Has anyone dealt with a customer threatening legal action?

First thing: stop responding to her directly. Forward everything to your insurance company. That's what you pay them for. They have a duty to defend you. I went through a similar thing with a candle business and the moment I filed a claim, the insurer took over all communication.

Do you have a record of the batch she used? If you keep batch logs, pull them. Also check if she signed any kind of waiver or if your product has clear warnings about patch testing. That could matter later.

Honestly, most of these threats are just noise. People say they'll sue but rarely do. But you still can't ignore it. I'd call your insurer today. Not tomorrow.

This is why I stopped selling skincare. Too many variables. I hope it works out.

Does she have actual medical documentation? A real lawyer would want proof before taking a case. If she's just sending angry emails with no records, that's a different story. But again—let your insurer decide. Don't try to evaluate the claim yourself.

GrumpyBiscuit is right. I had a customer threaten to sue over a custom quilt that shrank after she washed it in hot water. My insurance handled it. It cost me nothing except some stress. They sent her a letter and she went away. Don't accept blame in writing though. Never say 'sorry for the injury' in an email.

What does your policy actually cover? General liability? Product liability? Make sure you know what you're filing. If you don't have product liability, this could get messy.

Needle_and_thread makes a good point about apologies. Some states have 'apology statutes' that protect expressions of sympathy, but don't test it. Just don't write anything that could be read as an admission.

If she's asking for a specific amount, that's a red flag for a cash grab. But even if it is, you still need to treat it seriously. Insurance first, then maybe a short consult with a local attorney if the insurer seems slow.

Also, check if your policy has a 'duty to cooperate' clause. If you don't report it promptly, they could deny coverage. Don't wait for her to actually file. Report the threat itself.

I'd also look at her social media. Sometimes people post about their 'injuries' and then you see them doing normal stuff. But be careful—don't harass her. Just screenshot anything public. Your insurer might want it.

Any update? Hope you're doing okay. This kind of thing is rough on small business owners.

Are you sure she even used the soap correctly? People do dumb things. But that's not your problem. Let the pros handle it.

Just remember that if this does go to court, your insurance company will provide a lawyer. You don't have to find one yourself. That's the whole point of liability coverage. But you have to report it now.

I disagree with OldDuckTape. Digging through her social media could backfire if she finds out. Better to stay hands-off and let the insurer do the investigating. Just my two cents.

The OP hasn't replied in a while. Probably busy dealing with this. If you're reading this, OP, don't lose sleep over it. Most of these threats are just that—threats. But you did the right thing by asking. Now go call your insurer.