Hey all! I just found out about your wonderful small business community and was hoping I could pick your collective brains. I need some advice.
I am a creative-type 27yoF and I launched a 'small business' just under a year ago. I make handmade soap. It's actually more of a hobby than a business as I have a very stressful day job and I make soap to unwind. Because I ran out of friends/family to pawn my soap off to, I started selling my bars so I could make soap more often and try new techniques. My business doesn't really make much profit and I basically use the funds to fund my hobby.
My soaps have received good reception so far. I made sure I follow all the labeling laws and put detailed warnings on all my products about allergies. I bold the possible allergens, I advise people not to use on children (as they have not been tested on children), and advise them to spot test before using on their body. I also advise people that the product may have come in contact with known allergens.
Some people in the soapmaking community get liability insurance when they start to sell. My question is, at the level I'm selling, I wonder if insurance is worth the expense at this point? It would be a big out of pocket cost for me. Should anything happen with a product and someone potentially identify my soap as the culprit and try to sue me, could I not just refer them back to my labels?
I hope my question makes sense!