Tyler Brooks
If you're planning to sell candles, you may want to consider getting insurance. While it's not a legal requirement, it can protect you from potential risks such as claims, damages, and financial losses. The type of insurance you need will depend on your business structure and sales channels. For example, if you sell candles from your home, your homeowners' insurance may not cover business activities, so you might need a separate policy or an add-on to your existing plan. If you sell online, you may need different coverage than if you sell in-person at events, markets, or pop-ups, where organizers often require vendors to have general liability insurance. This type of insurance covers third-party personal injuries and property damage, which is especially important for candles due to their hazardous nature. You should also consider business interruption insurance and commercial auto insurance if you use your vehicle for business activities. The cost of insurance varies, but there are affordable options available, and it's worth comparing quotes to find the best coverage for your needs.
| Characteristics | Values |
|---|---|
| Need for insurance | It is not mandatory but is recommended to protect oneself from claims, damages, and legal fees. |
| Types of insurance | General liability insurance, business interruption insurance, commercial auto insurance, workers' compensation insurance, product liability insurance, public liability insurance, business equipment insurance, and stock cover. |
| Cost of insurance | The cost of event insurance for 1-3 days starts at $49, 7 days at $99, and 90 days at $149. |
| Factors to consider | The number of employees, revenue, and business risks. |
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What You'll Learn
Homeowners insurance
If you are selling candles from home, it is important to know that your homeowner's insurance policy may not cover your business. Standard homeowner's insurance is not designed to cover home-based businesses. Therefore, if something unexpected happens related to your candle-making business, such as a fire that damages your home and inventory, your homeowner's insurance policy may not pay for the damages. Additionally, if your homeowner's insurance provider is unaware of your home-based business, they could cancel your policy, making it more difficult and expensive to obtain a new homeowner's policy.
Even if your homeowner's policy offers some coverage, the limit may be insufficient to cover expensive damages. In such cases, you may have the option to add a rider to your homeowner's policy. However, it is recommended to consult with your insurance provider to understand the extent of your coverage and determine if additional business insurance is necessary.
If you decide to obtain separate business insurance for your candle-making venture, there are several options to consider. Firstly, general liability insurance covers your daily operations against third-party bodily injury or property damage claims. For example, if a customer falls and injures themselves in your store, general liability insurance will cover their medical expenses. Product liability insurance is another crucial aspect, as it covers third-party property damages or bodily injuries caused by your products.
If your business owns a vehicle, commercial auto insurance is essential to cover potential product and equipment losses resulting from vehicle incidents. Additionally, if your business has a website, email system, point-of-sale (POS) mechanism, or sells products online, cyber liability insurance is critical to protect against cyber-attacks and data breaches. Business interruption insurance is also worth considering, as it can compensate for lost income during unexpected closures and cover business expenses like rent and utilities.
Ultimately, the decision to obtain insurance for selling candles from home depends on your risk tolerance and the extent of your homeowner's insurance coverage. Consult with your insurance provider to understand your options and make an informed decision.
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Business interruption insurance
If you are selling candles, you may want to consider getting business insurance to protect your investments, business, and peace of mind. Business insurance can cover costs arising from accidents, theft, damage, and lawsuits, which might be unaffordable to pay out of pocket.
Additionally, if you plan on selling your candles at events, festivals, or markets, you will likely need candle insurance or event insurance. Organizers of such events often require vendors to carry insurance, and this type of insurance can provide general liability protection to safeguard your business from potential claims and damages.
When considering business interruption insurance, it is important to assess your business's unique risks and determine the level of coverage you need. Speaking with a licensed insurance broker or agent can help you understand the different insurance options available and choose the best coverage for your candle business.
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Event insurance
If you are planning to sell candles, you will likely need some form of insurance. This is especially true if you plan to sell at events, as most organisers of farmers' markets, craft shows, and pop-ups require vendors to carry insurance.
The cost of event insurance for candle makers with ACT Insurance starts at $49 for 1-3 days of consecutive coverage. The seven-day policy is $99, and the 90-day policy is $149, with the option to renew. All plans include free unlimited additional insureds.
In addition to event insurance, there are several other types of insurance to consider when selling candles:
- Product liability insurance: This type of insurance provides protection in the event that a customer or their property is harmed by one of your products. It covers the cost of legal fees, medical expenses, and damages related to product-related injuries or illnesses.
- Commercial property coverage: This type of insurance provides coverage for your business property, including your candle-making equipment, supplies, and inventory. It can also cover the costs of repairs or replacement if your property is damaged or destroyed by fire, theft, or other covered events.
- Business income coverage: This insurance can help protect your income if your business is forced to close temporarily.
- Workers' compensation insurance: If your candle-making business has any employees, you are legally required to carry workers' compensation insurance. This will help compensate your employees' medical bills and lost wages if they get injured on the job.
- Commercial auto insurance: If you use your vehicle for commercial purposes, you may need commercial auto insurance to cover potential product and equipment losses associated with a vehicle incident.
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Product liability insurance
If you have an at-home candle-making business, your homeowners' insurance policy may not cover it. You may have the option to add a rider to your homeowners' policy, or you may need separate candle business insurance.
If you plan to sell your candles at events, shows, festivals, farmers' markets, craft shows, or pop-ups, you will likely need candle insurance. Organizers of such events commonly require vendors to carry insurance, and general liability insurance often extends coverage for events. If you don't have general liability coverage, companies like ACT Insurance and Thimble offer candle makers' insurance designed for events.
When deciding whether to carry insurance, you should consider your tolerance for risk and your budget. If you make candles as a hobby or only sell a limited number each year, the cost of insurance may outweigh the benefits. However, if you have a low-risk tolerance and are nervous about selling candles without insurance, then purchasing insurance may be a good idea.
There are several options for insurance providers, with some specializing in candle makers and handmade businesses. You can get a free quote from providers like Thimble and Progressive Commercial and compare the coverage limits, inclusions, and exclusions, as well as the overall cost.
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Public liability insurance
If you are selling your candles at events, shows, festivals, or pop-ups, you will likely be required to have public liability insurance. Organizers of such events often require vendors to carry insurance, and you may be asked to provide a certificate of insurance before you are allowed to trade. This type of insurance will cover you if a member of the public is injured at your booth or as a result of using your product. It will also cover any damage to property caused by your business activities, for example, if a candle causes a fire.
The cost of public liability insurance for candle-makers varies depending on the size of your business and the level of coverage you require. If you are a small business owner with no employees, you can expect to pay a lower premium than a larger business with multiple staff members. You may also be able to find insurance companies that specialize in event coverage, offering short-term policies for vendors who only need a few days of coverage. These policies can start from as little as \$49 for 1-3 days of coverage.
It is important to note that public liability insurance is not a legal requirement for all businesses. However, it is a prudent step to protect your business from potential financial losses. Without insurance, you may be personally liable for any damages or injuries caused by your business, which could result in significant costs.
Finally, when considering public liability insurance, it is advisable to speak to an insurance provider or broker to understand the specific coverage you need. They can guide you through the process and ensure you have the appropriate level of protection for your candle-making business.
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Frequently asked questions
If you have an at-home business, your homeowners insurance policy may not cover it. Check with your insurance provider to understand the extent of your coverage. You may be able to add a rider to your homeowners policy, or you may need separate candle business insurance.
You can get specialised candle-maker insurance, which covers claims, damages, and more. You can also get business equipment insurance and stock cover to protect your equipment and stock in case of an insurable incident. If you sell your candles online, you may need a different type of cover.
The cost of event insurance for candle makers with ACT Go starts at $49 for 1-3 days of consecutive coverage. A seven-day policy is $99, and a 90-day policy is $149.
You can get a quote and buy a policy online from companies like Insureon, Superscript, and ACT Insurance.
It's very common for organisers of events like farmers markets, craft shows, and pop-ups to require vendors to carry insurance. If you plan on selling candles at an event, you will most likely need candle insurance.
