You have home owners insurance. You have car insurance. Should you get business liability insurance? Having business liability insurance is not mandated by law. If you wish to run a craft business without insurance, there is no governing agency that will force you to buy insurance. Your bank, should you ever get a loan, will ask you for insurance (they’d like to ensure they get repaid on their loans no matter what happens with your business). Buying insurance is a prudent choice to protect your family’s assets should anything go wrong in your handcrafted soap and toiletry business.
We live in a litigious society. People can sue or claim damages for anything and everything. If someone slips in the shower using your salt scrub, they could claim it was the fault of your scrub. If someone uses your soap and decides that the rash they developed the next day was from your soap, they can claim damages. They might not win a possible lawsuit but dealing with the issue would take valuable time away from you and your business. Additionally, any legal fees could be costly and put you and your family assets at risk. Finally, if your house were to (knock on wood, throw salt over your shoulder, turn around 3 times) burn or have fire damage, your business property might not be covered under your home owners insurance. [Read more…]