FAQs 1 — Beauty, Health & Trade Alliance Insurance Portal

Frequently Asked Questions

Insurance can be confusing. Let us help clear up some of your questions. Browse the FAQs below to find answers

About the Program and Who Qualifies

1. Who qualifies for the BHTA member benefit insurance?

Any Canadian BHTA member where 80% of their sales come from handcrafted items

2. What is meant by “handcrafted”?

For the purpose of this policy, "handcrafted" (or "handmade") means you either made it from scratch by hand, someone under your control made the product from scratch by hand or you purchased the unscented and/or uncolored product in bulk and added your own scent and/or color and/or other additive to distinguish it in your line of products. If 80% or more of your products are "handcrafted" within this definition, then they qualify for coverage under this policy.

Products that are made for you by an outside company and which you purchase packaged and ready to go do not qualify as handcrafted.

Not handcrafted: If more than 20% of your annual revenue comes from the sale of ingredients, supplies, products that are produced for you complete and ready to sell, and/or non-consumer products such as consulting or other services.

3. What Products Are Covered?

ELIGIBLE PRODUCTS AND OPERATIONS

The final product must be manipulated by hand or created entirely by hand rather than a machine.

Cosmetics: Intended to be applied to the human body for cleansing, beautifying, promoting attractiveness, or altering appearance without affecting the body's structure or functions. Products may be considered decorative cosmetics or care cosmetics, depending upon application and purpose.

Skin Care Products: These can fall under the category of cosmetics however these products are used to improve the appearance and health of skin, formulated for different types of skin and associated characteristics i.e. Cleansers, Creams, Essential Oils, Hair Care Products, Lipstick or Lip gloss, Lotions and Moisturizers, Perfume & Body Fragrances, Skincare Bases, Oils and Materials, Serums, Skin Care Products – Baby and Adult, Toiletries, Toners, Tools and Accessories – bags, brushes, mirrors, grooming supplies, Topical Ointments, Topical Products for Animals (Shampoos, Ointments, etc.)Moisturizers, Perfume & Body Fragrances, Skincare Bases, Oils and Materials, Serums, Skin Care Products –Adult, Toiletries, Toners, Tools and Accessories – bags, brushes, mirrors, grooming supplies, Topical Ointments, Topical Products for Animals (Shampoos, Ointments, etc.). Candles, wax melts, candle accessories

Moisturizing skincare products for infants will be considered on an individual basis.

INELIGIBLE PRODUCTS AND OPERATIONS

Tanning beds or equipment, Salon or Spa Operations, Nail curing lights, Electrical products, Aerosol products, Household Cleaning Products – if not made with 100% organic or natural products, Liquid Fuel gel candles, Pharmaceuticals, nutraceuticals, Drugs or medicines, any edible or ingestible products, Acetone-based Products, Formaldehyde or products containing formaldehyde, Furniture, Tattoo or Body Inks, permanent makeup, Vitamins or Supplements, children’s toys, natural health and cannabis regulated products.

4. When will my insurance become effective?

You will receive confirmation and policy documents from Steer Inc. when your policy has been bound, usually within 1-2 business days.

5. Does the Insurance cover home-based businesses?

Yes, this insurance is mainly liability, so it doesn’t matter if you work out of your home however, we recommend that you consult with your homeowners policy to ensure that your operations do not void the coverage afforded under that policy and to understand what coverage (if any) is provided for your business contents.

6. Can I make monthly payments?

No, your premium must be paid in full at inception.

7. Is the premium refundable?

Yes. This policy may be canceled with 30 days written notice by either you or the insurer subject to a minimum retained amount of 30% of the premium. The policy fee is fully earned.

8. What if I sell my product online, through a distributor or even outside the US and Canada?

You may sell your product in any way you want. As long as the lawsuit or claim is brought back to Canda or the US, the insurance policy will respond to your claim.

9. What if I want to attend Farmers’ Markets?

No Problem! Your liability coverage will cover you anywhere you go: Farmers markets, trade shows, local events etc. And if you are required to provide additional insured certificates, the policy allows for unlimited additional insureds, simply provide the details (venue, name, address and dates required) to mybhta@steerinsurance.com .

10. Do I need to purchase additional insurance if I open my own store?

If you open your own store where you sell beauty products, there is no need to purchase separate liability insurance. However, your landlord by contract may require you to carry additional coverages. For example, higher liability limits, and property coverage not only for your property but also for flooring, glass windows and doors and other permanently fixed items in the rented space.

11. Who do I contact if I have questions about the insurance policy and what it covers?

12. Is there a maximum allowable amount of revenue or US sales?

Yes. This policy allows for total revenues up to $1 Million dollars and a maximum of 37.5% US sales. If your sales are outside of these limits, you will be rated on an individual basis.

Insurance Coverage, Costs & Limits

How much does the insurance cost?

The insurance starts at $400 per year for $1M in liability coverage, $600 per year for $2M and $900 per year for $5M. Property coverage for your business can be added in increments of $10K($50), $25K ($125) or $50K ($200) and comes with an additional $5K of additional contents coverage for property on the move.

2. What is the coverage:

This is a Commercial General Liability Policy. Coverage is for businesses and individuals domiciled in Canada. The limits are:

$1M, $2M or $5M General Liability
$1M, $2M or $5M Products and Completed Operations
$500,00 Tenants Legal Liability
$1M or $2M Personal and Advertising Injury
$1M or $2M Pollution Liability
$1M or $2M Employers Liability and Employee Benefits Liability
$5,000 Medical Expenses Limit

Optional coverage:

There is also the option to purchase three levels of property insurance for your business personal property, which all include an additional $5K of miscellaneous property of a floating nature. This means it covers business personal property that you own or is in your care, custody or control while it is in transit or at an exhibition site, or in the custody of a sales representative.

$10,000 Business Contents + $5,000 additional contents (on the move) for $50
$25,000 Business Contents + $5,000 additional contents (on the move) for $125
$50,000 Business Contents + $5,000 additional contents (on the move) for $200

Deductible:

$1,000

3. If I sell my business, is the policy transferrable to the new owner?

No. The new owner would have to procure their own coverage.

4. When does the coverage expire?

The policy will expire a year from the day you purchase insurance. It is your responsibility to renew your membership with insurance before it expires 12 months from the day you join or renew, or the policy will lapse. A courtesy reminder will be sent to you via email we have on file on month, and again one day, before your policy expires.

5. Who is the Insurance Carrier?

CFC Underwriting Ltd. on behalf of Lloyds of London

6. Who is the insurance broker?

The insurance broker is Steer Insurance. They can be contacted by email at mybhta@steerinsurance.com.

Coverage Definitions

General Liability

Insurance that protects companies from common lawsuits arising from everyday business activities

2. Product Liability

Coverage protects an insured against claims that occur as a result of an insured's products that are manufactured, sold, or distributed. Completed Operations coverage protects against claims arising from a completed project or job.

3. Tenants Legal Liability

In almost every commercial lease, landlords will require tenants to provide evidence of tenants Legal Liability. Provides coverage for the space that you are renting if you, your employees or your operations cause damage to it. It is important to carefully review your lease agreement or contracts to ensure that you have the appropriate insurance coverage in place to protect your business.

4. Medical Expense

Coverage that reimburses others, without regard to the insured’s liability, for medical or funeral expenses incurred by such persons as a result of bodily injury or death sustained by accident under the conditions specified in the policy. This does not apply to the named insured or their employees.

5. Additional Contents/Inland Marine

A group of property insurance coverages designed to insure exposures that are not at a fixed location. Includes coverage for property in transit over land, certain moveable property, property under construction, and computerized equipment and property that is in your care, custody, and control. This coverage does not include structural property.

Additional Insured

What is an “additional Insured”?

An additional insured is a person or organization that is added to your insurance policy by endorsement – this is a common request.

When you add someone to your policy as an Additional Insured, you are extending your policy coverages to protect the additional insured from a lawsuit that was caused by your negligence.

In other words, if someone slipped in your booth and broke their arm, the injured person would sue you and the venue. Since the venue is added as an Additional Insured your insurance policy would protect both you and the venue in the suit.

2. When should I add an Additional Insured?

The majority of venues, promoters, vendors, or stores will require you to add them as an Additional Insured before they will allow you to occupy their premises and/or sell products.

Those that will require an Additional Insured status on your policy will usually have it written into a contract or agreement. It is a simple procedure to add them to your policy.

3. Can I add additional insured after I purchase my policy?

Yes, the policy allows for unlimited additional insureds, simply provide the details (venue, name, address, and dates required) to mybhta@steerinsurance.com and we will issue you a certificate.