Many soap makers found themselves without insurance alternatives when one of the common providers changed their coverage to exclude product liability for home-based businesses with over $5,000 annual revenue. The Handcrafted Soap Makers Guild along with the Handmade Beauty Network are excited to provide a workable affordable solution for their membership.
Birmingham, AL (PRWEB) October 4, 2006 -- The president of the Handcrafted Soap Makers Guild (HSMG) announced on September 8, 2006 the addition of product and general liability insurance as a membership benefit. "The lack of affordable insurance for handcrafted soap makers has been a difficult issue for the industry," says Marie Gale, President of the Handcrafted Soap Makers Guild. "We’re very excited to be able to provide a workable solution for our members."
Early in 2006 many soap makers found themselves without insurance alternatives when one of the common providers changed their coverage to exclude product liability for home-based businesses with over $5,000 annual revenue. When company executives refused to budge on the issue, despite the fact that there had been few (if any) claims, the hue and cry from within the industry was nearly deafening. Those reasonably successful small businesses grossing over $5K per year found quotes for suitable coverage generally ranged from $900 to $6,000 per year.
With many handcrafted soap makers seriously considering that they couldn’t stay in business with such high premiums, insurance coverage jumped to the forefront as the most important issue within the industry. It was an active topic on forums, yahoo lists and other chat groups for months. During that same time, the HSMG was following up leads and speaking with potential insurance providers.
Finally, in June 2006 there was a breakthrough. Shannan Johnson, a California soap maker found an insurance broker in California that had a line on a source for a group policy that would cover not only soaps, but also cosmetics and candles. After several months of negotiations and arrangements, an agreement was reached for suitable product and general liability insurance. By working together the Handcrafted Soap Makers Guild, Inc and the Handmade Beauty Network were able to reach sufficient projected numbers to offer the policy as a benefit to their respective members.
As of September 7, 2006, US-based soap makers who join the Handcrafted Soap Makers Guild receive $1 million in product and general liability coverage as part of their membership benefits. Total cost for membership is only $501.25, considerably less than most of the quotes for insurance alone. Members of the HSMG can now rest assures that they have adequate product and general liability insurance they can afford. For more information on the Soap Guild’s insurance coverage, see www.soapguild.org/insurance.php.
The Handcrafted Soap Makers Guild, Inc. is a non-profit trade organization established in 1998 to promote the handcrafted soap industry with over 600 members across the United States and 12 other countries around the world.
For more information, contact La Shonda Tyree at 1-866-900-SOAP or (205) 823-5517.
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