Now, you can now join HBN and get the coverage you need to protect your business -- all with one easy step! Here's a coverage overview:

$1,000,000 annual general aggregate coverage
$1,000,000 products liability coverage
$1,000,000 advertising injury coverage
$100,000 coverage for damages to rented premises
$5,000 medical expense coverage

Increased coverage is available for members requiring more than this. Plus, there's a lot more to the basic coverage package, including some "floating" coverage to protect your property when you are exhibiting at a trade show, doing a craft show or selling your products on consignment at a boutique! The coverage is extremely competitively priced, and you get it (and all the other great HBN member benefits!) immediately when you join HBN!

Here is a list of Frequently Asked Questions and Answers, which is being updated frequently to help serve you better.

How did HBN's Products Liability Insurance Program come about?

When HBN launched in January 2000, there was not a great need for a special insurance program, but this changed quickly as the industry begin to grow and expand by leaps and bounds. By early 2001, HBN arranged an insurance referral program through a broker who worked closely with RLI Corp. to provide insurance to home-based businesses, and to provide reasonably priced insurance for non-home-based businesses. After 9/11, the insurance industry changed dramatically and it became more difficult to source insurance for non-home-based businesses. RLI Corp. remained the best option for home-based companies so HBN's referral program continued through them and the broker we worked with. In late 2005, RLI announced clarified that it's policy was to cover home-based "hobby businesses," and that as a result, it would no longer cover businesses that grossed in excess of $5,000 per calendar year. This forced members to either cap their growth at $5,000 a year or grow beyond it and be forced to pay well over $1,000 a year for coverage. While there were other options for some members (including AARP), the vast majority of HBN members were stuck.

HBN received more email, phone calls and letters about this issue than about any other issue in the 6 years of its existence. In recognition of the high priority HBN members placed on this issue, and considering that if it was not resolved, the entire industry was at risk, HBN made it a top priority for 2006 to find affordable coverage for members so our industry could continue its vibrant and robust growth. On February 13, 2006, on behalf of HBN's members and the members of the Handcrafted Soap Maker's Guild and the Natural Perfumery Group, HBN wrote a letter to RLI Corp.'s President seeking reconsideration of their decision and offering alternatives. HBN invited a meeting, by phone or in person to discuss the options.

On behalf of RLI's president, Assistant Vice President Brian Hoover, responded to our letter. You can read that response letter here. As you can see, RLI they did not change its policy (and we did not expect them to), the letter does shed some light on what lead to their decision. Specifically, Mr. Hoover said, "[I]t became apparent that some small business owners were placing heavy reliance on [our] Program for product liability coverage for the manufacturing of personal care products. This reliance presents a substantially greater exposure than RLI can accommodate and threatens the integrity of the Program for the small hobbyist business for which it was designed."

HBN immediately formed a Task Force to address the issue. Suggestions poured in from all over the country. Eventually, one insurance broker stood out as possibly willing to help locate an insurer that would offer low premiums in exchange for volume purchases. Eventually, HBN entered into an agreement with the broker, who entered into an agreement with the insurer, and HBN's Products Liability Insurance Program was born on September 8, 2006.

Who is the insurance provider?

Colony Insurance Group, an A rated carrier.

All of your questions about your policy should be addressed as follows:

Ms. Madison V. Egbert
(866) 395-1308
Egbert@StratusIns.com
fax: (801) 763-1374

How much does the insurance cost?

$395 per year for $1,000,000 annual general aggregate coverage. This can be increased to $2,000,000 for just $55 more per year. Additional premiums may apply for larger companies and companies needing additional coverage.

Is payment in advance required, or can payments be made in installments?

Payment in advance is required. It is not possible to process installment payments for premiums as low as we are offering.

Is the premium refundable?

No. The policy becomes effective as soon as payment is processed when you join HBN. The policy will cover you for a year in exchange for payment in advance of the policy premium. You may choose to renew it or not when it expires, but it is in place for a year and the premium is not refundable.

Does obtaining this insurance change my HBN membership dues, or any of my other HBN member benefits?

No.

Is there a cap on gross revenues with this insurance?

No, but if this program is significantly insufficient for your commercial manufacturing and/or retail establishment, your premium may be higher. Check with Madison Egbert to be sure.

How do I procure this insurance?

Simply join HBN and you will be asked to complete an Insurance Questionnaire and send it to Madison Egbert.

When will my insurance become effective?

Immediately upon processing of your HBN membership application and your return of the Insurance Questionnaire to the fax number provided thereon.

Where do I get my certificate of insurance?

Madison V. Egbert, (866) 395-1308. Ms. Egbert and her staff will issue your certificate of insurance. They can also send you a copy of the Master Policy, or you may contact HBN for that. Your certificate of insurance will contain your company name and incorporate the Master Policy by reference. The Master Policy will not contain your company name specifically since the Master Policy applies to everyone who has a certificate of insurance.

What if I want to include Additional Insureds?

You may include up to 5 Additional Insureds during one calendar year. Additional ones are available at $25.00 each.

Can I get this insurance if my business is located outside of the United States?

Yes, if you also have a physical address in the United States where work related to your business is performed.

Can I join HBN and not get the insurance?

Yes, under these conditions:

1. You already have the insurance through the Handcrafted Soap Maker's Guild; or
2. You reside outside the coverage area of the policy; or
3. You get more than 20% of your annual revenue from the sale of ingredients, supplies and/or non-consumer products.

If I want to join HBN, must I also purchase the insurance?

Yes, unless you meet one of the conditions above. (If you wish to join HBN but already have insurance elsewhere, please email HBN for more details.) But that doesn't mean you cannot procure products liability insurance since it is available elsewhere. If you are a home-based business with less then $5,000 in annual revenue, you may be able to get insurance through RLI Corp. The contact for this is Sue Hegge at (800) 697-6747. If you are not home-based, but still wish to have coverage without joining HBN, you can contact Kathy Francis at (800) 332-9256, ext. 135. Sue or Kathy can refer you. You can also check any local insurance companies in your area that provide business insurance. 

Why does insurance come with HBN membership, except in certain circumstances?

HBN carefully considered (really agonized over) the issue of requiring purchase of insurance with membership. On balance, since not having affordable insurance was threatening to put so many members out of business, and also prevent others from launching a business with the insurance they needed, it became clear that we would have to be able to deliver volume in order to get an insurance company or a broker to provide insurance to our industry participants at all. If only a portion of members participated, the coverage would be far more expensive -- prohibitively expensive for hundreds of HBN members who cannot obtain coverage elsewhere. This was a difficult decision for HBN, but as an organization representing members who desperately need products liability insurance to grow -- and who also need affordable rates -- we had to make it more likely than not that a new member would benefit from, and therefore choose to purchase, the insurance..

What if I am already an HBN member? Can I continue with my membership even if I do not get the insurance?

Yes, if you are currently a member of HBN, your membership benefits will remain in full force and effect until your membership expires. Once it expires, you may choose to renew it (and we hope you will!!), and it must be renewed with the insurance benefit. If you are a current member and wish to add the insurance, please complete the membership application and submit it afresh. In this way, your membership and insurance will start effective immediately and both will renew at the same time next year, but your membership start date will not change.

What if I have insurance elsewhere but also want to join HBN?

If you have insurance anywhere other than through the program of the Handcrafted Soap Maker's Guild, please email HBN with questions.. If you have insurance through the Soap Guild, when you join HBN, click on the membership category that says "Full Member Without Insurance" as indicated in the Member Category section of the membership application. You can complete the Insurance Questionnaire, pay for the insurance and your dues will be prorated so your next HBN membership renewal and insurance premium are due on the same date next year. Please email HBN if you fit into this category.