To sell or not to sell...

[AliOop]

Excellent points, Carolyn! For those in California, the cost of basic soapmaking insurance plus an additional umbrella policy is usually far cheaper than the ongoing cost of an LLC or S-Corp, and will offer so much more protection to the typical maker. Other states may offer less expensive LLCs, but if I had a limited budget (which most of us do), I'd still invest my money towards insurance first. But everyone's situation is so different - talk to your tax professional and if needed, business lawyer, too.

 

[Mommawolfe]

I do not have assets (unless you consider my 2004 chevy colorado an asset....TAKE HER IF YOU MUST lol)

I used to not have insurance because I was selling small scale, like friends and such. Then I had one girl approach me one day that she "scratched the [heck] out of her arm from the shell on top of the soap". "Ummm..the shell is made of soap and what kind of special person physically injures themselves with soap." she assumed the shell was real and ran with it. Her husband confirmed that she did not hurt herself with the soap and in fact loved it. Sparing you most of the details ... Her arm had no scratches on it, and I shoved $8 down her shirt to return the money lol. I have so many words for this type of person. Not worth it.

ok I have to edit here...I have known this girl and her sister for 14 years...this wasn't a random customer that I had this encounter with LOL. I wouldn't shove money down a customers shirt if they weren't happy LOL

Anyway. That very day was the day that I decided to purchase insurance for my soap. And it opened up avenues for other selling, mostly small scale so far because that is all I have time for. But at least I have peace of mind that nobody is going to make a claim on my colorado LOL.

Hiscox is what I have. They let you put a small down payment and pay monthly installments.

I have Liberty mutual. $44.00ish a month, worth the peace of mind! Because it is a "manufacturing" process, it isn't the easiest insurance to find. At the time I got the insurance, Liberty was the only one that would insure soap making, so, i have stuck with them.

 

[maxine289]

Hiscox

One of my goals for 2022 is to get my insurance in order. I have business insurance thru Erie, which is does my home owners policy, but I'm researching to see if there is better coverage available. I called Hiscox and was told that they do not cover soap or candle makers because that is considered manufacturing. Has anyone run into this issue with trying to obtain insurance?

 

[AliOop]

Have you looked at HSCG?

 

[maxine289]

Have you looked at HSCG?

I am doing that now. I requested a copy of the HSCG policy so I can see what the coverage provisions are.