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Product insurance for a hobby selling hair clips?


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13 replies to this topic

#1 soapy

Posted 02 June 2014 - 10:48 PM

Hi! I have had a little business in the past selling hair clips but I got busy and had to stop. I want to start it back up again but somewhere along the line I came across product insurance. I would be selling on FB, ETSY and maybe Made it. Do I need it? If I put a disclaimer on my products stating that they are not a toy and not suitable for under 3s? Is this enough? I suspect by the time I paid insurance that it wouldn't be worth doing. I'm not really sure where to find out about this kind of thing. Thanks in advance for any information. :)

#2 soapy

Posted 04 June 2014 - 03:10 PM

Nobody? I rang AAMI but because I would be selling a product for children they can't. Even though it would be for over 3 year olds.

#3 HRH Countrymel

Posted 04 June 2014 - 03:16 PM

I sell jewellery.  Sharp edges, pointy bits, opportunity to ram it in your ear and get an infection that turns gangrenous.

I've never even heard of product insurance let alone taken out a policy.

And I can't see myself doing it in the future either..

#4 valentlau

Posted 04 June 2014 - 04:28 PM

Wouldn't a lawyer be the best to ask? Not worth getting sued selling hair pins.

#5 Jembo

Posted 04 June 2014 - 08:14 PM

Try an insurance broker.   We use OAMPS.    But yes technically if anyone is making and selling products then you should have product liability insurance.

Unfortunately it is very expensive, we have had ours for years and each year it seems to go up, even though we have never had a claim, drives me nuts.

Making for kids makes it expensive, selling overseas makes it even worse.  We ended up stopping overseas sales because of this.

#6 soapy

Posted 04 June 2014 - 10:17 PM

I asked a friend and she said about $60 a month but that is with public liability which I don't need. Her items are probably more an older market. I guess really the types of clips/bands I would be making could be worn by any age group but would be attractive to children. I am a bit disappointed as I was so looking forward to starting this up but it might be stopped before I have gotten anywhere (apart from already buying supplies). I just wanted it as a small thing and paying that much a month (or more) might make it not worth it's while. However I will look into it a bit more before giving up. Thanks for all the help and it anyone else has any ideas or experience I would love to hear about it. Thanks PP and TIA.

#7 jovana

Posted 04 June 2014 - 10:35 PM

I am making homemade cosmetics and was thinking of selling. I wouldn't even dream about selling without product insurance.
It's not same as public liability. I pay public liability premiums for my other jos and it's about $1000 per year. Product insurance on the top of that would have been another $1000. And only QBE was ready to insure me, aparently, no other insurer would.
I gave up in the end, as it is really expensive, I heard Etsy sales can be slow, and I don't have time for local markets. There was no way I would even be able to cover insurance costs, let alone the rest.
I don't think is illigal to sell without it, but it sucks, as it is expensive. But I wouldn't really sell anything homemade without it.

Edited by jovana, 04 June 2014 - 10:36 PM.


#8 soapy

Posted 04 June 2014 - 10:49 PM

I wonder if it's even possible to get product insurance without public liability.

#9 jovana

Posted 05 June 2014 - 07:11 AM

I think it is. But it might be compulsory for someone who sells at market stalls.
If you can find government authority that deals with selling homemade craft like yours, ring them, and they might be able to tell you all the details.
I rang ATO, NICNAS and my insurance provider, they were all happy to help with information.

#10 soapy

Posted 05 June 2014 - 02:56 PM

It's funny that there is a site called 'Made it' so encouraging home made items. Would they be liable also?

#11 Jembo

Posted 05 June 2014 - 08:26 PM

Quote

It's funny that there is a site called 'Made it' so encouraging home made items. Would they be liable also?

No, the people who sell on their are liable, they are responsible for their products.  Madeit is just a selling platform the same as a market.

With markets, some will provide you with public liability insurance, some make you have it.   If you aren't doing markets and stuff and only selling online you wont need it.

You would find that 90% of people that sell on places like madeit dont have any insurance. It is not a requirement to be able to do it, but it is also about your level of comfortability and risk.

Unfortuantely insurers see it as a big risk and it is very hard to find someone to insure you and very costly.  We had only one who would insure us despite 6+ years with no claims.

We sell all of our items with tags on it saying not recommended for babies etc etc, please always check item for wear and tear and dispose of if find any etc.

#12 Puggle

Posted 05 June 2014 - 08:33 PM

Here you go, have used them for years:

http://www.freemanmc...-liability.html

#13 melmax

Posted 05 June 2014 - 08:33 PM

Yes most reasonable I have found is Victorian woodworkers association, about $200 per year. Wouldn't be without my insurance. Not worth losing my house over :)

#14 soapy

Posted 05 June 2014 - 11:13 PM

Thanks all!




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