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.
About the Insurance Coverage
- $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
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 $75; up to $20,000 is $125; and up to $30,000 is $175. 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.
Pet products are covered if they are handcrafted by you. If they are made elsewhere and repackaged by you, or you buy them in bulk and repackage them, they are not covered by this program.
Coffee, tea and other consumables are covered only if they are prepackaged and sold in a set (such as a gift basket) in conjunction with handcrafted items that are covered as above. If they are sold separately, they are not covered.
- Acetone based products
- Aerosol products
- Any product requiring a prescription
- Digestible food/Drink Products of any kind
- Drugs or medicines
- Formaldehyde or products containing formaldehyde
- Invasive body inks
- Invasive products - intended to remain within the body
- Permanent cosmetics
- Plug-in electrical products
- Tanning beds or equipment
- Toys (except when sold in conjunction with an eligible beauty product)
- Vitamins or Supplements
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.
However, if a customer is harmed by your soap because it's incorrectly made and lye heavy you would be covered for any potential liability exposure. Or if you were doing a demonstration and a public viewer was splashed by lye or unsaponified soap and they sued you over it, you would be covered.
Please note that we do not cover damages to your home that occur out of your business operations, and this insurance does not replace your homeowner’s coverage.
HOWEVER, you do have the option to pay through PayPal and take advantage of PayPal's Bill Me Later® program (provided you qualify).
General Insurance Information
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.
Products that are made for you by an outside company that you purchase packaged and ready to sell do not qualify as handcrafted.
Outside the US: If your business is located outside the US and you don't have a physical address within the US where you perform work related to your business. Canadian members have the option of participating in the Canadian Insurance program (see the Canadian Insurance FAQ for details).
Not handcrafted: If more than 20% of your annual revenue comes from the sale of ingredients, supplies, or products that are produced for you complete and ready to sell, and/or non-consumer products such as consulting or other services.
Already Insured: If you already have product liability insurance, you can request that the member benefit insurance portion of your Handcrafter Membership be waived.
Furthermore, many homeowner insurance carriers will drop your coverage completely if they find out you are operating a business out of your home.
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 Insurance Program
The sign-up process for Canadian Handcrafters is slightly different; see the Canadian Insurance FAQ for details.
When you add someone to your policy as an Additional Insured, you are extending your policy coverages to protect the additional insured from a lawsuit that was caused by your negligence.
In other words, if someone slipped in your booth and broke their arm, the injured person would sue you and the venue. Since the venue is added as an Additional Insured your insurance policy would protect both you and the venue in the lawsuit.
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.
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 firstname.lastname@example.org or (toll free) 888-568-0548.