Candle Business Insurance For Makers And Sellers Of Candles

Candle business insurance is intended to safeguard a company owner’s financial assets and is a necessary investment in the case of a lawsuit or accidental losses.

This post will go through the primary insurance coverage for candle producers, as well as general liability insurance and additional policies that are appropriate for this industry.

Candle Makers’ General Liability Insurance

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

General liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.

Common Situations That A Candle Maker’s General Liability Insurance May Cover

Example 1: You forget about a lighted candle while having a candle party at a customer’s house. The candle goes out, resulting in a fire that destroys the customer’s kitchen. The damage to the kitchen and its contents would most likely be covered by general liability insurance.

Example 2: A client drops a glass candle holder while selling candles in person at a craft exhibition. The glass shatters, badly injuring the consumer. If they sue, the customer’s injuries would most likely be covered by general liability insurance.

Example 3: You inadvertently publish erroneous information about a rival in social media comments, and the competition wants restitution for the harm you’ve done to their reputation. Any legal bills or settlements linked with the occurrence would most likely be covered by general liability insurance.

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

The typical American candle producer pays between $450 and $1,500 per year for $1 million in general liability insurance.

The cost of your coverage will be determined by a number of variables. Among them are your:

Location

Deductible

Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.

Other Types of Coverage Required by Candle Makers

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all candle producers should have are as follows:

Insurance for Product Liability

Selling candles exposes your company to possible danger even after the transaction has been completed, and product liability insurance may assist protect against some of those risks. For example, a youngster may feel ill after eating a candle, or the flame of a candle may start a house fire. Even if your product is not at fault, aggrieved consumers may pursue costly lawsuits against the company. Such risks and related litigation are often covered by product liability insurance.

Product liability insurance may be acquired alone or as part of a package policy.

Coverage Options for Some Candle Makers

In addition to the insurance listed above, your candle manufacturers may want other forms of coverage based on particular features of your business. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Insurance for Commercial Property

Commercial property insurance should cover any office or storefront that your company has. Property insurance often covers business buildings as well as the equipment stored inside them.

If you operate a home-based candle manufacturing company, you may still want commercial property insurance for the workplace in your home. Most homeowner’s insurance plans do not cover business workplaces, creating a coverage gap if commercial property insurance is not obtained.

Commercial property insurance is commonly included in a company owner’s policy (BOP).

Insurance for Commercial Vehicles

Commercial car insurance is often required for vehicles utilised for business reasons. Commercial car plans are always required for company-owned automobiles. Personal automobiles that are used for both private and business purposes may need commercial auto coverage depending on the circumstances.

If you use a personal car to distribute candles, ensure sure it’s fully insured both for personal and professional usage.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.

If your company is an LLC, you should check into LLC insurance.