Do You Need Insurance To Sell Bath Bombs?

Finally, and perhaps most importantly, before selling homemade bath bombs, you should purchase an insurance coverage that covers both your property and your responsibility.

Do you have to have insurance to sell bath bombs?

You don’t need insurance to sell your homemade goods unless you’re going to a craft show or event. Bath bombs and soaps, on the other hand, carry a higher danger due to the use of corrosive chemicals and the possibility of allergies.

As a result, we strongly advise having insurance in place in the event of a problem affecting you or the general public.

Are bath bombs regulated?

There has been a great deal of misunderstanding and disinformation about what the FDA regulates and does not control, what FDA-permitted uses mean, and how this affects the cosmetic, soap, and bath product sectors. However, for better or worse, it’s actually quite simple.

What Does The FDA Regulate?

Let’s start with this: “FDA must approve all color additives used in cosmetics (or any other FDA-regulated product).” 1

“Products that fit the definition of “soap” are free from the restrictions of the FD&C Act because, despite the fact that Section 201(i)(1) of the act includes “articles…for washing” in the definition of a cosmetic, Section 201(i)(2) of the act removes soap from the definition of a cosmetic.”

2nd (Emphasis ours)

They control cosmetics, but not soaps, as you may have guessed. That sounds simple, but there’s a follow-up question: “When is a cosmetic a soap, and vice versa?” Here’s what the FDA has to say about it:

  • The majority of the nonvolatile substance in the product is an alkali salt of fatty acids, and the alkali-fatty acid complexes are responsible for the product’s detergent qualities.

In other words, if it isn’t soap as defined by the FDA, it is subject to regulation. It’s also worth noting that “articles…for cleansing” are regulated. This implies that just because it cleans you, the FDA does not consider it soap.

Even if they contain some soap, bath bombs, bubble bars, sugar and salt scrubs, lip scrubs, and the like are not classified soap by the FDA and are thus regulated and must follow their criteria.

And That Means?

The FDA divides approved usage into three categories4 (some of which you may recognize from our labels):

  • Generally (Includes Lipsticks) – please note that this is presented on our site and labeling as “General (Including Lips).”

One thing to keep in mind: any mucous membranes are included in the Generally (Includes Lipsticks) category. That information came directly from our FDA contact. If it’s not authorized in this category, it can’t be used in bath bombs, fizzies, bubble bath, or other similar products.

If you wish to use one of our colors to produce eye shadow, make sure it’s approved for “eye area” use. What about nail polish? External Applicability (pretty much everything is approved for external, though some have restrictions)

So. According to FDA standards, any color you wish to use for whatever you’re manufacturing must be allowed in that region.

And Glitters?

We’re sure this will upset a lot of people, but here’s the official word from the FDA: glitters are not allowed colorants in cosmetics. We’re aware. Bummer.

Traditional glitters, regardless of how they’re manufactured, are generally out. We do carry a few glitter-like micas (our Sparkle Me Series is wonderful and comprised completely of bath-bomb safe components), but traditional glitters are generally out.

So Now What?

To make things a little easier, we have a “Color By Use” option in the pulldown menu, so if you’re looking for items that are safe for your eyes or lips, that’ll be your starting point.

And, if things change, we’ll do our best to stay on top of it and notify you as soon as possible.

What is required on a bath bomb label?

It’s a good idea to make sure the following information appears on your bath bomb labels: Name and logo of the company. The product’s name (Bath Bomb)

Can you sell soap without insurance?

The following are some of the most often asked questions via my Modern Soapmaking contact form:

Hurray! Insurance! It’s such a fascinating subject. (Could someone perhaps remove my sarcasm?)

Here’s how it works. I understand that insurance is costly. I sympathize with you, I truly do. I’ve been paying for insurance for almost five years, despite the fact that I no longer sell soap. Why? Let’s see if we can figure it out by answering these questions!

Why do I need insurance to sell my soap?

Product liability insurance protects you from lawsuits brought against you as the maker and seller of your products, such as soap, lotions, and lip balm. It’s a frequent misconception that if you formulate your items perfectly, nothing can go wrong, thus you don’t need product liability insurance.

Product liability insurance covers you not just when it comes to creating, but also when a customer claims that a product was not properly labeled or had insufficient warnings for their specific needs. Let’s say you’re making soap with oatmeal and don’t mention that the oatmeal was processed on the same machinery as wheat.

In addition, purchasing insurance from one of the recommended sources below will cover the cost of replacing damaged goods. Have you ever gone to a play that was rained out, resulting in the loss of hundreds of soap bars? That’s not fun at all.

Manufacturers aren’t the only ones that need product liability insurance. If you acquire soap under a private label or custom manufacturing agreement and then resell it, you are putting yourself in the stream of commerce that ultimately puts the product in the hands of a consumer. It is completely feasible that every entity along the chain of trade, from the manufacturer to the sale, will be involved in the case of a claim.

Do I really, really, really need insurance?

Yes, yes, yes, yes, yes, yes, yes, yes, yes, yes A consumer claim might throw your company out of business and even drain your personal assets. Product liability insurance acts as a safety net to assist you in dealing with any claims that may arise. Putting yourself at danger, even if the hundreds of soapmakers you know swear they have never dealt with a claim, is not a good idea.

You could produce PERFECT soap, but if a customer has an allergic response or has a medical problem, they may believe you are to blame for not protecting them.

Do I still need insurance if I don’t sell my soap?

If anyone else uses your soap, lotions, or other products, you’ll require product liability insurance. Even if a customer does not buy a product from you, you can and will be held liable for it.

Let’s say you present ten bars of soap to your Aunt Jemma since she adores it. Susan asks Aunt Jemma if she can sample a bar after she gushes to her coworkers. Aunt Jemma sends Susan a bar of your beautiful soap to share the love, and Susan has a strong reaction to it. Susan is forced to visit a doctor, incurring costly expenses, only to discover that she is allergic to coconut oil. Guess who she’ll go after to get her medical bills paid?

How about if I just teach soapmaking?

Yes, insurance is still required. When you teach someone how to create soap, you become responsible for their conduct while learning. They will hold you accountable if they learn how to make soap from you and then injure themselves!

Fine, fine, I get it. Where can I get the right kind of insurance?

Soapmakers can receive the insurance they need to provide and sell their products to others in one of three methods.

RLI Corp* provides insurance for home-based businesses with total sales of less than $5,000*. If you’re a beginner or a hobbyist, this is the ideal covering for you because it allows you to get your feet wet. They don’t cover chandlers, but they do cover the most common bath and body product categories.

If you’re anything like me, your first year in business may exceed $5,000 in gross sales, therefore you’ll need a better choice. In our industry, there are two trade groups that provide complete insurance as a member benefit. To be qualified for insurance coverage with either group, you must first join the trade association. I’m a member of the Indie Business Network, and the Handcrafted Soap & Cosmetics Guild is another option. On top of the insurance, both organizations provide a host of other member advantages!

If you teach soapmaking as well, you’ll need to modify your insurance policy to incorporate that coverage. By default, it isn’t included.

Do you need FDA approval to sell bath bombs?

Bath bombs are cosmetic if they only clean the body or make the person smell nice. Cosmetics don’t need FDA approval before going on the market unless they contain a color additive. (Color additives must be approved by the FDA.)

Cosmetic companies can voluntarily register their products with the FDA Voluntary Cosmetic Registration Program (VCRP) to contribute to cosmetic safety research.

Your bath bombs are a medicine if they promise to treat or prevent symptoms or sickness, such as aromatherapy bath bombs. Drugs are subject to more stringent rules than cosmetics, and they must be approved by the FDA for their safety and effectiveness.

Why Not Just Label As A Cosmetic?

Why not simply identify your bath bombs as a cosmetic, as cosmetics do not require FDA approval?

If there is reliable evidence that a cosmetic product on the market is mislabeled or hazardous when used according to labeled directions or as recommended, the FDA can (and will) conduct an audit.

Is selling bath bombs profitable?

Knowing how to produce bath bombs is a must if you want to establish your own small-scale bath bomb business. Of course, you may buy and sell bath bombs; that is one option, but the focus of this post is on the process of producing your own from scratch.

Is it easy to make bath bombs?

The beauty of producing and selling your own bath bombs is that anyone can do it and start their own small business with very little skill and money. Because bath bombs sell for a good price, the profit margin between the cost of creating one and the cost of selling one is very high, allowing you to quickly reinvest and scale up.

Product Development

Bath Bombs don’t require any complicated or difficult-to-find ingredients. The majority of bath bomb ingredients may be found in any grocery store. If you want to start a business selling bath bombs, you should look for a place where you can buy the products in bulk. Thankfully, there are several possibilities online where buying in bulk allows you to save money, lowering the cost of your bath bomb and increasing your revenues.

Are bath bombs a profitable business?

There are a few more reasons why you should consider creating bath bombs and cashing in on this trend, aside from the fact that it’s a lucrative business with rising customer demand: Low initial startup expenses. Starting a bath bomb business is extremely inexpensive because most of the components are likely already in your home.

Lush has a utility patent for combining baking soda and citric acid to generate an effervescent bath solution that has been approved and is legally enforceable. Lush’s bath bomb patent can be found here. Lush’s technique is protected by a patent that was issued in 2014 and will last until 2034.

If you want to double-check that it’s a valid patent and hear it straight from the horse’s mouth, go to the USPTO.

Start the patent search by selecting “application number” and entering the relevant number for the Lush application >> US 13/702,511.

This is a utility patent that covers the actual functionality of combining citric and soda to make an effervescent bath product that can be molded. The technique, not a precise recipe, is what is protected. That means that significantly modifying their recipe (even if we were aware of it) would not invalidate their patent. It’s worth noting that recipes can’t be patented. Patents can be applied to unique techniques, and Lush claims to have invented this one in 1989.

It’s also not a design patent, so it doesn’t cover things like colors and mold. It is properly protected because it is the basic technique of making a bath bomb.

The good news for bath bomb makers everywhere (hooray!) is that it looks that Lush only holds a patent for a two-layered bath bomb technique.

Their application calls for two separate baking soda + citric acid mixes in two different ratios, with one core bomb encased in another to boost effervescence. It does not appear to preserve bath bombs that are created and molded with a single mixture of baking soda and citric acid, as most of the startup apothecary companies I know do.

BOTTOM LINE: I believe we can make and sell bath bombs lawfully as long as they aren’t made using a two-layer procedure using two different baking soda + citric acid mixes.

Soapmakers are ecstatic!

How do you stamp a bath bomb?

Use the cookie stamps to decorate your bath bombs, pressing down firmly and evenly throughout the entire image. If the bath bomb mixture sticks to the stamp when you lift it, damaging the design, try letting the bath bombs dry with the stamp in place first and then removing it.