Insurance for Etsy Sellers
Whether you design it, build it, or ship it — we protect your business from production-related risks.
- Secure your shop against product liability claims
- Protect your handmade goods, vintage finds, and creative work
- Let your coverage grow with your sales
What Is Insurance for Etsy Sellers?
Insurance for Etsy sellers is small business liability insurance designed to protect shop owners from claims related to the products they make and sell.
Unlike Amazon, Etsy does not currently require sellers to carry product liability insurance. However, the fine print in their seller protections still leaves you legally responsible if something you sell causes harm. Insurance Canopy offers Etsy insurance for sellers designed to help cover:
Product-related injuries or damages
Legal fees, settlements, and medical costs
Liability across multiple platforms
(if you sell on Etsy and elsewhere)
Every policy is flexible and tailored to your shop, whether you’re selling handmade goods, vintage treasures, or digital products.
Who Needs Etsy Seller Insurance?
You need Etsy seller insurance if you’re selling physical products online, especially if they could be used, worn, or consumed by others. Types of sellers who benefit most include:
Handmade Sellers
Artists & Crafters
Vintage Collectors & Resellers
Indie Brands
Product Manufacturers
Why Do Etsy Sellers Need Insurance?
Etsy doesn’t protect you if a customer makes a claim against your shop. That means you’re fully responsible for any injuries, damages, or lawsuits caused by your products. Without your own product business insurance policy, a single claim could shut down your small business.
Having liability insurance gives you the confidence to keep creating and selling!
✔️ Cover your craft: Insurance helps cover medical bills, legal defense, or settlements if a product harms a customer
✔️ Protect your brand: Lower or eliminate the cost of recalls, product complaints, or lawsuits
✔️ Sell beyond Etsy: Coverage extends to your entire ecommerce business, even if you also sell on Amazon, eBay, Shopify, or at in-person craft fairs
✔️ Peace of mind: Focus on designing, listing, and growing your shop while your insurance has your back
Did you know?
Even if you didn’t manufacture an item (like a vintage resale), you can still be sued as part of the product’s distribution chain.
How Much Does Etsy Insurance for Sellers Cost?
Most Etsy sellers pay an average of $116/month or less for product liability insurance with Insurance Canopy.
Your price depends on factors like:
- Revenue: Higher sales volume = higher risk
- Product type: Riskier categories (candles or skincare) may cost more to insure
- Claims history: Past lawsuits or issues can increase your premium
- Coverage limits: Higher limits provide more protection, but raise your rate
- Sales channels: Multi-platform sellers may need broader coverage
Each policy is crafted to your business, so you only pay for what you need!
What Etsy Seller Insurance Covers
Etsy insurance for sellers from Insurance Canopy includes key coverages to protect your shop from unexpected claims. It includes $2 million in general and product liability coverage and customizable add-ons tailored to your unique needs.
Included
General Liability Insurance
General Liability Insurance is built to cover third-party injuries or property damage caused by your business activities, like a customer tripping at your craft fair booth or accusing your listing photos of copyright infringement.
Products & Completed Operations Insurance
Product Liability Insurance is designed to cover claims of injuries or damages caused by the products you sell, even if you didn’t manufacture them. Common examples include jewelry that causes skin reactions, candles that overheat, or toys missing warning labels.
Recommended Add-ons
Product Recall Insurance
Product Recall Insurance helps cover the costs of contacting buyers, arranging returns, shipping, and safe disposal. It won’t replace lost revenue, but it can keep a recall from draining your savings. A mislabeled candle scent or a skincare product missing an ingredient warning can mean pulling items from your shop.
Cyber Liability Coverage
Cyber Liability Insurance helps you recover if your shop is hacked, your payment info is stolen, or a phishing attack compromises your account. Coverage can include notifying affected customers, paying for credit monitoring, and hiring public relations professionals to protect your shop’s reputation. Your Etsy shop runs online, which means your customer data is always at risk.
Inland Marine Insurance
Inland Marine Insurance protects your products while they’re in transit — whether that’s mailing orders to customers, hauling boxes to a craft fair, or storing extra stock in a rented studio or storage unit. Even if you run your Etsy shop from home, your inventory isn’t always sitting safely on a shelf!
Workers Compensation Coverage
If your Etsy shop grows and you bring in more staff, like hiring someone to pour candles, pack orders, or run your booth at a market, Workers Compensation Insurance helps cover medical bills and lost wages if they get injured on the job. Most states require this coverage if you have employees, even part-time.
Amendment of Coverage Territory (Worldwide Coverage) Endorsement
The Amendment of Coverage Territory endorsement extends your liability protection to claims outside the U.S. Etsy is global, and so are many of your customers. This coverage is perfect if you ship your handmade jewelry to Europe, your art prints to Canada, or your vintage clothing to Australia!
135,000+ Businesses Trust Insurance Canopy
No matter how you craft it, list it, wrap it, or ship it, Insurance Canopy has you back!
- Handcrafted coverage for Etsy sellers
- Simple and easy online application
- Quick, custom quotes within 24 hours
- U.S.-based, licensed support team
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They provided clarity on the importance of insurance for a first time business owner in the cleaning space and provided clear insight next steps and options for coverage.
Evergreen Multiservices
February 2, 2026Extremely user friendly website, super affordable and very little time needed to apply.
Carl Sari
January 31, 2026Excellent company, Great service, the best!!!
Claudina Adams
January 15, 2026 -
Super affordable insurance for a small business like myself super happy to be able to provide this to my customers really helps of landing more gigs
Alex
January 5, 2026Really went the extra mile to find the appropriate coverage for my business.
Daisy B
January 2, 2026Canopy provided escatly what I neede to book the gig, and at a very affordable price.. Thank You!
Andy Anderson
December 22, 2025 -
Easy. Convenient. Trustworthy. Came thru in a moments notice
Eddie K
December 19, 2025Affordable liability insurance for DJ's. Easy to set up and understand. I've been with them for several years and am happy with their service.
Peter Flessas
December 14, 2025So easy to sign up. I hope I never have to use the insurance portion but most hotels require it for corporate gigs
Yuri Gonzalez
December 11, 2025 -
This company is great. They are very helpful and they have great prices for insurance options that cover what you need!
Jacob Serrano
December 6, 2025Great experience, quick and easy to understand with what I needed for my business. Highly recommend!
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October 19, 2025 -
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October 3, 2025Thank you so much
Steve Monreal
July 11, 2025 -
I needed a portable policy as a yoga instructor. I found this company in an online search. Called and got details from them, was quite surprised at how affordable... Read More
Jamie Calaway
July 4, 2025Very easy & quick experience. We got insurance in no time with no hassle. Thank you!
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July 4, 2025I am glad I went with them. I needed a last minute policy to cover an event I was doing and they had exactly what I needed at a... Read More
Deloris Pacheco
June 27, 2025 -
Very easy to renew policy
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June 18, 2025Representative Sarah was very helpful. Walked me through every step and not to mention the price even matched the service! Would recommend to any and everyone.
queenkiam
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June 18, 2025 -
Very user friendly platform. Multiple options. Very good pricing. Needed liability insurance in order to secure a very good paying event for my solo tribute show. Was set up within... Read More
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June 18, 2025Needed DJ insurance for Memorial Day weekend & was squared away within an hour for 2 events! Highly recommend
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June 18, 2025 -
great little company, with fair pricing, for entertainers who need occasional coverage. however, they have long hold times to speak to an agent, and their customer service left a little something... Read More
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June 18, 2025Provides event insurance at a very reasonable price compared to other companies. Easy to purchase and provide proof of insurance.
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May 18, 2025 -
everything is excellent
Radames Martinez
May 18, 2025Extremely affordable event insurance and an easy to work with system and team that will advise you every step of the way!
Ishan Arvin
May 18, 2025Affordable for dance & yoga folk. Thumbs up!
Maia Claire
May 18, 2025
-
They provided clarity on the importance of insurance for a first time business owner in the cleaning space and provided clear insight next steps and options for coverage.
Evergreen Multiservices
February 2, 2026 -
Extremely user friendly website, super affordable and very little time needed to apply.
Carl Sari
January 31, 2026 -
Excellent company, Great service, the best!!!
Claudina Adams
January 15, 2026 -
Super affordable insurance for a small business like myself super happy to be able to provide this to my customers really helps of landing more gigs
Alex
January 5, 2026 -
Really went the extra mile to find the appropriate coverage for my business.
Daisy B
January 2, 2026 -
Canopy provided escatly what I neede to book the gig, and at a very affordable price.. Thank You!
Andy Anderson
December 22, 2025 -
Easy. Convenient. Trustworthy. Came thru in a moments notice
Eddie K
December 19, 2025 -
Affordable liability insurance for DJ's. Easy to set up and understand. I've been with them for several years and am happy with their service.
Peter Flessas
December 14, 2025 -
So easy to sign up. I hope I never have to use the insurance portion but most hotels require it for corporate gigs
Yuri Gonzalez
December 11, 2025 -
This company is great. They are very helpful and they have great prices for insurance options that cover what you need!
Jacob Serrano
December 6, 2025
Questions About Etsy Seller Insurance
No, Etsy does not have insurance for sellers. Etsy does offer the Etsy Seller Protection policy, but this mainly covers disputes like undelivered items or unauthorized transactions.
The seller protections explicitly state they do not cover you if a product you sell causes injury, property damage, or other liability issues. That’s where Etsy seller insurance steps in to protect you, your shop, and your livelihood.
The most important insurance you need to sell on Etsy is product liability insurance! It’s designed to protect you if a customer is hurt or suffers damage from something you sold (like a candle, lotion, or handmade jewelry).
Most sellers bundle this with general liability insurance, which also protects you at craft fairs or in-person events. Depending on your shop, you may also want:
- Cyber liability coverage (for online risks)
- Inland marine coverage (for inventory and supplies)
- Workers comp (if you hire help)
Etsy Seller Protection is free, but it’s limited. It only helps with things like non-delivery claims or certain payment disputes. It does not pay for lawsuits, medical bills, or property damage caused by your products.
For that kind of coverage, you’ll need a separate Etsy seller insurance policy, which typically starts around $116/month through Insurance Canopy.
No, you don’t need insurance to sell handmade crafts online, but it is highly recommended. Even if your craft is safe and simple, accidents can happen to anyone, such as:
- A customer has an allergic reaction to a lotion
- A necklace could break and cause injury
- A candle could spark and cause fire damage
Without insurance, you’d be responsible for covering the costs yourself. With insurance, you can keep creating and selling with confidence.
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