Do I Need Insurance to Sell Crafts?

Importance of Insurance for Craft Sellers

Whether you make your living from your handicraft or view it as a passion project, you need insurance cover if you sell your work. If you sell at craft fairs, you will need to purchase insurance as the risk of injury to third parties is heightened.

Business Licensing and Artisan Platforms

You may not need a business license if you’re just selling a few items at a local craft fair. But if you’re selling online or at multiple locations, you’ll probably need one. Artisans from over 80 countries are selling their craft on Amazon, and Etsy has seen a surge in sales during the COVID-19 pandemic.

Tax Obligations for Reselling

If you often seek bargains then resell for a profit, you’re likely considered as ‘trading’ and will have to pay tax on the profits via a self-assessment tax return.

Setting Up Your Etsy Shop

Once signed up to sell on Etsy, take steps to complete shop setup and prepare for selling. Consider shop management like any online business. Employers must carry insurance, including worker’s compensation coverage.

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