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.
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.
Can I read the actual policy?
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 email@example.com.
What products are covered?
For specific information about coverage including specific products, please contact Veracity Insurance Solutions directly at 888-568-0548 or by email at firstname.lastname@example.org.
Are there products that are NOT covered?
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 email@example.com.
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 has a "hazardous materials exclusion". Does that include lye?
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 firstname.lastname@example.org.
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.
Does the insurance cover home based businesses?
For specific coverage information, please reach out to Veracity Insurance Solutions directly at 888-568-0548 or email@example.com.
Can I make installment payments?
No. The membership dues and insurance premium must be paid in full before your membership and insurance become active.
How do I sign up and get the insurance?
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.
What if I need MORE insurance than is provided with the HSCG member benefit insurance?
There is an option to increase your liability coverage to $2M. If that still isn't enough, contact Contact Veracity Insurance Solutions at firstname.lastname@example.org or (toll free) (888)-568-0548 to see what can be done to fill your needs.
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.
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.
What if I have a question that isn't answered here?
For coverage information, please contact Veracity Insurance Solutions directly at email@example.com or 888-568-0548. If you have questions about membership, please call HSCG Headquarters at 866-900-7627 or email us at firstname.lastname@example.org.
What is the coverage?
This is a Commercial General and Product Liability policy. The base limits are:
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:
Identity Theft coverage limits are:
Is the premium refundable?
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.
If I have more than one business, are they both covered under the same policy?
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.
Why did the HSCG decide to include insurance as a member benefit?
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.
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.
Do I have to have a business in order to qualify for the insurance?
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.
How does the HSCG define "handcrafted"?
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.
Can I join the HSCG as a Professional Handcrafter and not get the member benefit insurance?
Yes, you can join the HSCG as a Professional Handcrafter without purchasing insurance if you already have insurance or choose to decline coverage.
I have liability insurance through my homeowner's insurance policy, does this cover me for my handcrafted soap and cosmetic business?
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.
Is there a lower cost General & Product Liability Policy out there, other than the HSCG's Member Benefit Insurance?
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.
Am I covered if I sell wholesale?
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 email@example.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.
Visit Our Sponsors: