Insurance FAQ's

General liability insurance can provide coverage for third-party bodily injury and property damage claims or suits that you become legally obligated to pay, arising from your business operations.

Example 1: You are attending a farmers market and someone trips and falls in your booth causing an ankle injury. This would be considered a bodily injury claim and the general liability insurance would respond.

Example 2: The wind blows your canopy and knocks over your neighbors display damaging multiple items. This would be considered a property damage claim that the general liability would respond to.

General liability Insurance typically includes coverage for:

1. Product Liability and Completed Operations Coverage
2. Personal and Advertising Injury
3. Damage to Premises Rented to You
4. Medical Expense Coverage

1. Product liability insurance can provide coverage for third-party bodily injury and property damage claims or suits that you become legally obligated to pay, arising from the products you manufacture, sell, import, distribute, or handle.
2. Product liability insurance is critical coverage for any business providing consumer goods to the public. Some examples of product liability claims are:
3. 1. Your soap caused a skin irritation to a customer that caused them to seek medical attention. Product liability would pay the legal and medical costs associated with the bodily injury caused by your soap product.

2. A candle catches some drapes on fire causing substantial fire and smoke damage. If you are found liable for the damages, the Product Liability Insurance may pay for the repairs on the home and any legal costs associated with a lawsuit if one was filed against you.

Although Product Liability Insurance is usually included in the General Liability Policy, it can also be purchased as a stand-alone policy.

Yes. Please see coverages and costs below:

Increased General & Product Liability - You can increase your General and Product Liability Aggregate Limit from $1 million to $2 million for only $55 per year. This increased coverage limit is optional and is being offered because some fairs, shows, and wholesale buyers require $2 million in liability coverage to meet their contractual insurance requirements. You can add this coverage during the application process or through your online portal after the policy has been purchased.

Excess Liability - There may be times when you will be required to provide higher liability limits than the $1,000,000 Occurrence and $2,000,000 Aggregate Limit that can be purchased through your online portal. We can provide up to $5 million in additional liability limits through Insurance Canopy. The HSCG member rate is $500 per million of additional limit. For example, if you need an additional $2 million in liability coverage, it will cost $1,000.

Professional Liability - If you teach, instruct, or facilitate classes or workshops as part of your business operations, you should consider adding professional liability coverage to your policy. This coverage protects you from bodily injury and property damage claims arising from, and in connection with you acting as a teacher, instructor, or facilitator. This coverage can be added during the application process or after the purchase of your policy through your dashboard for only $135 per year.

Tools, Supplies, & Inventory Insurance - Also known as Inland Marine Insurance, this coverage insures tools, supplies, and inventory used in your business, or property of others in your care, custody, or control, anywhere in the United States. The limits available through the HSCG program are:

Standard Policy Tools, Supplies, & Inventory Limit Options

(For companies with annual gross sales under $250,000)

**Aggregate Limit is the most the company will pay in the policy period. This coverage is not available on the Minimal coverage option.

Standard Policy Tools, Supplies, & Inventory Limit Options

(For companies with annual gross sales $250,000 and above)

**Aggregate Limit is the most the company will pay in the policy period. This coverage is not available on the Minimal coverage option.

If you purchased the Minimal coverage option, or If you need higher additional limits than what is available through the HSCG program, please contact Insurance Canopy to discuss your options.

The carrier is Great American Insurance Group. The insurance carrier is the backing behind the HSCG insurance program and is responsible for paying claims.

The program manager is Veracity Insurance Solutions, LLC. The program manager works with both the HSCG and insurance company to ensure coverages, pricing, and terms are in alignment with both parties.

The insurance broker is Insurance Canopy. The insurance broker is responsible for customer service questions and any policy services needed. Insurance Canopy is a national agency who specializes in Product liability Insurance as well as offers a wide variety of insurance products including commercial property, workers compensation, cyber coverage, excess liability, and much more. As your business grows, your insurance can grow with you. Insurance Canopy service representatives can be contacted at (844) 520-6989 or by email at info@soapguildinsurance.com.

Yes, you will need to contact Insurance Canopy to get a copy of the most up-to-date policy. They can be contacted toll free at (844) 520-6989 or by email at info@soapguildinsurance.com.

There are thousands of different products that can be covered by the HSCG Insurance Program or through other products offered by Insurance Canopy. The most popular types of products are listed below.

1.  Balms
2.  Bath bombs
3.  Bath products
4.  Beauty products
5.  Candles
6.  Cosmetics
7.  Creams
8.  Hair care & accessories
9.  Lotion
10.  Oils & ointments
11.  Perfume
12.  Salts & scrubs
13.  Soap
14.  Skincare products

There are products and ingredients that are not covered by the HSCG insurance program. If you make or produce any of the following excluded products or ingredients, this policy will not provide coverage for them:

1. Dietary supplements - meaning products taken by mouth that contain a “dietary ingredient” intended to supplement the diet. Including, but not limited to, vitamins, herbs, minerals, extracts, concentrates, botanicals, etc.
2. Edible or ingestible products
3. “Ethical pharmaceuticals”, meaning any drug, vaccine or medicine, which cannot be
4. distributed to the general public by any means other than through the prescription of or usage by a licensed physician or medical doctor duly accredited by a recognized medical professional association, such as the American Medical Association.
5. Formaldehyde, formaldehyde products, or formaldehyde‐containing materials or products
6. Furniture
7. Hand sanitizer not in compliance with the United States Food and Drug Administration requirements for over‐the‐counter topical antiseptic or antimicrobial products effective on or after the date of manufacture
8. Ingestible vitamins and minerals
9. Invasive body inks, dyes, or permanent cosmetics
10. Inversion tables
11. Liquid Fuel Gel Candles
12. Nail curing lights
13. Plug-in electrical products
14. Products containing alcohol, except for hand sanitizer described above
15. Products containing cannabidiol (CBD) or tetrahydrocannabinol (THC) — optional
16. coverage for Topical CBD products available, contact Insurance Canopy to learn more
17. Products developed with or containing human stem cells or human stem cell media
18. Products or equipment implanted on or within the human body
19. Products, supplements, or additives that, at any time, are recalled, including, but not
20. limited to a recall classified by the United States Food and Drug Administration to be a “Class I Health Hazard”, meaning a situation in which there is a reasonable probability that the use of, or exposure to, a violative product will cause serious adverse health consequences or death, as defined in the Code of Federal Regulations, Title 21, Chapter 1, as amended
21. Suppositories
22. Tanning beds & equipment
23. Toys (except when sold in conjunction with an eligible beauty product)
24. Note: This is not an all inclusive list of exclusions within the policy. Please refer to the policy documents for exact coverages offered.
25. If you need product liability insurance coverage for any of the excluded products listed above, please contact Insurance Canopy to discuss your policy and coverage options. If you have questions about the coverage for your product(s), please contact Insurance Canopy directly at (844) 520-6989 or info@soapguildinsurance.com for assistance.

CBD is not automatically covered under any HSCG product liability section of the policy.

However, the coverage for CBD can be added to the policy for an additional premium. The

additional premium to have CBD coverage included starts at $1,275.

Is CDB covered under the policy?

*CBD products must be compliant with the H.R.2- Agricultural Improvement Act of 2018

Yes. It is important to understand that any claim arising out of, or from, a product containing

CBD would be excluded regardless of how the claim occurred.

If you only make candles, you're welcome to join the HSCG! Many of our Vendor Members also sell candle-making supplies, and we have educational resources tailored specifically for candlemakers.

Additionally, insurance coverage is available for those who make candles and are current Members of the HSCG.

The policy excludes fungi or bacteria that is contained within a building or structure. This exclusion does not apply to “fungi” that is on, or contained in, a good or product intended for bodily consumption.

Fungi means any type of form or fungus, including mold, mildew, spores, scents, or byproducts produced or released by fungi.

The insurance company understands lye is one of the main chemicals used to make soap. Lye

is not excluded under the Products and Completed Operations of the HSCG policy. However,

please note the policy does not cover you or your employees for any bodily injury or property

damage caused by your product(s). For example, if you or one of your employees sustained

injuries during the making or testing of your products there would be no coverage under the

policy. This exclusion also applies to any cleanup of hazardous materials.

Please contact Insurance Canopy at (844) 520-6989 or info@soapguildinsurance.com for any insurance questions. Insurance Canopy has a licensed and dedicated support team available Monday through Friday from 8:00 am to 6:00 pm

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:

1. Associations
2. Businesses
3. Cities or councils
4. Events and shows
5. Event managers
6. Landlords
7. Retailers
8. Wholesalers
9. You cannot list friends, independent contractors, employees, family members, business associates, other vendors, or yourself as an additional insured.
10. You may add additional insureds by logging in to the insurance portal at www.soapguildinsurance.com, or you can call Insurance Canopy directly at (844) 520-6989 for assistance.

Yes - this policy can cover businesses that are based out of the home. The policy is not tied to any specific location and covers you anywhere within the United States.

No, there is no cap on gross revenue. However, it is important to note that 80% of your products must be handcrafted/handmade. If you have sales of non-handmade products exceeding 20% of your total gross please contact a service representative at Insurance Canopy. Members are eligible for preferred pricing under Insurance Canopy’s non-handmade insurance program. Make sure you inform Insurance Canopy that you are a member of the HSCG and provide them with your active member number.

For a product to be considered handmade, it must be produced in a small batch by you or altered by you to be a unique final product. If you outsource the production, white label another product, or resell a wholesale product without any material changes, it would not be considered handmade.

Membership dues and insurance premiums must be paid in full before your membership and insurance become active. There are installment payment options available through PayPal Credit (dependent upon credit approval). More information about PayPal Credit is available directly through PayPal.

The insurance program for the HSCG has two coverage options: Minimal and Standard Coverage. The “Minimal” option only offers Commercial General and Product Liability coverage. The “Standard” option includes the Commercial General and Products Liability along with Inland Marine coverage that will protect your tools, supplies, and inventory as outlined below. Policy limits for the HSCG Insurance Program are:

Commercial General and Product Liability Insurance

1. $1,000,000 General Aggregate Limit
2. $1,000,000 Products-Completed Operations Aggregate Limit
3. $1,000,000 Personal and Advertising Injury Limit
4. $1,000,000 Each Occurrence Limit
5. $300,000 Damage to Rented Premises Limit
6. $5,000 Medical Expense Limit
7. Tools, Supplies, and Inventory Coverage (included in the Standard option)
8. Also known as Inland Marine Coverage, this may cover your "miscellaneous property of a floating nature". Meaning it covers your equipment wherever you are within the United States; like tools you use to make our products, or items you have on consignment at a store. Inland Marine also extends coverage to "tangible property in your care, custody or control that is used in your business", like an item you may rent or borrow to use in your business. The limits are:
9. $1,000 Maximum payout per any one Item
10. $5,000 Total
11. $100 Deductible
12. *Please contact Insurance Canopy if you need additional limits or coverages.

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.

More than one entity can be covered under the policy as long as there is common ownership and both businesses would qualify. It is important to have both entities named on the policy.

If you’re curious about adding another business to your policy, please contact Insurance Canopy directly at (844) 520-6989 or info@soapguildinsurance.com first to see if it qualifies.

The base price for minimal coverage is $265.00 for annual gross sales under $250,000.

If your annual gross sales are $250,000 and above your premium will be determined based on a

rating formula designed exclusively for HSCG members. The HSCG rate is $1.50 per $1,000 of

gross sales. Included below are three examples on how to calculate your estimated premium.

Example 1 (Minimal Policy): Annual gross sales are $275,300. The formula would be $275,300

X $1.50 = $412.95

Example 2 (Minimal Policy): Annual gross sales are $342,125. The formula would be $342,125

X $1.50 = $513.19

Example 3: (Minimal Policy) Annual gross sales are $1,075,000. The formula would be

$1,075,000 X $1.50 = $1,612.50

Additional limits and coverage can be added to your policy during the checkout process.

Insurance Canopy support agents are available and eager to help with any questions you may

have.

The Program Manager (Veracity Insurance Solutions) utilizes a Risk Purchasing Group that allows them to provide affordable liability insurance to a homogenous group with similar, or related, liability risk — like the HSCG. This provides bargaining power for the group. Because of these tools, together we have been able to provide the HSCG membership with a competitive insurance product.

An HSCG Soapmaker Member who resides in the 50 US states or Washington DC (other US territories are excluded). Also, in order to qualify 80% or more of your products must be

handmade/handcrafted. Canadian members have the option of participating in the Canadian Insurance program.

No, you do not have to have a business in order to qualify for the insurance.

If you are operating as a Sole Proprietor, you will list your Legal Name as your own name, and under DBA, the name you are marketing your products under.

If you decide to register your business as a Corporation, LLC, LLP, etc. at any point during your policy, please contact Insurance Canopy directly at (844) 520-6989 or info@soapguildinsurance.com to update your information.

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.

To cover business operations or products that may not qualify for the HSCG Insurance Program, please contact Insurance Canopy directly at (844) 520-6989 or info@soapguildinsurance.com. They may be able to provide additional insurance options.

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

Typically, most homeowners or renters policies will not provide general or product liability coverage for your business. Because the HSCG cannot answer questions regarding your homeowners coverage, we strongly recommend reaching out to your homeowner's insurance company/agent and discuss exact coverages with them.

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 competitive 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 your coverage is dropped. In addition, their policy does not cover candles, nor does it include any coverage for tools, supplies, or inventory.

If you are small enough, don't make candles, and don't need to insure tools or supplies, 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.

Disclosed retail and wholesale operations are covered as long as the business activities are not ineligible or excluded under the policy.

Yes, you can add professional liability coverage at any time by logging into your HSCG portal. If you need any assistance please contact Insurance Canopy directly at (844) 520-6989 or info@soapguildinsurance.com

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.

Join the HSCG as a Professional Handcrafter Member and reside in the 50 US states or Washington DC (all US territories are excluded). 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 general and product liability insurance aggregate to $2,000,000. If you require higher limits than what can be purchased through your portal, please, contact Insurance Canopy directly at info@soapguildinsurance.com or (toll free) (844) 520-6989 to discuss your options.

No, 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 may sell your product in any way you want. As long as the lawsuit or claim is brought back to Canada or the US, the insurance policy may 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.

We recommend that you talk to Insurance Canopy about the specific coverages you might be looking for or required to have for your store and see what they can do for you. Some additional coverage may need to be added on separately through a custom policy. You can contact Insurance Canopy at info@soapguildinsurance.com or (toll free) (844) 520-6989.

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. This may be:

1. An event, city, or group hosting an event
2. A specific brand or store putting on a show
3. The owners of a building or business running an event
4. A business who you sell your products through
5. An online marketplace you sell with
6. Another business that is distributing your products
7. Usually an event promoter or a retail partner will tell you they need to be added on to your insurance policy as an additional insured. Providing additional insured status to a person or organization allows them to receive coverage, under your policy, if the additional insured is brought into a lawsuit due to a bodily injury or property damage claim you are responsible for.
8. It’s important to note an additional insured is not YOU! It also is not a business partner, your family members, friends, other vendors at the same event, employees, or colleagues. Listing someone as an Additional Insured only extends coverage to groups or individuals who could be accused of an accident that occurred because they work with your business, you occupy a space on their premises, or they sell your product.
9. For example, someone trips over your display in your booth at an event, and they try to sue you, the event manager, and the property manager. If the event manager and the property manager are additional insureds on your policy, they can be protected.

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 Tools, Supplies, & Inventory coverage (also known as Inland Marine or Business Personal Property).

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 Insurance Canopy directly at info@soapguildinsurance.com or toll free at (844) 520-6989. If you have questions about membership, please call HSCG Headquarters at 866-900-7627 or email us at mbrservices@soapguild.org.