Custom Doll Business Insurance
Getting insurance for your custom doll business is essential.
Custom doll businesses need to be protected against claims of things like breaches of contract, product liability, and intellectual property infringement.
For example, a customer suffers an injury due to a defect on one of your dolls, or a customer claims that you didn’t provide their doll order by the date in their contract.
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 a Custom Doll Business
General liability insurance is — generally speaking — one of the most important insurance policies for customer doll businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
It’s very common for custom doll makers to carry a number of policies in addition to general liability, such as:
- Commercial property insurance
- Workers’ compensation insurance
- Product liability insurance
- Commercial umbrella insurance
- Home-based business insurance
It’s worth being aware of the fact that insurance providers tend to be grouped into two distinct categories when deciding where to buy coverage for your business from. These categories are:
- Traditional brick and mortar insurers — Describes companies like The Hartford and Nationwide.
- Online insurers — Describes companies like Next and Tivly.
We recommend that businesses look into online insurers, which offer a good blend of competitive prices with trustworthy and personalized quotes.
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Cost of General Liability Insurance
On average, custom doll businesses in America spend between $300 - $600 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a custom doll business to other professional industries using the graph below.
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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Common Situations That General Liability Insurance May Cover for a Custom Doll Business
Example 1: You ship a doll to a customer across state lines and the package arrives with a bed bug inside. The bed bug escapes and infests the customer’s house. General liability insurance would cover your legal costs if the customer decides to sue for damages.
Example 2: Your business logo is similar to another custom doll company’s logo. If the other doll company chooses to sue, general liability insurance would cover your legal costs and any resulting payout.
Example 3: While visiting your facility, a customer trips on a box left in the middle of a walkway. General liability insurance would cover the customer’s medical bills related to the accident.
Other Types of Coverage Custom Doll Businesses 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:
Commercial Property Insurance
If you own the building in which you operate, commercial property insurance helps protect your business-related property in the event of a fire, burglary, or natural disaster. It covers the cost of repairing any structural damage to your building or grounds as well as replacing any business materials lost in an accident.
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover, but also any disability or death benefits stemming from a work-related accident.
Product Liability Insurance
Product liability insurance covers any injuries or damages caused by defective or otherwise unsafe products. If a customer accuses you of using toxic paint on a doll’s face, for example, this insurance would help you cover the cost of fighting or settling a related lawsuit.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Home-Based Business Insurance
If you operate a workshop on your home property, you may need this insurance to safeguard your commercial equipment and space in your home devoted to your business. A typical homeowners insurance policy may only cover certain expenses if you don’t disclose you use your home for business purposes.
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 custom doll 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.
Custom Doll Business 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.
Yes. It is essential for the continued success of your custom doll business that it is adequately protected with business insurance before it launches.
Not only this, certain insurance policies in particular (such as workers’ compensation and commercial auto) may be essential for your business to operate legitimately.
Not necessarily. Certain exceptions may be written directly into your custom doll 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.