Insurance FAQ

The following are the most frequently asked questions about the member benefit insurance offered by the HSCG. Click any question to display the answer, or view all answers.

If you have a question that is not answered here, contact Veracity Insurance at or (toll free) (888)-568-0548.

About the Insurance Coverage

This is a Commercial General and Product Liability policy. The base limits are:

  • $1,000,000 General Aggregate Limit
  • $1,000,000 Products-Completed Operations Aggregate Limit
  • $1,000,000 Personal and Advertising Injury Limit
  • $1,000,000 Each Occurrence Limit
  • $300,000 Damage to Rented Premises Limit
  • $5,000 Medical Expense Limit

Business Personal Property coverage includes "miscellaneous property of a floating nature". It basically covers "tangible property you own or is in your care, custody or control", like when you go to a show or have items on consignment in a store. The limits are:

  • $1,000 Maximum payout per any one Item
  • $5,000 Total
  • $100 Deductible

Identity Theft coverage limits are:

  • $15,000 Aggregate Limit
  • $250 Deductible
Yes. Please see coverages and costs below:

Increased Liability - The insurance company offers an additional $1 million in coverage (making it $2 million total). The additional coverage is optional and is being offered because some fairs/shows and wholesale buyers require $2 million in liability coverage. When you sign up, you will be given an option to purchase the increased insurance. The cost is $55.00 per year.

Professional Liability - If you teach soapmaking in a professional capacity, you can get additional professional liability coverage that will cover you if a person claims that what you taught them caused damage or liability of some kind. The cost of the professional liability insurance endorsement is $135 per year.

Additional Business Personal Property Insurance - If you need additional property insurance (over the $5,000 already included) you can increase the limits. Up to $10,000 in coverage is an additional $16; up to $20,000 is $120; and up to $30,000 is $205. Higher amounts are also available, but that would require an application process. Contact Veracity Insurance if you want to increase your property insurance limits above $30,000.

The carrier is Great American Insurance Group.
The insurance broker is Veracity Insurance Solutions, LLC. They can be contacted at (888) 568-0548 or by email at hsmgins@veracityins.com.

Yes, you can. You will need to contact Veracity Insurance Solutions to get a copy of the most up-to-date policy.  They can be contacted at (888) 568-0548 or by email at info@soapguildinsurance.com.

For specific information about coverage including specific products, please contact Veracity Insurance Solutions directly at 888-568-0548 or by email at info@soapguildinsurance.com.

For more information about product coverage, including items that are not covered, please contact Veracity Insurance Solutions directly at 888-568-0548 or via email at info@soapguildinsurance.com.

To qualify for a Professional Membership (and thus the insurance) you must make handcrafted soap and/or cosmetics. It doesn't have to be any particular percentage of your total revenue, just so long as it is somewhere in your product line. Remember, however, that the other benefits of HSCG membership are geared towards soapmaking.

If you don't make soap or cosmetics and don't want to add it to your product line, then you don't qualify for membership in the HSCG and will need to look elsewhere for product liability insurance.

The policy excludes fungi and mold that affect a structure and which could be harmful. It doesn't exclude fungi or mold if it got into your product and caused you some liability exposure.

The policy excludes covering hazardous materials and any kind of cleanup of hazardous materials. If you or your employee were damaged by lye (or slipping and falling in the workplace) it wouldn't be covered under this policy anyway.

For more information about how coverage would work in the event of a customer being harmed by a lye heavy product, please contact Veracity Insurance Solutions directly at 888-568-0548 or via email at info@soapguildinsurance.com.

Yes, you are able to add as many additional insureds/certificate holders that you need throughout the year, at no additional cost. The following entities may request to be added as additional insureds: landlords, wholesalers, events, and shows.        

For specific coverage information, please reach out to Veracity Insurance Solutions directly at 888-568-0548 or info@soapguildinsurance.com.

No, there is no cap on gross revenue.

No. The membership dues and insurance premium must be paid in full before your membership and insurance become active.

 

 

HSCG Insurance Program

Join the HSCG as a Professional Handcrafter Member (and be located in the US or Puerto Rico). Your insurance will be effective as soon as your payment is processed and you will receive a link to your Certificate of Insurance by email shortly thereafter. You can download the insurance policy as a .pdf file at any time (you will not receive a copy of it by mail).

The sign-up process for Canadian Handcrafters is slightly different; see the Canadian Insurance FAQ for details.

There is an option to increase your liability coverage to $2M. If that still isn't enough, contact Contact Veracity Insurance Solutions at info@soapguildinsurance.com  or (toll free) (888)-568-0548 to see what can be done to fill your needs.

You can get a Professional Membership with the insurance waived so you aren't paying for double insurance just to be a member of the HSCG. You can sign up for a Professional Handcrafter Membership with insurance waived. 
You may sell your product in any way you want. As long as the law suit or claim is brought back to Canada or the US, the insurance policy will respond to your claim.
If you open your own store where you sell beauty products, there is no need to purchase separate liability insurance. However, your landlord by contract may require you to carry additional coverages. For example, higher liability limits, property coverage not only for your property but also for flooring, glass windows and doors and other permanently fixed items in the rented space.
No. The new owner would have to procure their own coverage.
An additional insured is a person or organization that is added to your insurance policy by endorsement
The majority of venues, promoters, vendors, or stores will require you to add them as an Additional Insured before they will allow you to occupy their premises and/or sell your product.

Those that will require an Additional Insured status on your policy, will usually have it written into a contract or agreement. It is a simple procedure to add them onto your policy.

There is NO liability deductible. The only deductible you have is $100 per claim under Inland Marine Coverage (business personal property). And there is $250 deductible for Identity Recovery.

A deductible is the amount of the loss that is your responsibility. For example, if you have a theft claim of $500 dollars, you will be responsible for $100 dollars of that claim. The insurance company will pay you $400 dollars.

For coverage information, please contact Veracity Insurance Solutions directly at info@soapguildinsurance.com or 888-568-0548. If you have questions about membership, please call HSCG Headquarters at 866-900-7627 or email us at mbrservices@soapguild.org.

About the Insurance Coverage

No. The policy becomes effective as soon as payment is processed when you join HSCG. The policy will cover you for a year in exchange for payment in advance of the policy premium. You may choose to renew it or not when it expires, but it is in place for a year and the premium is not refundable.

General Insurance Info

The HSCG is unable to answer specific coverage questions. For any questions relating to insurance, please contact Veracity Insurance Solutions directly at 888-568-0548.

The HSCG implemented the member benefit insurance program in September 2006 as a way for handcrafters to have access to reasonably priced insurance. It was at a time when insurance options for small businesses were limited. The lack of affordable insurance was threatening many members' ability to stay in business and making it extremely difficult for new handcrafters to start businesses, and the industry had the potential to be crippled.

These rates are based on having a large group of participants. We have enough participating members to make it worthwhile for the insurance company. With many members it reduces what the insurance companies call "adverse selection". Adverse selection is the idea that the people who need insurance most will buy it (like a sick person wanting to get health insurance).

When everyone participates, the insurance company knows they aren't just getting the people who feel they are likely to have a claim; so their underwriters think there is less risk, and the price goes down. The whole idea may or may not be true, but that's one of the things they take into account when calculating the insurance premiums.

An HSCG Handcrafter Member who resides in the 50 US states, Washington, DC or Puerto Rico (other US territories are excluded). Also, in order to qualify more than 80% of your products must be handmade. Canadian members have the option of participating in the Canadian Insurance program (see the Canadian Insurance FAQ for details).

No. If you do not have a business, list your full legal name as a sole proprietorship including DBA (Doing Business As) under the business name. If you have a company name you will be listed as Suzie Smith DBA Suzie.

The majority of your products have to be made by hand with minimal use of mechanized equipment, and a large portion of the processes must be under your control. Products that are made from scratch by hand, or products you purchased in bulk that are unscented and/or uncolored in which you add your own scent and/or color qualify as handcrafted.

Products that are made for you by an outside company that you purchase packaged and ready to sell do not qualify as handcrafted.

Yes, you can join the HSCG as a Professional Handcrafter without purchasing insurance if you already have insurance or choose to decline coverage. 

The HSCG is not able to answer specific or hypthetical coverage questions. We encourage you to reach out to your homeowner's insurance provider to discuss your coverage with them directly as we are unable to speculate about coverage.

No; this policy has been tailored only to those who have a membership with the HSCG.

Yes. There is one other known carrier of General & Product Liability Insurance (in a competative or lower price range) and that is RLI. Their policy is excellent for businesses that are just starting out, policies run from about $200-$300 per year. RLI does, however, have a cap on annual gross sales of $5,000 in annual sales; once sales reach that level their coverage is dropped. In addition, their policy does not cover candles, nor does it include any business property insurance.

If you are small enough, don't make candles, and don't need any property insurance, this may be the best insurance choice for you and you can still be an HSCG Member with insurance waived. If you make more than $5,000 in annual gross sales, make candles or need property insurance, the HSCG Member Benefit Insurance is the best way to go.

The HSCG is unable to answer specific coverage questions. For any questions relating to insurance, please contact Veracity Insurance Solutions directly at 888-568-0548.

Yes-you would need to call Veracity Insurance Solutions directly to complete the transaction.

Insurance Notice: The Handcrafted Soap & Cosmetic Guild, Inc. is not authorized nor licensed in any state or country to provide any kind of insurance. The HSCG merely collects the premium for Veracity Insurance, in accordance with the requirements set forth by Veracity Insurance and Great American Insurance Group. A new HSCG member's product liability insurance becomes effective immediately upon processing of the membership application in the HSCG. The HSCG cannot and will not answer any questions about product liability insurance provided other than the questions contained in the posted "Frequently Asked Questions" (FAQ) (above). If you have questions about the insurance products offered to HSCG members, your existing policy and how it may or may not be impacted by joining the HSCG, or other insurance options available to you, contact Veracity Insurance at info@soapguildinsurance.com or (toll free) 888-568-0548.

As always, questions about the HSCG and our member benefits should be directed by email to or phone to (866) 900-7627.