Crafters classify as any person who makes and sells their own handcrafted goods. For the most part, crafting is a relatively low-risk business, which means that purchasing business insurance for crafters and artisans is simple, easy, and affordable.
Despite this fact, many still operate without basic handmade business insurance for crafters and craft shops. This is not a smart move, as crafters are just as likely as a large retailer to have a claim made against them.
A lot of things can go wrong for a crafter. For one, someone might visit your booth at a street fair and sustain injuries while testing a product. It’s also not impossible for an item you created from the workshop to cause injuries sometime after it has been purchased.
In this article, we’re going to explain why crafters, like you, must hold a basic craft business insurance policy and provide you with some craft insurance quotes from the top providers. Then, we’ll break down the various types of small craft business insurance available. With that said, it’s time to get your craft business safe and covered!
So, you may be thinking, “I just sell arts and crafts, then why would I possibly need insurance?”. As we mentioned, crafting is a low-risk industry. Accidents choose no one, and it's only a matter of time before you find yourself in a problematic situation.
For example, let’s just say that you have a small shop where your works are displayed. Unfortunately, while your customers are in the shop, they carelessly bump into a tabletop and knock some sharp pointed objects that stab their foot.
Without small craft business insurance, you will have to pay for the medical bills of the customers injured using your own money. And if they failed to go to work because of their injury, you might even be required to pay for lost wages!
Of course, the above situation is just one of the many incidents that could occur. These days, it’s not uncommon for customers to sue small businesses for everything from a simple papercut to a large piece of art falling and hurting them. A claim might even be filed even though you did nothing wrong! That's why get a comprehensive crafter insurance policy because it's the best way to protect yourself and your business from losses.
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Craft liability insurance is the most common type of coverage that is required for all arts and crafts businesses. Liability insurance for crafter protects against third-party claims filed due to personal injuries, property damage, and economic or financial loss. It comes in many types namely:
General liability insurance
Professional liability insurance
Product liability insurance
General liability insurance, also included in gift shop insurance bundles, is the most basic protection insurance companies offer for crafters like you. You’ll get $1 million - $2 million coverage from general liability insurance. The coverage of general liability insurance includes the following:
|Third-Party Personal Injuries||Third-Party Property Damage||Legal Expenses|
|You were applying paint and varnish on a finished product. Some of the paint and varnish were spilled on the floor. Someone who was about to watch you work stepped on spilled chemicals and slipped, sustaining minor fractures on the hips. If this person files a claim, general liability insurance will take care of medical expenses||A client asked you to put patterns on his mahogany flooring. While working, the surface you’re working on developed a crack. If the client demands you reimburse the value of the damaged property. General liability insurance will provide the reimbursement on your behalf||A person you injured or had property damaged might take legal action against you. In this case, general liability insurance will pay for attorney fees, compensatory payments court orders, and other legal costs|
General liability insurance is different from other liability policies. This is a very comprehensive policy that covers most exposures accompanying your business’s interaction with customers, vendors, and other third parties. The scope of general liability insurance is very broad because it comes with add-ons, mainly:
|Advertising Injury Coverage||Products and Completed Operations||Rented Premises Liability Coverage|
|You might bad-mouth a business, customer, or another caterer in an interview, blog, or ad. You could also copy another person’s work, trademark, slogan, logo, or advertisement. These might result in a claim for advertising or reputational harm. Advertising injury coverage will help you with this by taking care of attorney fees, compensatory payments ordered by the court, and other legal costs||Your completed product or service might have caused injuries or property damage to previous customers. If past clients file a claim against your business, products and completed operations coverage will take care of attorney fees, compensatory payments, and other legal costs||Most crafters like you rent a space to do business. Know that if that commercial space becomes damaged due to fire, you have to reimburse the owner. Rented premises liability coverage will shoulder the reimbursement on your behalf|
You will commit oversights and this might result in economic or financial loss for a client. For example, a business might contract you to make souvenirs and you fail to meet the quota. In this situation, the client will lose some money and file a claim against you.
And so, get professional liability insurance. This type of handmade craft insurance usually works in tandem with general liability insurance to give a very comprehensive protection against claims from clients. Professional liability insurance will handle attorney fees, compensatory payments, and other legal costs when a customer files a claim for:
Violation of good faith
Violation of fair dealing
Breach of confidentiality
Another liability insurance for crafters is product liability insurance. This is designed to protect you and your business from claims when a defective product injured another person or caused property damage. For example, without noticing it, you might have used toxic paint on a toy you made for a kid. The kid then puts the toy in his mouth and gets sick. In this case, the parents can sue you for damages and demand payment for medical bills.
Commercial property insurance is useful if you’re owning an arts and crafts shop where products are made and supplies and sold. There’s a lot of investment when owning a commercial space. That’s why you need to insure that using commercial property insurance. Commercial property insurance primarily covers:
|Building Destruction||Building Damage|
|Commercial property insurance provides reimbursements equal to the value of the craft shop that fire, extreme weather, and other related events destroyed. Note that destruction due to floods and earthquakes is excluded||If your craft shop becomes damaged due to fire, theft, vandalism, extreme weather, and other covered perils, commercial property insurance will provide reimbursements equal to the value of the damaged structures. Damage, earthquakes and floods caused, is excluded|
Commercial property insurance for artists and crafters doesn’t only take care of your building. It will also cover the stocks, contents, and equipment within the business premises. Such additional protection is provided by the following inclusions in commercial property insurance:
|Stocks and Contents Coverage||Business Equipment and Tools Coverage|
|Inside your craft shop are computers, CCTV cameras, furniture, and other valuables not considered equipment and tools. Stocks and contents coverage will reimburse your losses if these become damaged or lost due to fire, theft vandalism, and other covered perils||Inside your craft shop are specialized machines and numerous toolsets. When those get damaged due to fire, theft, vandalism, and other covered perils, business equipment and tools coverage will reimburse losses.|
You’ll know how much money you can get from commercial property insurance if you understand how it reimburses your losses. Commercial property insurance provides money based on the actual cash value or replacement cost of the scheduled commercial property.
|Actual Cash Value||Replacement Cost|
|Commercial property insurance providing reimbursements through actual cash value will give you money based on the depreciated value of the scheduled property. For example, if your craft shop’s $500,000 building depreciated 2% upon getting destroyed, you’ll only get $100,000 insurance money. You will not recover investments in full. However, the advantage is that this option is cheaper in terms of premiums||In a replacement cost reimbursement, commercial property insurance will give you money without taking the depreciation of the scheduled property into account. For example, if your craft shop’s $500,000 building got destroyed 5 years later, you’ll receive the same amount of money even if the building has depreciated considerably|
If you sell your arts and crafts at festivals, carnivals, or fairs, then you’ll most likely need to purchase craft fair insurance. Insurance for craft fair typically includes general liability coverage designed to cover your business from customers who get injured around your vending area or who want reimbursement after finding that your product has defects.
Since festivals, carnivals, and fairs take place in a limited time, craft fair vendor insurance can be purchased as a short-term policy lasting for only one day or one week.
One day craft fair insurance policies are perfect for selling at carnivals, festivals, and fairs because these take place for only a limited time. Sometimes referred to as on-demand insurance coverage or temporary craft insurance, these policies are more expensive than the standard crafters insurance policies that last a whole year. Price starts at $50 - $100 then scales up depending on how long you want coverage to take effect. Inclusions are general liability insurance with rented premises liability coverage and product liability insurance.
Insurance companies serving crafters underwrite one day public liability insurance. One day public liability insurance is a stand-alone policy that provides protection against personal injury claims or property damage claims for 1 hour, 3 hours, 6 hours, 12 hours, or 24 hours. You can get $500,000 - $2 million coverage from this policy. Examples of insurance companies that provide one day public liability insurance for crafters are Thimble and Act Insurance.
Craft vendors who sell their products at local farmers markets, flea markets, or similar locations will need craft vendor insurance. It includes professional liability insurance and general liability insurance for craft vendors that are designed to protect you from claims arising from products, property damage, personal injuries, or economic loss. We recommend you to add rented premises liability coverage and tools and equipment coverage in your primary craft vendor liability insurance. It’s not bad to get product liability insurance too.
If you’re doing a small arts and crafts show, performance, or pop-up event, then you’ll likely be searching for craft show insurance. This is available as a short-term policy. Common inclusions in this tailored insurance are general liability insurance with products and completed operations coverage as well as professional liability insurance.
As the saying goes, “where there’s smoke, there’s fire.” So if you make your own candles or wax melts, you definitely need to maintain candle craft insurance or candle business insurance. This can protect you from claims that your candles caused a larger fire or weren’t designed to adequately protect the flame. Regardless of whether it was your fault or not, your business can still be held liable.
If you accidentally make a defective wax melt that catches fire or causes a burn on somebody, you could be held liable. Handcrafted insurance for wax melts and candles can protect your business against these claims and the financial liability associated with them. This goes for soap makers insurance as well.
So, given the importance of insuring your small business, you’re probably wondering, “How much does craft insurance cost?”
Purchasing an insurance policy for your small crafting business is quite affordable. Although claims and accidents can happen, they aren’t quite as common compared to other industries such as electrical work or food truck. Therefore, the lower risk associated with the industry translates into more affordable craft insurance premiums!
In general, the average craft insurance cost is around $47 per month or $564 per year for a $1 million general liability insurance policy for crafters.
To get a firmer grip on the cost of tailored craft insurance, we’ve made a table for you that shows the pricing of the best craft insurance companies.
|Cost per Month||Cost per Year||Best for|
|CoverWallet||$43||$516||Crafters insurance online quotes comparison|
|Thimble||$46.78||$561.36||Jewelry makers, candle makers, soap makers, tailors, and leather workers|
|Direct Line||$55||$660||Small to mid-sized arts and crafts businesses and vendors|
As you can see, craft cover insurance typically costs less than most people’s monthly cell phone bill, so there’s no reason why you can’t find an affordable craft insurance policy. Keep in mind that these rates are just an average calculated from comparing rates from small craft insurance providers around.
Your own rates may differ and could be slightly cheaper or more expensive. Your individual rate will differ based on factors such as:
The city you do business in
Whether you’re mobile, home-based, or have a retail location
The type of arts and crafts you do
You shouldn’t have any problem finding cheap craft insurance. The best way to get a good rate on your insurance policy is to compare quotes from different insurance providers.
Finally, we recommend you do craft insurance comparison by getting the quotes of insurance companies offering coverage for crafters and artists. We have an online tool that will help you with that. Just click on the “Get Quotes” button on this page to start.
Get all the best quotes from leading providers in a click of a button!
Based on our research and overall satisfaction ratings from small craft business owners, we’ve found that CoverWallet is the best craft insurance agency for people looking for handmade goods insurance. Below, we’ve included a brief review of the company along with some notable pros and cons mentioned by their policyholders. Additionally, we’ve also included the average monthly premium cost that you can expect to pay for craftmarket insurance policies offering a $1 million general liability coverage.
Cancel a policy anytime
Purchase insurance online
No rambling with insurance agents to get insured
Easy policy management with the MyCoverWallet app or website
Not an insurance company but an insurance broker
CoverWallet isn’t a craft insurance company but an insurance broker. But it managed to enter our list of the best craft insurance companies because it offers a lot of insurance policies from its partners ranging from property and casualty insurance, product insurance for crafters, and more. You have four coverage options with CoverWallet - general liability with products and completed operations coverage, general liability and commercial property insurance, business owner’s policy, and a custom plan.
Best for: Crafters insurance online quotes comparison
Average cost: $43 per month
Our rating: 10/10
Online quotes available
Only available in selected states
Thimble insurance for crafters best fits jewel makers, candle makers, soap makers, tailors, and leather workers. The company's policy comprises general liability, equipment insurance, and commercial property insurance. With that said, Thimble's insurance for crafters is tailored to the needs of crafters who are seeing growth for their business.
Best for: Jewelry makers, candle makers, soap makers, tailors, and leather workers
Average cost: $46.78 per month
Our rating: 9/10
Easy online application process
Online certificate of insurance
Stops providing coverage the moment your business becomes big
NEXT provides insurance for craft businesses of all sizes. Therefore, it's certain that the company will insure your craft business as well. NEXT is great for its affordable rates and easy online insurance application process. Aside from this, there's also a certificate of insurance available that's very useful if someone hires you to make arts and crafts. Discounts are also part of the perks that NEXT gives and you can avail them by bundling your insurance policies.
Best for: Starting crafters
Average cost: $52.45 per month
Our rating: 8/10
Excellent reputation for customer service
Provides liability coverage for small, mid-sized, or large craft companies
Affordable rates for handmade product insurance
Temporary and full-term handcrafters insurance available
As they’re based in the U.K., there may be some difficulties with the time difference when calling to make a claim
Compared to other large insurance companies like Geico or State Farm, Direct Line is relatively new to the insurance scene and has only been providing business insurance since 2007. Since then, however, the UK-based insurance group has made an impact on its customers and has amassed just under a million customers.
Direct Line provides excellent handmade product insurance policies. Whether you need coverage for an upcoming fair event or you want coverage for your larger arts and crafts studio, you’ll be able to purchase temporary and full-term liability, commercial property, and equipment insurance products to protect you and your business against different exposures.
Best for: Small to mid-sized arts and crafts businesses and vendors
Average cost: $55 per month
Our rating: 7/10
Lonnie Bell Insuranker
Policy Type: Business Insurance
Company name: Employers Insurance
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!