

Do you want to find out how? Cause I don't.

Your business/house/cars/possessions are all at stake when you're selling. Buying insurance is your choice.

Just like Vanessa said - I haven't had any major health problems or accidents yet but I still have health insurance because I don't want to lose everything if something happens.
 
Here is a good what if. Suppose you sell a bar of soap with someone with young child. It looks real yummy and kid eats some and ends up in hospital. You get sued for medical bill. Yes, there have been law suits not many but they have happened.

So I could sue Dove soap for example if my kid ate some? I don't think that's how it works
 
Hmmm, seems I've seen this same subject on another soap forum though it wasn't as "friendly". I think it boils down to what risk one is willing to assume. It's probably true, a court case could most likely get thrown out BUT by then you've lost work time, perhaps lawyer fees, etc. My time is too precious to be taken away by some sue-happy individual; even one without a valid suit.
 
Thanks for everyone's thoughts on this! I won't be buying insurance for the time being. Maybe if I ever 'go big' but that's unlikely.
 
I got insurance trough the handcrafted soapmakers guild because I wanted to apply for a booth at a market that did require insurance. I am already a vendor at our towns Farmer's market, and they do not require insurance (just a California sellers permit).

I decided not to vend at that other market, so I feel like I wasted the money to get insurance. Why? because as you explain, there is no reason for lawsuits. I have been making soap for a while, and I do not see ever making lye heavy soap, and much less putting lye heavy soap for sale....my soaps are over labeled (I just use FDA label regulation even though FDA does not regulate soap). I decided to label all the EO oils I use since I have encountered so many EO allergies from folks that peruse my booth. The fragrance is labeled as 'fragrance' and if folks tell me they have sensitivities, I point them to my unscented soap basket.

I bought some milk soap in MT and it was lye heavy...burned when I used it but at the time I didn't understand what was causing the problem. I don't have insurance but I test every batch and cure it at least 7 weeks. I also list ingredients on the label.
 
I agree with Vanessa. It is similar to having car insurance or homeowners insurance. I've never been in a car accident and I'm an incredibly safe driver. But what if something happens? It would be incredibly irresponsible on my part and to anyone else involved, if I didn't have insurance.

I've said this before, I'm not a sue happy person and have never sued anyone. But if my child was harmed due to someone's product, I would absolutely sue to make sure that the medical expenses were covered. I don't care if you're a small home business just trying to provide for your family or if you are a big time billion dollar company, the well being of my child trumps your issues.
 
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