What happens if a candle you sold causes a fire in a customer’s home, and they blame you?
If you sell candles at markets, online, or wholesale, having insurance safeguards your business from paying for certain accidents. But not all insurance covers the same risks.
Choosing the right policy depends on how and where you sell, not the size of your business. This guide to insurance for candle makers explains what coverage you need and when to get a policy like ACT Go for events or ACT Pro for ongoing protection.
TL;DR — What Insurance Do Candle Makers Need & How Do I Choose?
Candle making insurance can protect you from paying out of pocket for accidents or damages caused by your business. Here’s how to choose coverage based on how you sell:
Choose ACT Go if:
- You need general liability insurance for occasional, in-person events
Choose ACT Pro if:
- You sell your candles online, wholesale, or at events lasting 90+ days of the year
- You want product liability insurance for claims against your candles, not just your business
🕯️Ready to protect your candle business? Get a free quote with ACT.
What Kind of Insurance Does My Candle Making Business Need?
Depending on how you sell, your business needs one or both of the following types of insurance for candle makers:
- General liability insurance: Helps if someone gets hurt at your booth or your business causes property damage during an event
- Product liability insurance: Covers you if a candle you made causes injury or damage after it’s been sold
If you’re starting a candle business, this is one of the most important insurance decisions to get right. We’ll explain these coverages in more detail later. For now, remember that these are two different coverages, and candle makers benefit the most from having both.
Choosing Candle Making Insurance Based On Where You Sell
Use this chart to match your sales setup to the coverage you most likely need, then compare ACT Go vs ACT Pro for a closer look at which policy fits your business.
| How You Sell | Common Risks & Requirements | The Coverage You Need | ACT Go or ACT Pro? |
|---|---|---|---|
|
Weekend Market Seller |
A customer trips over your booth display and sprains their ankle or the venue requires proof of insurance before you can sell |
General liability |
ACT Go |
|
Seasonal Pop-up or Show Vendor |
The venue requires coverage before setup or your booth damages the rented space |
General liability |
ACT Go |
|
Etsy / Shopify / Online Seller |
A customer claims your candle overheated and exploded, causing a fire in their home |
General liability + Product liability |
ACT Pro |
|
Wholesale / Retail Supplier |
A retailer wants proof of insurance before they’ll agree to sell your products in their store
|
General liability + Product liability |
ACT Pro |
|
A Combination of Events + Online |
You need coverage for in-person selling and for claims involving candles after customers take them home
|
General liability + Product liability
|
ACT Pro
|
⚠️ My Venue Requires Product Liability Insurance. What Changes?
Candles are higher-risk products, particularly due to fire hazards. Some events, including trade shows and large markets, require proof of general and product liability coverage. To sell at these events, you’ll need a policy like ACT Pro that includes both.
Different Types of Candle Businesses Have Unique Risks (Here’s Why)
Your brand niche and product variety make your business unique, but they also determine the different hazards you face. Here are some of the most common risks for candle businesses:
| Risks During Selling or Demonstrating | Risks After a Customer Takes the Candle Home | Risks Tied to Ingredients or Product Design |
|---|---|---|
|
|
|
Why Claims Can Happen Even When You’re Careful
You carefully choose your wax, fragrance oils, wicks, and containers to create a high-quality, safe product. Even with careful production and clear labeling, claims can still happen:
- At your booth: While using a wax melt at your booth, a shopper bumps into your display, and the spilled wax burns their arm
- During setup: A customer trips near your table, falls into part of your display, and gets injured
- After a sale: A candle jar overheats while burning at a customer’s home, cracking open and damaging the countertop
🛡️Do I Still Need Insurance if I Have an LLC?
Registering your candle business as an LLC helps protect your personal assets if your business gets sued. You still need insurance to shield your business from financial liabilities like medical bills, property damage costs, or settlements.
What Insurance for Candle Makers Can Help Cover
After an accident happens, insurance can cover certain costs that you’d otherwise have to pay yourself. The type of coverage you need depends on how and where your business operates.
General Liability
General liability can cover the costs of third-party injuries and property damage, like if a shopper gets hurt at your booth or strong winds knock over your display and ruin another vendor’s artwork.
When a venue or retailer asks for a Certificate of Insurance (COI), general liability insurance is the main coverage they want you to carry.
Product Liability
Product liability helps cover claims involving your candles after they’ve been sold, shipped, stocked, or used by a customer. For example, a candle’s flame burns too high and melts a customer’s wallpaper.
Product liability insurance for candle makers is included with an ACT Pro policy, and may be required by some markets, retailers, and wholesalers.
Theft & Damage (Inland Marine)
Theft and damage coverage, also called inland marine insurance, helps cover the cost to repair or replace inventory, supplies, and equipment that’s stolen or damaged while traveling to or selling at events.
Available with ACT Go and ACT Pro, this coverage helps protect your candles if they’re damaged in a car accident on the way to an event or stolen from your booth.
Workshop & Class Coverage
Workshop and class coverage helps if a person taking your candle-making class gets hurt or claims your services were negligent or inadequate.
A type of professional liability insurance, this coverage is ideal for candle makers who host occasional workshops, and it can be added to an ACT Pro policy.
Data Breach Coverage
Data breach coverage helps with cyber liability, meaning it can cover financial losses from cyber crimes, like if there’s a data breach or phishing attack and your customer’s information gets stolen.
A useful add-on for an ACT Pro policy, this coverage matters most for candle makers who sell online or use a point-of-sale device at events.
Pro tip: Venues, markets, and retailers might ask you to add them to your policy as an additional insured, protecting them from accidents caused by you or your business. You can do this for free on any ACT policy.
Selling at Markets & Fairs: When Event Coverage May Be Enough
For some candle makers, insurance is about being able to sell at occasional events and meet venue requirements, like getting a fast COI and adding additional insureds.
A short-term policy like ACT Go makes sense if:
- You sell at occasional craft fairs, pop-ups, or seasonal markets
- You need short-term coverage for specific events
- Your venue requires a COI before you’re allowed to sell
- Your annual sales are lower than the cost of year-round coverage
Selling Online or Wholesale: When Year-Round Coverage Makes Sense
When you’re selling your candles to a broader audience and growing your business through channels like retail or wholesale, your risks and need for coverage grow, too.
A year-round policy like ACT Pro is the best choice if:
- You sell online through Etsy, Shopify, or your own website
- Your candles are stocked by a retailer or boutique
- You sell year-round or across multiple channels
- You want to start wholesaling and need product liability coverage for contracts
What Happens When Candle Businesses Have the Wrong Coverage?
Have you ever bought a candle that smelled great in the store, but once you lit it at home, it wasn’t what you expected? Insurance can feel similar, especially if the coverage that worked before no longer fits how you sell.
When your coverage is insufficient or based solely on meeting venue requirements, it can leave you and the future of your business exposed. Regularly reviewing your coverage needs any time you make a change helps you stay protected.
Signs You’ve Outgrown Event-Only Coverage
Candle making businesses that start small can outgrow their coverage as they attend more events, expand their product lines, and increase their sales. You likely need more comprehensive coverage if:
- You’re selling more often than you used to
- You now sell online in addition to events
- A trade show, retailer, or wholesaler needs you to have product liability
- You start teaching workshops or classes in addition to selling candles
- You’re investing more in candle making tools, equipment, and supplies
How Much Does Candle Maker Insurance Cost?
Insurance for candle makers starts at $49 per event with ACT Go or $515 a year with ACT Pro. (That’s $1.41 a day for a policy that gives you $2 million in total coverage!)
The final amount you’ll pay depends on factors like your annual gross sales and whether you need additional coverage for your tools, workshops, or online sales. Because insurance is part of your overhead, this premium is often tax-deductible, too.
How to Choose the Right Insurance for Candle Making
To choose the right candle making insurance, ask yourself these questions about how you sell, where your risks happen, and what kind of coverage you might need:
- Do I sell my candles mostly at craft shows or markets?
- Do I prefer online selling through my website or Etsy shop?
- How often do I sell my products?
- Do I have plans to sell through retailers or wholesale?
- Do I need a COI to sell at markets or shows?
- How comfortable am I with the risks my candles create after a customer buys them?
- Would I be able to afford a claim for medical bills, damages, or legal costs if I had to pay them out of pocket?
For many candle makers, the biggest risks don’t end at checkout, making coverage that protects your entire business a better long-term fit.
FAQs About Candle Business Insurance
Do candle makers need insurance?
Yes, candle makers need insurance to protect their business from financial risks and product-related claims. Most candle businesses need a combination of general liability and product liability coverage. Insurance is also often required to sell candles at fairs, markets, online, and through retailers.
What is a Certificate of Insurance (COI) for a candle making business?
A Certificate of Insurance (COI) for a candle making business is an official document from your insurance company proving you have coverage for certain risks. Candle makers usually need a COI to sell at events, online, or through retailers.
Do I need a COI to sell handmade candles at craft fairs or markets?
Yes, you will likely need a COI to sell handmade candles at craft fairs, markets, or public events. Because of the unique risks associated with candles, some venues and event organizers may require proof of general liability and product liability coverage.
Contact your event organizer to verify their vendor insurance requirements and see what type and how much coverage you need.
Can I add a retailer or venue as an additional insured?
Yes, you can add a retailer or venue as an additional insured. You can do this while getting a quote with ACT, or afterwards from your online dashboard at any time.
ACT lets you add an unlimited number of additional insureds for free, helping you qualify when it’s required for events, retail, and wholesale.
JoAnne Hammer | Program Manager
JoAnne Hammer is the Program Manager for ACT Insurance. She has held the prestigious Certified Insurance Counselor (CIC) designation since July 2004.
JoAnne understands that starting and operating a business takes a tremendous amount of time, dedication, and financial resources. She believes that insurance is the single best way to protect your investment, business, and personal assets.
JoAnne Hammer is the Program Manager for ACT Insurance. She has held the prestigious Certified Insurance Counselor (CIC) designation since July 2004.
JoAnne understands that starting and operating a business takes a tremendous amount of time, dedication, and financial resources. She believes that insurance is the single best way to protect your investment, business, and personal assets.
