Candle Making Insurance

Getting candle business insurance is essential.

In order to ensure seamless and uninterrupted operations, candle-making businesses require protection against product liability, especially, and will also benefit from other types of policies.

We’ll help you find the most personalized and affordable coverage for your unique business.

Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for Candle Makers

General liability insurance is — generally speaking — one of the most important insurance policies for candle-making businesses.

Some of the risks general liability insurance covers are:

Bodily injury
Property damage
Medical payments
Legal defense and judgment
Personal and advertising injury

While general liability insurance can cover a broad range of risks, it may not provide coverage for all the potential risks faced by your candle-making business. In such cases, you may need to consider obtaining specialized policies that offer coverage for specific types of risks, such as:

Product liability insurance: This type of insurance provides protection in the event that a customer or their property is harmed by one of your products. It covers the cost of legal fees, medical expenses, and damages related to product-related injuries or illnesses.
Commercial property coverage: This type of insurance provides coverage for your business property, including your candle-making equipment, supplies, and inventory. It can also cover the costs of repairs or replacement if your property is damaged or destroyed by fire, theft, or other covered events.
Business income coverage: This is insurance that can help protect your income if your candle-making business is forced to close temporarily due to a covered event such as a fire or some natural disaster. It can cover lost profits, fixed expenses, and other costs associated with the interruption of your business.

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Cost of General Liability Insurance

On average candle makers in America spend between $450-$1,500 per year for $1 million in general liability coverage.

Check out the chart below for a snapshot of average general liability insurance expenditure across a variety of industries.

Several factors will determine the price of your policy. These include your:

Location
Deductible
Number of employees
Per-occurrence limit
General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.

A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

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Discover the best coverage at the lowest rate in our cheapest business insurance review.

Common Situations That General Liability Insurance May Cover for a Candle-Making Business

Example 1: When hosting a candle party in a customer’s home, you forget about a candle that was lit. The candle burns down and eventually causes a fire that burns the customer’s kitchen. General liability insurance would likely cover the damage to the kitchen and its contents.

Example 2: When selling candles in person at a craft show, a glass candle holder is dropped by a customer. The glass shatters and severely cuts the customer. Should they sue, general liability insurance would likely cover the customer’s injury.

Example 3: You accidentally post inaccurate information about a competitor in comments on social media, and the competitor seeks compensation for the damage you’ve caused to their reputation. General liability insurance would probably cover any legal fees or settlements associated with the incident.

Other Types of Coverage Candle Makers Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:

Product Liability Insurance

Selling candles exposes your business to potential risk long after transactions are completed, and product liability insurance helps protect against some of those risks. For example, a child might become sick after eating a candle, or a candle’s flame might cause a house fire. Even if your product isn’t at fault, affected customers might still file expensive lawsuits against the business. Product liability insurance often covers such risks and resulting lawsuits.

Product liability insurance may be purchased as a standalone insurance policy or through a package policy.

Commercial Property Insurance

Any workspace or storefront that your business has should probably be protected by commercial property insurance. Property insurance normally covers commercial facilities as well as the equipment kept in them.

If you run a home-based candle-making business, there’s a good chance that you still need commercial property insurance for the workspace in your house. Most homeowner’s insurance policies won’t cover commercial workspaces, leaving a coverage gap if you don’t get commercial property insurance.

Commercial property insurance is frequently available as part of a business owner’s policy (BOP).

Workers' Compensation

If your candle-making company has any employees (full-time or part-time), you are legally required to carry workers’ compensation insurance. This type of coverage will help compensate your employee's medical bills and lost wages in the event that they get injured on the job.

Commercial Auto Insurance

Vehicles that are used for commercial purposes often have to be insured with commercial auto insurance. Business-owned vehicles always need their own commercial auto policies. Personal vehicles that are used for both private and commercial driving might need commercial auto coverage depending on the particular situation.

If you use a personal vehicle to deliver candles, make sure it’s properly insured both when it’s driven for private use and when you’re driving for business reasons.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your candle-making business:

Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
Stay up to date with business licensing.
Maintain your corporate veil.

Candle-Making Insurance FAQ

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.

"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

Generally speaking, yes. Right from the start, a candle-making business would probably need business insurance coverage. Insurance can provide a safeguard for the business against a range of potential risks, such as financial loss, personal injury, and property damage. Furthermore, specific types of insurance may be compelled by state regulations.

Not necessarily. Certain exceptions may be written directly into your candle-making business insurance policy, and some perils may be entirely uninsurable.

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.