Do I Need Insurance To Sell Wax Melts & Candles?
Jun 18, 2024
One of the most commonly asked questions is “Do I need insurance to sell my wax melts?” While the answer is that it’s not a legal requirement it’d be a bad idea not to get insurance.
It might sound harsh, but it’s true. If you are serious about your business and want to make a real go of it and expand your operation, then debating over whether to get insurance is a waste of your time. You SHOULD get it!
If the worst happens and someone puts in a claim against you and the business you have no support in the form of insurance to pay out and cover legal costs.
There are many types of insurance, and it’s important to understand the different types available to protect your business, your products, and yourself from various risks.
Whilst getting general business insurance is not a legal requirement, it IS a legal requirement to get Employers' liability when you start to hire people.
What types of insurance are there?
Product Liability Insurance
Purpose: Protects your business from claims related to injuries or damages caused by your products.
Coverage: Covers legal costs and compensation claims if someone is injured or their property is damaged due to your wax melts.
Example: If a customer suffers a burn from using your wax melt or if your product causes damage to their property, this insurance would cover the legal fees and any compensation awarded.
Public Liability Insurance
Purpose: Protects your business from claims made by members of the public for incidents that occur in connection with your business activities.
Coverage: Covers legal costs and compensation claims if a member of the public is injured or their property is damaged because of your business activities.
Example: If a customer visits your workshop and trips over a piece of equipment, resulting in injury, this insurance would cover the associated costs.
Employer’s Liability Insurance
Purpose: Required by law if you have employees; protects your business against claims from employees who are injured or become ill as a result of their work.
Coverage: Covers legal costs and compensation claims from employees.
Example: If an employee develops respiratory issues from exposure to fragrance oils used in your wax melts, this insurance would cover the costs of their claim.
Business Contents Insurance
Purpose: Protects your business premises’ equipment, stock, and contents.
Coverage: Covers the cost of replacing or repairing business contents if they are damaged, stolen, or destroyed.
Example: If your stock of wax melts or production equipment is stolen or damaged by a fire, this insurance would cover the cost of replacement or repair.
Professional Indemnity Insurance
Purpose: Protects your business against claims of professional negligence or mistakes made while providing advice or services.
Coverage: Covers legal costs and compensation claims arising from professional errors or omissions.
Example: If you provide a consultation on starting a wax melt business and the client suffers a financial loss due to your advice, this insurance would cover the claim.
Property Insurance
Purpose: Protects your business premises from damage.
Coverage: Covers the building itself against risks like fire, flood, and vandalism.
Example: If a flood damages your workshop or office, this insurance would cover the repair costs.
Business Interruption Insurance
Purpose: Compensates for lost income if your business operations are disrupted due to an insured event.
Coverage: Covers loss of income and operating expenses while your business is unable to operate.
Example: If a fire damages your workshop and you cannot produce wax melts, this insurance would cover the lost income and ongoing expenses during the downtime.
When selecting insurance for your wax melt business, consider the specific risks associated with your operations. Put together one of the earlier mentioned risk assessments.
It’s often beneficial to work with an insurance broker who can help tailor a policy package that meets your needs. Combining several types of insurance into a single business insurance package can provide comprehensive coverage and often save money.
