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Do I Need Business Insurance To Sell on Etsy?
“Do I need insurance to sell on Etsy?” It’s a common question for small business owners and makers. The answer is that you don’t have to necessarily get insurance to sell or operate on the site. However, Etsy business insurance is recommended to help protect you from product liability claims.
It’s also important to look into legal requirements before you start selling. Depending on the state you’re in, you may need a business license to sell on Etsy.
For example, if a customer gets an allergic reaction to paint supplies that you’ve sold on your Etsy store, they could file a claim against you. A product liability insurance policy can help pay for the customer’s medical costs. This policy can also help cover any property damage your products cause. Generally, insurance company’s offer this coverage as a standalone policy or as a part of their general liability insurance policy.
To learn more about the insurance that small businesses should have, get a quote today. It’s important to note that your home-based business insurance is always separate from your homeowners insurance coverage.
What Types of Etsy Liability Insurance Are There?
There are a range of Etsy liability insurance coverages that business owners can get to protect their operation, including:
- General liability insurance, which helps cover your business from claims of bodily injury or property damage.
- Commercial auto insurance to help pay the costs of an auto accident if you or your employees are in a collision.
- Professional liability insurance, which helps cover any errors or omissions in your products or services.
- Workers’ compensation insurance for help providing benefits to employees with a work-related injury or illness.
- Commercial property insurance to help protect your owned or rented building, plus any tools or equipment you use to run your business.
To find the coverage that’s right for you, you can compare quotes from multiple insurance companies. To get started learning more about the different types of insurance you need, get a quote from us today. We’re an insurance company that’s dedicated to providing quality products at affordable prices to small businesses for over 200 years.
What Does Etsy Product Liability Insurance Cover?
Etsy product liability insurance is different than general liability insurance in that it helps protect your business from claims that your product caused bodily injury or property damages.
How Much Does Insurance for Etsy Sellers Cost?
The average cost of a general liability insurance policy is $810 annually.** Etsy sellers can also choose to combine business liability and property insurance into one convenient policy with our Business Owner’s Policy (BOP). On average, this business insurance policy costs $1,687 annually for small businesses.**
Etsy Shop Insurance That Has Your Back
We’re an insurance company that’s been helping small businesses get the insurance coverage they need for over 200 years. You can count on us to help you find the coverages you need for your Etsy shop.
Get a Quote for Etsy Insurance
To see if we have the Etsy business insurance you need, get a quote today.
Last Updated: April 11, 2025
** Costs, premiums, and coverages mentioned are estimates and are not guaranteed. Actual cost, premium, and coverage are determined at the time of quote or issue and are specific to an individual risk. Premiums are based on information provided to The Hartford, including, but not limited to, underwriting and rating criteria. All examples included on this website or in an advertisement are intended for informational purposes only and are not an offer or a guarantee of premium or coverage. Coverage and products described are subject to the terms and conditions found in the policy contract. Any educational information provided about available coverages does not modify the policy language or imply that any claim is covered. Products are not available in all states or for all businesses.