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INSURANCE
Insurance isn't something most makers think about when they're just getting started, and not everyone get it right away. But as your business grows, it's worth understanding what's out there. I've researched the most commonly asked questions and answered them below so you can make the right call for where you are right now.
Do I Need Insurance?
Most makers don't get insurance right away. If you're just getting started with your online store or doing your first few markets, you can play it by ear and revisit as your business grows.
Etsy does not require insurance, and their Purchase Protection program will cover qualifying disputes, like a lost package or an item that doesn't match its description for up to $250. What it doesn't cover is product-related claims, like an allergic reaction or an injury caused by something you made.
If you plan on selling to boutiques or other businesses, insurance is generally expected.
If you make products that come into contact with skin, are ingested, or involve heat and flame like soaps, lotions, candles, food items, then it's worth looking into coverage to protect yourself.
What kind of insurance do makers get
and what does it cover?
Most makers carry general liability and product liability insurance, often bundled together in one policy. Policies typically start around $49 for a single event, or $200–$400 per year for annual coverage. When you apply, the provider will ask about your business and products to make sure you're getting the right fit.
General Liability covers incidents connected to your business operations — like a customer slipping at your booth.
Product Liability covers harm caused by something you made and sold — an unusual reaction to an ingredient, an injury, or damage caused by your product.
Many maker-specific policies bundle both together, but confirm that before you buy.
Does my Homeowner's or Renter's Insurance
Cover My Small Business?
No. Even though you are operating your small business from your home, General and Product liability are typically excluded from homeowner's and renter's policies, so you'll need a separate business policy to be covered.
What Is a Certificate of Insurance (COI)?
A COI is a one-page document that proves you have an active policy. Most craft fairs and markets require one before they'll approve your vendor application. Once your policy is active, your provider can generate one instantly.
Where Can I Get Maker Specific Insurance?
Below are several insurance companies that work with makers:
The companies listed below are a starting point for your research, not a personal endorsement. Take the time to compare policies, read the fine print, and choose what's right for you.
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HandMade Insurance — handmadeinsurance.com Not Available in Alaska, Delaware, DC, Hawaii, North Dakota, Rhode Island, South Dakota, Wyoming, and New Hampshire