We’re seeing more and more customers starting their own soap making businesses. It’s a branch of handmade cosmetics focused solely around handcrafted artisanal soap products.
However, turning a wholesome hobby into a viable business venture isn’t completely straightforward. You need to consider production methods, branding and marketing, and insurance requirements.
Why do you need insurance for your soap making business?
You need insurance for your soap making business no matter where you sell your handmade crafts. This is because claims made against your business, even for things which initially seem relatively minor, can leave you in financial ruin.
Your soap making business exposes you to a number of unique risks such as allergic reactions to ingredients, as well as all the common standard risks of selling your crafts. A comprehensive craft insurance plan enables peace of mind, so you can focus on what you do best: crafting.
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What type of insurance do you need to sell handcrafted soaps?
Public liability and product liability insurance are the two main types of insurance you’ll need when selling handcrafted soaps. On top of these, there are also insurance types of cover you may need, including employers’ liability insurance and business equipment and stock cover, depending on the structure of your business.
Public liability insurance
This is required if you intend to sell your products in a public place, or physically interact with members of the public in any way. This could be selling in a physical storefront, craft fairs, and more.
Public liability protects against compensation claims resulting from things like a customer tripping over your display, or damaging part of your setup.
Product liability insurance
Product liability is non-negotiable. It covers against claims of damage or injury caused by your product or its packaging. With handmade soap, this could be allergies, irritation, or even faulty packaging causing harm.
Employers’ liability and business stock and equipment
Employers’ liability is legally required if you employ any members of staff, or even accept help from volunteers. This provides cover if these individuals are harmed, or their property is damaged whilst they work for you.
Business stock and equipment insurance will cover the cost of replacing your essential goods, stock, and machinery if they are lost, stolen or damaged. It’s usually an optional extra on craft insurance policies.
FAQs about insuring your soap business
How much does insurance for a soap making business cost?
The cost of insurance for a soap making business may vary based on the size of your business and how you operate day to day. The quickest way to determine how much you’ll be paying for comprehensive cover is through our craft insurance quote calculator.
Do you still need insurance if you make and sell soap at home?
Even if you solely make and sell soap from within your home, it’s still highly recommended to seek an insurance plan. Your products will still be sold to members of the public, meaning you’ll need product liability protection at the very least.
How quickly does insurance for a soap making business become active?
Your insurance is effective the moment your application is confirmed, which often takes just a few minutes. Whether you use our streamlined online system or discuss your craft requirements with our expert team, we ensure your bespoke, detailed policy is ready without delay.
We also deliver your essential documentation immediately. This allows you to provide proof of cover with total ease, ensuring you are fully prepared for any upcoming craft fairs or events.
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