One of the biggest questions we are asked is if insurance is necessary as a Canadian cosmetics maker.
And really, the choice is up to you.
However, we do advocate towards looking at liability insurance once you are up and running. Liability insurance will protect you and your business in case someone ever has a reaction against one of your products.
Do you have the time and/or money to worry about legal proceedings? Didn't think so, so let's jump in!
Commercial General Liability
As per investopedia.com, Commercial general liability (CGL) is "a type of insurance policy that provides coverage to a business for bodily injury, personal injury and property damage caused by the business' operations, products, or injury that occurs on the business' premises."
Per the same investopedia.com, Liability insurance "provides the insured party with protection against claims resulting from injuries and damage to people and/or property. Liability insurance policies cover both legal costs and any payouts for which the insured party would be responsible if found legally liable."
So by now, you may be considering that liability insurance could be an important business expense for you. The Handmade Bath and Body Guild in Canada is our top pick for insurance.
They offer $2 million in coverage, portable coverage for markets or pop-ups, contents insurance to cover your equipment and supplies, and coverage for a limited amount of US sales (25%). You can read more about the policy here.
We like the amount of coverage, the various other add-ins mentioned above, and the price.
This policy will only cover products that have been submitted to Health Canada using their Cosmetic Notification Forms, so make sure you have those up to date before applying.
You can also reach out to your current insurance provider(s) to see if they offer business liability insurance.
The HSGC based in the US also offers handcrafters insurance.
So what do you think? Is liability insurance something you will look into?
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