Do I Need Insurance to Sell Handmade Goods? Insurance for Handmade Craft Sellers

  • Do I need insurance to sell handmade crafts? You are not legally required to purchase insurance before selling handmade crafts on Etsy. However, it is generally a good idea to consider purchasing online retailer insurance. Although not compulsory, this cover could safeguard your business from financial ruin should a claim be brought against you.

  • What types of insurance should Etsy sellers consider? There are several policies Etsy sellers may want to consider: General Liability insurance covers bodily injury and property damage claims. Product Liability Insurance covers legal costs associated with claims of injury or damage caused by your product. Business Property Insurance protects equipment and inventory.

  • How can I legally sell my products? Contact your city to apply for a license. Is it illegal to sell handmade stuff? You likely need a business license to legally sell crafts. Many handmade businesses operate without proper registration. That doesn’t mean it’s legal. Know the law to sell items legally. Get a seller’s permit and wholesaler’s license. Ensure no trademark issues. Follow your jurisdiction’s requirements.
  • What is the best platform to sell online? Etsy connects artisans and buyers. Other options include Amazon Handmade, Dawanda, and Spoonflower. Consider niche sites too.

Understanding your niche and target audience is crucial for success in selling handmade items. Creative products are popular, and taking small steps in the right direction can lead to a successful business venture.

While Etsy doesn’t require sellers to have business insurance, being prepared and protected is essential. Recommended policies include general liability insurance, which covers claims of bodily injury, property damage, and personal injury. This coverage can protect against potential injury lawsuits, especially if you have studio visits or attend craft fairs.

Consider expanding your product range and selling larger items, as urban buyers have a growing interest in rural crafts. Transportation costs should be taken into account when selling globally. E-commerce platforms can facilitate faster sales, and building a team can help manage the business effectively.

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