This is part 3 of the Starting Your Candle Business series. If you haven’t already, please be sure to read part 1 and 2!
You’re ready to kick off your candle business, but there’s one lingering question…..
Do I need insurance for my business?
The best answer is YES. Do you legally HAVE to have it in the United States? No. But, it is definitely recommended that you get some liability insurance just in case.
Can you imagine going along in your business, building it up, things are going great, candles are flying out the door, the money is rolling in. Then, someone starts a fire in their home while using one of your candles…..
Well, it’s their own fault, you say, and I had a warning label on the candle, you say.
That may be true, but they could still take you to court and even if the judge rules you are not at fault, you still have all those legal fees to pay for and that alone could cripple your business and even hurt your personal life!
Now imagine that were to happen when you are still trying to get your business off the ground and you aren’t making much money yet! Yikes!
So, really, it is very important to get some insurance for your business. I am hoping that by writing these articles on starting your candle business, that you will be able to get off to a great start and be able to pay for that insurance with the profits from your business fairly quickly.
What if you sell only tarts/wax melts or flameless candles?
From doing some research, I’ve come to the conclusion that wax melts, at least, could be looked at along the lines of soap, although maybe not quite the way soap is, since you are not using the melts on your skin. There is still the risk of someone’s child putting them in their mouth, or even someone getting a rash from handling the melts, who knows! There definitely is not the high risk like candles with a flame, but there is still risk, as with anything. You would need to decide whether you are comfortable taking that risk. You might find, however, that it could be easier to find business liability insurance for flameless, non skin care products such as melts, but that is something that each insurance company is probably going to differ on, and you’ll need to discuss with your agent and see if they can work something out.
How much is business insurance for my candle business going to cost?
I was able to contact a few insurance companies that actually will at least consider covering candle makers. The ballpark figure I got? $500-$1000 a year. Now, the cost is going to depend on lots of different factors about your personal business, so in order to get an accurate quote, you will need to contact an insurance agent yourself. That way they can look at your specific needs.
Apparently Farmers will cover candle makers, and I’m sure you can find an agent in your area since they are a very large insurer.
Here are the insurance companies/agents I contacted that do provide business insurance for candle makers. I may add to this list as I hear of others:
Agent: Andrew Core
Insurance and Financial Solutions Registered Rep
Farmers Insurance Group
260 E 15th Ave Suite D
Eugene, OR 97401
Agent: Lori Paul
Business Insurance Solutions
107 West Q Street
Springfield, Oregon 97477
Here are a couple other places that offer insurance specifically to crafters, soapmakers and candle makers:
- Indie Business Network– Seems to be a good one from what I’ve heard from some other candle/craft makers. The insurance carrier is Great American Insurance Group and the broker is: Veracity Insurance Services, Inc.
Here is a price quote from the Indie Business Network website:
“$1,000,000 annual aggregate coverage is $398 per annum, or $2,000,000 annual aggregate coverage is $453 per annum. Additional premiums will apply for larger companies and for those requiring additional coverage. Product liability insurance is a benefit of membership in Indie Business Network, and the two items are separately prices. Membership is $150/year.”
- Insureon The link takes you to a very informative article about the different types of insurance for crafters/candle makers. You can fill out a form online to get a quote too.
I hope this is enough info to get you started! I am hoping to do more research on insurance companies and maybe create a directory eventually. But what I would do, if I were you, is start with the companies above if you can, and get a solid quote. Also be sure to look up local brokers and see what they can do for you. Write down any questions you have ahead of time so you can be sure to ask them when talking to the insurance agent.
Be sure to shop around, take the time to get the best quote with a company you feel comfortable with!
Do you have liability insurance for your candle business? If so, I’m sure everyone would love to hear your experience and who you go through for insurance, so post about it in the comments!