Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a custom doll business.

Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a custom doll business.

This article will discuss the primary insurance coverage for custom doll enterprises, general liability insurance, as well as additional policies that are appropriate for this industry.

Custom Doll Companies Need 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.


Example 1: You transport a doll across state lines to a client, and the shipment comes with a bed bug inside. The bed bug manages to escape and infest the customer’s home. If the consumer chooses to sue for damages, general liability insurance will pay your legal fees.

Example 2: Your firm’s logo is similar to the logo of another custom doll manufacturer. If the other doll manufacturer decides to sue, your legal fees and any subsequent settlement would be covered by general liability insurance.

Example 3: A client stumbles on a box left in the middle of a path while visiting your business. The customer’s medical expenditures resulting from the accident would 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

Custom doll firms in America typically pay between $300 and $600 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:



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 Custom Doll Businesses

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 custom doll companies should have are listed below.

Insurance for Commercial Property

Commercial property insurance protects your business-related property in the case of a fire, burglary, or natural catastrophe if you own the building in which you operate. It will pay for the cost of restoring any structural damage to your building or grounds, as well as the replacement of any business items destroyed in an accident.

Insurance for Workers’ Compensation

Workers’ compensation insurance is required in most states for both part-time and full-time employees. This coverage covers your workers if they are hurt at work or get sick as a result of a workplace accident. It covers not just an employee’s medical expenditures and missed pay if they need time off to recuperate, but also any disability or death benefits resulting from a work-related accident.

Insurance for Product Liability

Product liability insurance protects you against any injuries or losses caused by faulty or otherwise harmful items. If a consumer accuses you of putting harmful paint on a doll’s face, for example, this insurance will assist you in covering the costs of opposing or resolving a related lawsuit.

Coverage Options for Some Custom Doll Businesses

In addition to the insurance listed above, your custom doll company may need other forms of coverage based on particular elements of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Umbrella Insurance for Businesses

While most claims are covered by your general liability insurance policy, certain incidents or lawsuits may be so severe that they threaten to deplete the limits of your main coverage. Commercial umbrella insurance protects you from having to pay for legal expenses and awarded damages that exceed the limits of your main policy out of pocket.

Insurance for Home-Based Businesses

If you run a workshop from your home, you may need this insurance to protect your commercial equipment and the area in your house dedicated to your company. If you do not declare that you use your house for commercial reasons, a normal homeowners insurance policy may only cover specific expenditures.

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.