Do You Need Insurance When Selling Candles?
Navigating insurance and insurance policies is never the easiest of tasks however, it is something one should absolutely consider when selling candles in Australia.
Whether you’re selling your hand made and poured candles online on marketplace and social media sites such as Amazon, Ebay, Facebook, Instagram or Etsy or at a local craft market or via your own website, it’s essential that you have the adequate insurance cover for your candle business.
What kind of Insurance do I need for my Candle Business?
Insurance for your candle making business in Australia is not compulsory however, you will find a great number of industry professionals would highly recommend it.
Insurance is designed to protect you in the event of a claim being brought against you and your candle making business. Worst case scenario, if you are sued by a customer, the insurance claim can be extremely costly (and, not to mention emotionally taxing for you and your family) and may even unfortunately force you to close your candle making business altogether but, also impact your future livelihood and emotional well-being. The most common insurance types available for candle making businesses in Australia are;
Public liability - this covers property damage and bodily injury caused by your candle business.
Product Liability - for property damage and bodily injury caused by products you’ve supplied.
It can be difficult when you’re starting out as a small business to budget for all the overheads involved. It can be a struggle at times to make money in the first instance and, to be able to justify paying for something you can’t really see the value in short term. It can be overwhelming to be investing money and not getting a return straight away. However, think of the alternatives. By investing in insurance to begin with, this may save a large legal costs in the future. Can you really afford that?
At the end of the day, it is your own decision as to whether or not you outlay the annual costs to insure your candle making business.
How much is Public and Product Liability Insurance Australia?
The price you can expect to pay for public and product liability insurance for your candle making business in Australia can be as wide and varied. What is most important is to do your research and be sure to seek professional advice. The saying ‘you get what you pay for’ can really come into its own when it comes to various insurance policies. Be sure to shop around, seek second opinions and most importantly - read the fine print.
What do I need to be aware of when buying insurance for my candle business?
If selling online, this potentially opens you up to a worldwide online market of potential customers to buy your candles. This is a wonderful opportunity for your business however, there are some points you need to be aware of. When you’re reading your insurance policy, be sure to note if it will provide cover outside of Australia. In many cases, the insurance will actually only cover you and your business in Australia so, be sure to source further coverage if in fact you are selling outside of our Australian jurisdiction.
Most small candle making business in Australia will start from home. As such, your current home and contents insurer or, in the case that you are renting your landlord, may need to be aware of you making candles on the premises.
Certain councils in Australia may require specific permits to operate your candle business from home so, be sure to research this and put in place any necessary steps.
Most importantly, when you are researching and sourcing insurance policies for your candle making business, be sure to provide as much details about the business as possible when applying for quotes. Points such as if third parties are involved in your business, how you manufacture, how you freight etc will all contribute to receiving a personalised insurance policy that is right for your needs and, provides adequate coverage.
Starting your own candle making business in Australia, regardless of how little or big it may grow, will always come with risks. However, with sound professional advice and due-diligence you can mitigate these risks, like taking out adequate insurance policies, to help protect your future and your candle making business.