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  • #1000424
    sueallen
    Member
    • Total posts: 1

    Hi I’m wanting to make bath bombs and sugar scrubs at home to sell on my facebook page to start up do I need any insurances to do this

    #1224278
    LucasArthur
    Participant
    • Total posts: 3,158
    sueallen, post: 271169, member: 119375 wrote:
    Hi I’m wanting to make bath bombs and sugar scrubs at home to sell on my facebook page to start up do I need any insurances to do this

    Do you need it? Not sure its ‘mandated’, although more importantly what would happen if you product caused injury – death – etc etc.. Would you be able to personally cover the risk/exposure of faulty products etc etc?

    Generally speaking, and IMO, its advisable to have product liability insurance and others to protect yourself – especially if you are operating it under a sole trader and your own personal name.

    This all being said, the reason i opened with ‘do you need it? Not sure its ‘mandated” is because there are many people doing ‘hobby sales’ from home with hand made items etc etc and never even consider insurances nor the ramifications of what may happen if things hit the fan.

    Speak to an insurance broker for some addition info and some quotes, so you know where you stand and what could happen if you DO NOT have insurance.

    Happy travelling..

    #1224279
    bb1
    Participant
    • Total posts: 4,472
    LucasArthur, post: 271170, member: 34537 wrote:
    Do you need it? Not sure its ‘mandated’, although more importantly what would happen if you product caused injury – death – etc etc.. Would you be able to personally cover the risk/exposure of faulty products etc etc?

    Generally speaking, and IMO, its advisable to have product liability insurance and others to protect yourself – especially if you are operating it under a sole trader and your own personal name.

    .

    And there in lays the problem with business today, its all about protect yourself.

    Start a company so your personal assets aren’t at risk is the first catch cry of accountants and Solicitors.

    Take out insurance to protect yourself is the catch cry of insurance brokers.

    You never hear anyone say, but what can I do to protect my client, my customer, that poor bunny that pays my income.

    The important thing should be how do I protect my client, if your bath bombs, cause your client injury in any way can you afford to compensate them, personally who cares about your protection, its more about the customer, hospital bills and ongoing compensation and costs can run into millions. Companies, sole traders, etc, should have sufficient resources to cover that, not run for the hills and declare it’s someone else problem because I don’t have enough coin.

    So to answer your question ”do I need insurance”, legally I have no idea, but I suspect not because Australian laws stink when it comes to protecting customers. But more importantly ethically should you have insurance. YES

    #1224280
    plgs
    Member
    • Total posts: 26

    Hi all, I won’t get involved in the ethics debate, other than to say protecting yourself by having insurance also protects others, by making sure there are resources to pay potential claims so claimants don’t lose out.

    For most businesses there are only two kinds of mandatory insurances: workers compensation (responding to workplace injuries if you have employees), and CTP (vehicle injuries to others, if you operate vehicles). Many businesses do also carry product liability insurance, which responds to claims for injury or damage due to faulty products. It’s not mandatory, but highly advisable for the reasons above. It’s worthwhile finding out about the cost, and considering it a basic cost of doing business.

    #1224281
    LucasArthur
    Participant
    • Total posts: 3,158
    bb1, post: 271171, member: 53375 wrote:
    And there in lays the problem with business today, its all about protect yourself.

    Start a company so your personal assets aren’t at risk is the first catch cry of accountants and Solicitors.

    Take out insurance to protect yourself is the catch cry of insurance brokers.

    You never hear anyone say, but what can I do to protect my client, my customer, that poor bunny that pays my income.

    The important thing should be how do I protect my client, if your bath bombs, cause your client injury in any way can you afford to compensate them, personally who cares about your protection, its more about the customer, hospital bills and ongoing compensation and costs can run into millions. Companies, sole traders, etc, should have sufficient resources to cover that, not run for the hills and declare it’s someone else problem because I don’t have enough coin.

    So to answer your question ”do I need insurance”, legally I have no idea, but I suspect not because Australian laws stink when it comes to protecting customers. But more importantly ethically should you have insurance. YES

    Bert

    Whilst i understand your opinion on this one, i feel you are missing the complete picture and only looking at it from a sceptics perspective.

    Although i have mentioned to protect yourself, insurance is and will always be about protecting yourself firstly and in the sense of the policy also protecting those covered.. In this case, yes i mentioned to protect yourself, although ultimately it is about ensuring that the claimant (or even person being injured) is covered should death or injury occur.. That is really just a given.. Taken from the OP’s post, the reply is just in light of them – its being written by them so the advice is for them…

    If the question was posed, do i need to have insurance to protect my customers.. The wording may have been very different…

    Again, understand your POV and its encouraging to read… Its also good to note that the advice given, automatically relays and covers the buyers :)

    My biggest assessment of your reply is that you are interpreting it from the perspective of someone looking at how someone can avoid something, but isnt getting the right insurance doing the right thing? Whats wrong with having insurance to protect your assets, and paying for that privilege? isnt that doing the right thing by your customers? Would it not be worse to have the business structured in such a way (and this advice was not given) to create a shell of a company so if we didnt take out insurance and merely have a company wound up and forgo its legal obligations if a customer is caused serious injury or death? IS someone better to have insurance to cover themselves and customers or to have none at all and avoid helping the clients/customers that had been effected by said product?

    Re your comment about ‘Companies, sole traders, etc, should have sufficient resources to cover that, not run for the hills and declare it’s someone else problem because I don’t have enough coin.’ concerns me to do degree.. If someone did not have insurance for their product or service and caused major injury or death, it is unlikely that most (not all) in the handy crafts business lines would have sufficient coin to cover legal costs, hospitalisation and even claims against death and so forth.. Not many would have assets or coin/cash in the bank to cover such an event – if they did, i want to change my business model and replicate… This self insurance belief, is ok in small instances although not realistic when dealing in the public arena… Pretty sure you must have some type of insurance in your business? be it business, be it car, be it goods covered?

    My opening comment is setting it up to be a personal decision, not a generalised one and went a little like this: “Do you need it? Not sure its ‘mandated’, although more importantly what would happen if you product caused injury – death – etc etc.. Would you be able to personally cover the risk/exposure of faulty products etc etc?”

    IMO, as the rest of the reply indicated, i would prefer to be covered and in turn have my customers covered with insurance as opposed to relying on my financial stability to cover said outcomes if something would go wrong.

    Re your initial comment.. arent we in business for ourselves, ultimately? Should we not be trying to get ahead and protect ourselves with the tools and services available to us? Would you not don safety glasses or gloves or other protective clothing whilst doing someones gardening or other? Its all about protecting yourself, whilst i understand this sounds selfish, its a very personal interpretation on the extent of how you see this and i feel you may see the bad (as do i) in the comment as opposed to the good – maybe i should have written, ‘its about protecting ALL INVOLVED’ even though protecting oneself in this instance is actually protecting all involved??

    Novel complete.. until your rebuttal :)

    #1224282
    bb1
    Participant
    • Total posts: 4,472
    LucasArthur, post: 271180, member: 34537 wrote:
    Re your comment about ‘Companies, sole traders, etc, should have sufficient resources to cover that, not run for the hills and declare it’s someone else problem because I don’t have enough coin.’ concerns me to do degree.. If someone did not have insurance for their product or service and caused major injury or death, it is unlikely that most (not all) in the handy crafts business lines would have sufficient coin to cover legal costs, hospitalisation and even claims against death and so forth.. Not many would have assets or coin/cash in the bank to cover such an event – if they did, i want to change my business model and replicate… This self insurance belief, is ok in small instances although not realistic when dealing in the public arena… Pretty sure you must have some type of insurance in your business? be it business, be it car, be it goods covered?

    Ah Jason, I have missed this place, my only rebuttal is to this section (I stand by the rest). I think you misinterpreted what I meant or more likely I didnt make it clear. When I said to make sure you have enough coin to cover clients issues, I wasnt thinking you hold it personally, as I don’t and I would be holidaying in the Caribbean at the moment instead of now being up to my 21st day straight of work after an 8 week enforced holiday. My comment was more intended that if you didnt have the coin in the bank (and who would, accept maybe DK), you needed to make sure you had the availability of coin, as in insurance, yeah I could have said that clearer.

    I must be the oddity out there If I am asked by someone when my business started I can always look back at the date of my very first email sent on this quest. dated the 8th of August 2006, wow thats scarey, I said I would only do it for a couple of years, while getting over issues from my previous life, but I digress. That first email was to an insurance broker, not asking how do I cover myself, but what do I need to do to cover my clients, sure a consequence may have being that I was covering myself, but the first thought in my mind was the client. Because yes we are all in business to make money for ourselves, but at the end of the day if we don’t have happy and healthy clients, we don’t have a business (catch 22 really). I guess my thoughts are if the client doesnt come first, I’m cooked anyhow. I am not saying that the client is always right (I have said that often on here), just that we need to look after them. Strangely it wasnt until a few weeks later that I asked the broker about covering my tools and equipment and vehicle, which for some I have gone down the self insurance road, as I have the coin to cover a few hundred dollars for equipment, but not a couple of million to cover a clients health (ah the Caribbean).

    I guess my comments in general were more born out of the general context of most questioning and answers on here in regards to company setup, insurance, etc, etc. Most if not all are based on the question how do I protect myself if I go bust, very rare if ever have I seen a question based on how do I protect my client. Without a client no business is in business.

    End of counter Novel

    PS for the OP, yes you must have insurance, not because the law says you must (a sad situation really), but you must protect your client.

    PPS for Jason, sadly us sole traders haven’t done well out of all of this, all the supports are for companies and big business, even Job Keeper is skewed against the sole trader, but thats for my next bottle of red.

    #1224283
    Phoebe_JJ
    Member
    • Total posts: 4
    sueallen, post: 271169, member: 119375 wrote:
    Hi I’m wanting to make bath bombs and sugar scrubs at home to sell on my facebook page to start up do I need any insurances to do this

    Be careful, I tried to do this a while back and had to deal with skin sensitivities to ingredients used in bath bombs. It was a real nightmare to deal with! But goodluck.

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