Your Guide to Understanding Insurance

Insurance is one of the most important investments you can make in your business. If you are making or selling a product and something goes wrong, your assets could be in jeopardy. From a claim your soap caused an allergic reaction to an injury at a craft show – insurance protects you and your business.

That is why the HSCG is committed to providing our members with flexible, affordable plans. Our partnership with Veracity Insurance Solutions ensures you’re getting outstanding customer service – so you can focus on making your product!

Figuring out what insurance you need may feel overwhelming. We can help. Our guide walks you through the information you need to make smart decisions – including common mistakes to avoid.

Below are some basics to get you started:

Step 1: Types of Insurance

There are many different types of insurance for you and your business. Knowing what they cover can help decide what you need. Because the HSCG focuses solely on soap, cosmetic and candle makers, our policies provide a combination of coverages designed specifically for that type of business.

General liability insurance:

Covers costs and liability should someone get hurt on your property (or in your craft booth). Or, if there are property damages or injuries caused by you or your employees.

Ex: Your craft tent blows over and damages expensive pottery in the booth next door. Someone gets splashed by wet soap during your demonstration. A customer trips on an electrical cord.

Product liability insurance:

The only type of insurance that covers you if someone gets injured while using your products -- even if it is your fault. Any claim that your product caused loss to personal or business property, injury or even death is covered.

Ex: Example: A house fire is blamed on your candle. Someone sues for medical costs, saying your soap lotion caused a severe allergic reaction.

Property insurance:

Also referred to as "inland marine,” it covers loss or damage to your insured business property (subject to limits and exclusions of your policy). While it doesn't cover buildings or structures, it includes computers, tools, equipment, inventory, and supplies.

IMPORTANT: The HSCG General & Product Liability Policy includes Property Coverage, up to $5,000.

Ex: A freak storm destroys your booth, display and products at a show. Your laptop gets stolen. Your equipment is damaged when a pipe bursts.

Professional insurance:

If your business includes teaching or providing information to others, this covers a claim that what you said caused harm or damage. All HSCG teachers carry Professional Insurance.

Ex: A student claims your technique damaged equipment. Your social media strategies caused someone to lose customers. A student claims your lesson led to severe burns and medical expenses.

Personal Insurance:

This includes a variety of policies that cover circumstances when your regular medical coverage falls short. These include life, disability, accident, cancer, vision and dental insurance.

IMPORTANT: HSCG members can add many personal insurance options through our partnership with Veracity Insurance.

Ex: You lost dental coverage when you left your job to start your business. As a new parent, you want life insurance. As a single parent, you need disability coverage in case you can’t work.

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