While candles have seen an uptick in popularity in recent years as items of decoration, they are not a risk free product. The US Consumer Product Safety Commission claims that between the years of 1999 and 2002 there was an annual amount of 12 500 candle fires. These fires resulted in 110 deaths, 1 100 injuries, and almost $250 million in property loss annually during this four year period. The Commission also states that while domestic fires were decreasing on an annual basis, candle fires were increasing. This is due to the aforementioned increase in consumption of candles for aesthetic and other non-lighting purposes. These fires create risk for candle making businesses as the US is a very litigious society. Candle making businesses can potentially be held liable in a civil claim for the losses incurred due to candle usage and misuage. This is why candle businesses should seriously consider obtaining comprehensive business insurance policies.
General Liability Insurance
Civil liability is not the only cause for concern for candle making businesses. There are many risks involved with candle production and accidental fires are a constant concern. This is in addition to the risks of production associated with any manufacturing business. These include: bodily harm, medical payments, property damage and personal and advertising injury. These risks can be covered, in most cases, by general liability insurance. This is a form of insurance which covers your business from the forms of liability mentioned in this article. While this is not a requirement for establishing a business it is highly recommended as it can protect your business from potentially devastating losses.
There are certain specific examples in which general liability insurance will directly benefit a candle making business. For example, your candle making business is selling candles in person at a craft show. A demonstration candle is lit and it is accidentally knocked over and burns a potential customer. If this individual decides to sue your business for personal injury a general liability insurance policy will most likely cover the legal fees and potential damages associated with this claim. It is always best to discuss in depth with your insurance provider about the coverage that your business receives to ensure that there are no potential gaps in cover which could cost your business severely.
The average annual premium for $1 million worth of general liability insurance for a candle making business in the US is between $450 and $1500. This pricing structure is determined by a number of factors which include: location, number of employees and general aggregate limits. However, it is possible to purchase general liability insurance at a lower rate as part of a business owners policy (BOP). A BOP will include other forms of insurance cover such as property insurance and interruption cover. These additional benefits of a BOP make it a more comprehensive method of insuring your candle making business.
Other Forms of Insurance
The Really Useful Information Company (TRUiC) states that there are other types of candle business insurance which a candle business should consider. For example, product liability insurance, which protects against risks which occur after a sale is completed. If a candle of your business is the cause of a house fire the customer involved could potentially sue your business. It does not necessarily mean that your candle was at fault but the risk exists. Product liability insurance will often protect your candle making business from such risks and cover the high cost of the legal bills. Another example of extra insurance is commercial property insurance. This will protect not only the physical space in which your candles are manufactured but also the equipment used to do the manufacturing.
Candle making businesses are liable to a large amount of risk both during production and long after production has ended. It is therefore important to be comprehensively insured against all potential risk which comes with candle manufacturing. These risks can be mitigated substantially by the right insurance policies protecting your business from both legal liability and any accidental liability which may ensue. It is important that your candle making business is correctly and sufficiently insured to ensure that no accident will ever lead to your business having to let its fire go out.