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Business Insurance For Candle Makers

Compare business insurance quotes with Savvy to find the best policy for your candle-making business 

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, updated on August 1st, 2023       

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We’ve partnered with BizCover to bring you a range of business insurance policies to help you compare them side by side.

The warm glow and sweet scent of a flickering candle can bring romance to any dinner setting – but it also introduces the danger that accompanies an open flame, with the ever-present risk of setting other things alight. For this reason, those who produce and distribute candles need good business insurance to protect them in case anything goes wrong, such as a claim that a faulty candle caused a damaging fire.  

You can compare quotes for all types of business insurance here with Savvy. Just answer a few simple questions about your business and the insurance you need, and within minutes you’ll have multiple quotes from a range of respected insurers to compare. Use our quick and easy comparison service to make sure you get the best-value insurance for your candle business today. 

What types of insurance should I buy for my candle business?

It doesn’t matter whether you make your own candles or wax melts, or have a thriving online business selling candles, there are several types of business insurance you should consider to protect your business. These include: 

Public liability insurance 

Public liability insurance is essential for anyone who has a shop, or who sells their products at a market stall. It will cover you against claims that your business activity caused injury to a member of the public, or damaged their property. It’s too easy for a customer to accidentally trip over a power lead you may have placed on the floor, which could lead to a claim for personal damages or injury. Public liability insurance can offer between $5 million and $20 million worth of cover, and is compulsory for retailers and market stallholders in many cases. 

What it covers:  

  • Third-party personal injury claims 
  • Damage to a third party’s property 
  • Legal fees to defend yourself 

Product liability insurance 

Product liability insurance will cover you against third-party claims that a product you sold was faulty or caused material loss, sickness, injury or death. This type of insurance is important for anyone who sells candles, wax melts, fragrances, or any skin or beauty products, as anything which is ingested or put on the hair or skin carries the additional risk of intolerances, allergies and bacterial infection. Cover starts from $250,000 and can be bundled together with public liability into a business insurance package. 

What it covers:  

  • Claims that a product you supplied caused sickness or injury 
  • Third-party damages claims 
  • Legal fees to defend yourself 

General business insurance 

General business insurance may also be worthwhile if you have candle-making equipment and stock to protect as part of your retail business.  It’s possible to get a bundle of general business liability insurance (which includes elements of public liability and product liability insurance), so that you have all your business insurance requirements in the one policy. Commercial vehicles aren’t included under business insurance, so you may need separate commercial vehicle protection for your work vehicle.  

What it covers: 

  • Fire, storms, theft, vandalism and collision which cause damage to your business assets 
  • Specialist cover for portable business equipment  
  • Limited business interruption insurance 

What isn’t covered under my candle business insurance ?

Some of the most common general exclusions include: 

  1. Injury to yourself or your employees 
  2. Flood damage 
  3. Glass breakage
  4. Unlawful activity or criminal negligence 
  5. Reckless behaviour or intentional damage 
  6. Anything to do with asbestos 
  7. The effects of pollution caused by your business activity 

How much does business insurance for a candle-maker cost? 

There is no set cost for an insurance policy, as each applicant is different and faces unique risks. There are many factors that influence the cost of business insurance, including the following:   

  • The state you live in  
  • Whether you live in a rural or urban area 
  • Whether you’re a sole trader, are in a partnership, or run a business 
  • The nature of your retail business 
  • Your business size and turnover  
  • If you have any employees 
  • Your insurance history 
  • Whether you’ve made an insurance claim in the past five years 

The main factor which will affect the cost of your insurance is the industry and occupation you’re in. All businesses in Australia are classified according to the risk their industry poses, and are allocated a risk ratio. These ratios are used by insurers to calculate the comparative risk of any one business compared to another. Therefore, the cost of insurance for a business in Adelaide specialising in candles, soaps or wax melts may be similar to that for the same type of business in Melbourne.  

You can find out how much insurance will cost for your business by comparing quotes right here with Savvy. Whether you need a long-term insurance policy or cover for a one-off event, you’ll be able to compare your options to help you find the policy best suited for your business needs. 

Why do I need insurance for my candle business?

You’ve no doubt worked hard to build up your reputation and gain a network of clients who love your products, so it makes sense to protect all that hard work in case things go wrong. Product liability insurance is there to protect you and your business against a range of claims that a product you supplied caused harm in some way. It doesn’t matter whether you have a retail outlet, or sell your products online through a home business, you still need liability insurance to protect you.  

Most small businesses have some contingency funds put aside for rainy days, but these emergency funds are rarely sufficient to cover the cost of a major catastrophe. If this happens and you have adequate insurance to protect all aspects of your business, you’ll have a much better chance of getting back on your feet quickly. 

Types of business insurance

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More of your frequently asked questions about insurance for candle businesses.

Will my business insurance cover me if I hold candle-making classes or workshops?

This will depend on the exact policy that you choose to buy, so it is important to read the small print of your policy carefully so you know exactly what is, and is not covered. It is also possible to buy insurance designed specifically for those wishing to hold classes and workshops, so ask your insurance company if this type of insurance is appropriate for your individual needs. 

If I don’t have product liability insurance, can I be held personally liable if one of my candles causes a fire?

Yes, you can be held personally liable if it is proven that a candle you supplied exploded or caused a fire. For this reason, it is very important that you have adequate business insurance to protect your personal assets.  

How often will I have to pay my insurance premiums? 

You will be able to choose how often you pay your insurance premiums. You can either pay upfront all in one go for the year, or in monthly instalments. Paying your insurance premium annually is usually between 5% – 10% cheaper than paying monthly, so if you’re in the position to pay your insurance annually, it may be worth doing so to get the cheapest price.  

What information will I need to make a claim?

The information you should have to hand when you contact your insurance company to make a claim will include: 

  • The name of the policyholder 
  • Your policy number and start date (which can be found on your Certificate of Currency) 
  • A detailed description of the incident (what happened to cause the damage or loss) 
  • Specific dates and times when the incident happened 
  • Contact details of any other parties involved (or witnesses to the event) 
  • Details of your police report number (if a crime took place) 
  • Details of the property lost or damaged (including its age and value) 
  • Your bank details for settling the claim 

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Savvy does not compare all business insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.

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