Etsy Seller and Shop Insurance: Cost & Quotes From $20/mo

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Running an Etsy shop can be a rewarding online business. Still, it’s important to remember that accidents and unexpected events can happen anytime even when you’re running this home-based business. That’s why it’s crucial for Etsy sellers to consider getting insurance for their shops. Etsy insurance can cover various incidents and accidents while running a business. 

With Etsy business insurance, sellers can protect themselves from costly legal fees, medical bills, and property damage repair costs, among other expenses. This insurance can also help cover product recalls and data breach costs.

Read further to know what policies are included in Etsy shop insurance. You will also know the cost of premiums and the best companies. 

General Liability Insurance for Etsy Sellers and Shops

CoverWallet  NEXT (Best) Thimble  Hiscox The Hartford
Per occurrence limit  $1,000,000 $1,000,000 $1,000,000/$2,000,000 $300,000/$1,000,000 $1,000,000/$2,000,000
Aggregate limit  $2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $300,000/$2,000,000 $1,000,000/$2,000,000
Products and completed operations aggregate limit  $2,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Advertising injury coverage aggregate limit  $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Tenant’s legal liability coverage limit  $100,000 $100,000 $5,000 $100,000 $1,000,000
Waiver of subrogation included? Yes No Included Can be included No
Hired/non-owned auto liability coverage included? Yes No Excluded Can be included Can be included
Equipment breakdown floater included? No  Yes Yes Can be included Can be included


General liability insurance is an insurance policy that covers Etsy sellers and shops against claims made by third parties for bodily injury, property damage, and advertising injury. It is designed to protect the Etsy seller or shop in case of an accident or injury caused by their products, services, or operations. 


Coverage Limits of General Liability Insurance for Etsy Sellers and Shops

The coverage limits for this Etsy liability insurance policy can range from $1 million to $2 million.

Specific Situations Where This Insurance Can Help

  • Bodily injury caused by a product sold by the Etsy shop

  • Property damage caused by a product sold by the Etsy shop

  • Slip and fall accidents occurring on the Etsy shop’s premises

  • Advertising injury, such as copyright infringement, caused by the Etsy shop

Add-Ons to General Liability Insurance for Etsy Sellers and Shops

  • HNOA coverage–General liability insurance for selling on Etsy can have hired/non-owned auto liability coverage. This takes care of claims after a commercial auto you hired or borrowed causes an accident

  • Terrorism coverage–This can be added to general liability insurance so that you enjoy reimbursement for financial losses in case your business property gets damaged or lost due to terrorism and sabotage

Can General Liability Insurance for Etsy Sellers and Shops Cover Intellectual Property Disputes?

Yes, general liability insurance for Etsy sellers and shops can cover intellectual property disputes, such as claims of copyright infringement or trademark violations. However, it is vital to check the specific terms and conditions of the policy to ensure that such coverage is included.


Professional Indemnity Insurance for Etsy Sellers and Shops

CoverWallet  NEXT Thimble (Best) Hiscox The Hartford
Per occurrence limit  $1,000,000 $1,000,000 $1,000,000/$2,000,000 $1,000,000 $1,000,000
Aggregate limit  $2,000,000 $2,000,000 $1,000,000/$2,000,000 $1,000,000 $2,000,000
Name additional insureds? Yes Yes Yes Yes Yes
Waiver of subrogation included? Yes No Yes Can be included No


Professional indemnity insurance is an insurance policy that covers legal costs and damages arising from claims of professional negligence or mistakes made by Etsy sellers or shops while conducting their business activities. It protects against claims made by clients or third parties who have suffered financial loss or damage due to the Etsy seller or shop’s actions.


Coverage Limits of Professional Indemnity Insurance for Etsy Sellers and Shops

The coverage limits usually range from $100,000 to $1 million.


Specific Situations Where This Insurance Can Help

  • Breach of confidentiality or privacy

  • Providing incorrect or misleading advice to a client

  • Failure to deliver a product or service as promised

  • Misrepresentation of a product or service

  • Negligence or errors in professional services provided

Do All Etsy Sellers and Shops Need Professional Indemnity Insurance?

It depends on the nature of the business and the risks involved. Professional indemnity insurance is highly recommended if the seller or shop provides professional services or advice, such as consulting or design services. However, the business primarily sells physical products. In that case, having this type of insurance may not be necessary.


Etsy Product Liability Insurance

Etsy product liability insurance is a policy designed to protect Etsy sellers from claims arising from their products’ defects, malfunctions, or failure to perform as intended.


Coverage Limits of Etsy Product Liability Insurance

Product liability insurance Etsy has a $1 million per occurrence and $2 million aggregate limit. 


Specific Situations Where This Insurance Can Help

  • A customer is injured by a defective product sold by the Etsy seller

  • A product sold by the Etsy seller fails to perform as intended, causing financial losses to a customer

What Types of Products Are Typically Covered under Etsy Product Liability Insurance?

Etsy product liability insurance can cover many products, including handmade or vintage items, and craft supplies However, depending on the insurer’s underwriting guidelines, some products may be excluded or require additional coverage. Sellers should review their policies carefully to understand what products are covered and excluded.

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Commercial Property Insurance for Etsy Sellers and Shops

CoverWallet NEXT (Best) Thimble The Hartford Hiscox
Building coverage limit (minimum) $50,000 $330,000 $25,000/$500,000 $60,000 $25,000
Contents coverage limit (minimum) $50,000 $35,000 $25,000/$500,000 $60,000 $15,000
Outdoor signs Excluded $2,500 Excluded Excluded Included
Accounts receivable  Excluded Excluded $5,000/$10,000 Excluded Included
Money and securities Excluded $2,500 $1,000 Excluded Included
Lock and keys  Excluded $2,500 Excluded Excluded Included
Business interruption floater Excluded Included Included Excluded Included
Equipment breakdown floater Excluded Included Excluded Excluded Included
Inland marine insurance floater Excluded Excluded $10,000 Excluded Excluded
Employee dishonesty floater Excluded $5,000 $2,500 Excluded Excluded


A commercial property policy included in your Etsy store insurance covers the physical assets from damage or loss due to natural disasters, accidents, theft, or vandalism. It covers your business’s building, inventory, equipment, and furniture.


Coverage Limits of Commercial Property Insurance for Etsy Sellers and Shops

The limits usually range from $10,000 to $2,000,000 for the building and $25,000-$50,000 for the contents. 


Specific Situations Where This Insurance Can Help

  • Fire or smoke damage to the building or inventory

  • Damage or loss due to natural disasters such as floods, earthquakes, and hurricanes

  • Theft or vandalism of inventory or equipment

  • Accidental damage to property due to an employee’s negligence

  • Business interruption due to a covered loss, such as fire or flood, resulting in lost income for the business owner

Add-Ons to Commercial Property Insurance for Etsy Sellers and Shops

  • Accounts receivable insurance–If you rely on invoices and accounts receivable to keep your business running, accounts receivable insurance can help protect you if a customer defaults on a payment or goes bankrupt

  • Flood insurance–Commercial property insurance doesn’t cover property damage caused by floods. You need a flood endorsement to cover such peril

Can a Home-Based Etsy Seller Get Commercial Property Insurance?

A home-based Etsy seller can get commercial property insurance if they have a separate commercial space or designated area in their home for their business operations. However, coverage limits and eligibility may vary depending on the insurance provider and policy. It’s best to check with the insurance provider to determine the coverage options for a home-based business.




Business Owner’s Policy for Etsy Sellers and Shops

CoverWallet NEXT (Best) Thimble  The Hartford Hiscox
General liability aggregate limit  $2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $300,000/$2,000,000
Commercial property coverage limit  $50,000 $330,000 $25,000/$500,000 $75,000 $75,000
Optional policies can be added? Yes Yes Yes Yes Yes
Name additional insureds for free? Yes Yes Yes Yes Yes
BOP discount? Yes Yes Yes Yes Yes


A Business owner’s policy (BOP) is a comprehensive Etsy seller insurance package that combines general liability and commercial property insurance. This policy can grant protection against liability claims and commercial property damage or loss.


Coverage Limits of Business Owner’s Policy for Etsy Sellers and Shops

Most policies provide up to $1 million in coverage for general liability claims and up to $100,000 in coverage for business property damage.


Specific Situations Where This Insurance Can Help

  • A customer slipping and falling in your physical shop

  • Client or buyer getting injured while using a product you sold on Etsy

  • Damage to your inventory or equipment due to fire, theft, or other covered perils

  • Copyright infringement claims related to your advertising or marketing materials

Add-Ons to Business Owner’s Policy for Etsy Sellers and Shops

  • Customer property coverage–This can be used to reimburse the customer if his or her property got damaged while under your care, custody, and control

  • Crime insurance–You can use this to recover financial losses in case your business becomes a victim of theft, social engineering, fraud, forgery, and other related acts

What Types of Businesses on Etsy Are Eligible for a BOP?

Eligible businesses may include jewelry makers, clothing designers, artists, and other creative entrepreneurs. However, eligibility requirements can vary depending on the insurer and the specific policy.


Tools and Equipment Insurance for Etsy Sellers and Shops

NEXT  Thimble Hiscox The Hartford
Aggregate limit $3,000/$10,000 $2,500/$5,000 $15,000/$25,000 $5,000-$10,000
Covers hired and borrowed equipment? $3,000/$10,000 $2,500/$5,000 No Yes
Miscellaneous equipment also covered? $5,000/$10,000 No Yes Yes
Offered as an endorsement to general liability insurance? Yes Yes Yes Yes
Deductible $500 $500 $0 $0


Tools and equipment insurance is a policy that covers the tools and equipment used by Etsy sellers and shops. This policy protects the seller against extra expenses due to losing or damaging their computers, cameras, tablets, and other business equipment due to theft, fire, or other covered events.


Coverage Limits of Tools and Equipment Insurance for Etsy Sellers and Shops

Tools and equipment insurance covers moveable items valued at under $ 10,000 depending on the size and value of the business.


Specific Situations Where This Insurance Can Help

  • Loss or damage of tools and equipment due to theft or burglary

  • Damage to tools and equipment caused by fire or natural disasters

  • Accidents that cause damage to tools and equipment

Add-Ons to Tools and Equipment Insurance for Etsy Sellers and Shops

  • Extra expense coverage–If you need to rent temporary equipment or pay for additional expenses while your damaged or stolen equipment is being repaired or replaced, extra expense coverage can help cover those costs

What Types of Tools and Equipment Can Be Covered by This Insurance?

Tools and equipment insurance can cover a wide range of tools and equipment used by Etsy sellers and shops, including but not limited to machinery, computer equipment, hand tools, and specialized equipment used in producing goods.

Commercial Auto Insurance for Etsy Sellers and Shops

Commercial auto insurance is a policy that covers vehicles used for business purposes, including vehicles used by Etsy sellers and shops for deliveries or transportation of goods. This policy protects against damages or injuries that may occur in the event of an accident.


Coverage Limits of Commercial Auto Insurance for Etsy Sellers and Shops

The coverage limits for commercial auto insurance depend on the policy chosen by the seller or shop. The limits usually range from $25,000 to $1 million.


Add-Ons to Commercial Auto Insurance for Etsy Sellers and Shops

  • Roadside assistance–This coverage can help if your vehicle breaks down or you are stranded on the side of the road

Does the Law Require Commercial Auto Insurance for Etsy Sellers and Shops?

Commercial auto insurance is not required by law for Etsy sellers and shops. Still, protecting against potential financial losses in the event of an accident or damage to the vehicle used for business is highly recommended.


Cargo Insurance for Etsy Sellers and Shops

As an Etsy seller, shipping your products can be risky at times. This makes it essential for you to have this type of Etsy shipping insurance. Cargo insurance policy can compensate your financial losses if items get lost or damaged while in transit due to fire, theft, vandalism, lightning, and other covered perils. 


Coverage Limits of Cargo Insurance for Etsy Sellers and Shops

This policy in Etsy package insurance offers coverage limits of up to $5,000. However, the coverage limit varies based on the value of the item being shipped.


How Do I File a Claim for a Damaged or Lost Item?

You must furnish evidence of the damage, loss, or theft, such as photographs of the damaged item or proof of the item’s worth.


Excess Liability Insurance for Etsy Sellers and Shops

This insurance policy provides additional liability coverage beyond the limits of the underlying liability policy. It offers additional protection to the business in case of a large claim that exceeds the primary policy’s limits. This policy is especially relevant for Etsy sellers and shops who may face legal claims from customers, employees, or other third parties due to their business operations.


Coverage Limits of Excess Liability Insurance for Etsy Sellers and Shops

Generally, the policy offers an additional $1-2 million in coverage, which can be added to the primary liability policy’s limits.


Who Needs Excess Liability Insurance for Their Etsy Business?

Excess liability insurance is recommended for Etsy sellers and shops with higher risk exposures and who want additional protection beyond their primary liability insurance policy. It can be significant for those selling products that could cause major harm or damage to customers or third parties, such as handmade goods or products made with chemicals or electronics.


Workers Compensation Insurance for Etsy Sellers and Shops

As an Etsy seller or shop owner, you must provide your employees with workers’ compensation insurance. This policy covers employees who experience work-related injuries or illnesses. The coverage provided can be used to pay medical expenses, lost wages, rehabilitation costs, and death benefits for employees and their families. 


Coverage Limits of Workers Compensation Insurance for Etsy Sellers and Shops

Unlike other types of insurance, workers comp coverage has no ceiling or limit on the policy amount.


Specific Situations Where This Insurance Can Help

  • Work-related injuries, such as back injuries, repetitive stress injuries, and slip-and-fall accidents

  • Illnesses caused by exposure to hazardous materials or work-related conditions, such as respiratory problems or occupational diseases

  • Injuries sustained during work-related travel or while conducting business off-site

What is the Process for Filing a Workers’ Compensation Claim?

To file a workers’ compensation claim, an injured employee should notify their employer immediately after the injury occurs. The employer will then provide the necessary paperwork to the employee to file a claim with their workers’ compensation insurance carrier. The carrier will review the claim and may require additional information or medical exams before deciding on coverage.

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Etsy Insurance Cost

Cost per Month Cost per Year Deductible
General liability insurance $33 $396 $0-$500
Professional liability insurance $35 $420 $500-$1,000
Excess liability insurance $39 $468 $500-$1,000
Commercial property insurance $40 $480 $1,000-$2,000
Business owner’s policy $73 $876 $1,500
Tools and equipment insurance $37 $444 $500-$1,000
Cargo insurance Depends on the value of the items insured Depends on the value of the items insured $500-$1,000
Commercial auto insurance $45 $540 $500-$1,000
Workers compensation insurance $81 $972 $2,500-$5,000


The average Etsy insurance cost is $33 per month or $396 per year for a $1 million general liability insurance. Factors that affect the cost of premiums are claims history, business history, revenues, policy limits, deductibles, and location. Here’s a table showing the cost of a $1 million general liability insurance from the best companies:

Cost per Month Cost per Year Best for
NEXT $25 $300 Best overall; Fastest general liability insurance for Etsy businesses
The Hartford $29 $348 Comparing Etsy seller and shop insurance quotes online
CoverWallet $31 $372 Workers compensation insurance for Etsy businesses
Tivly $34 $408 Comparing Etsy business insurance quotes over the phone
Thimble $38 $456 Short-term general liability insurance for Etsy sellers and shops
Hiscox $39 $468 Businesses looking for a reliable insurance provider

Compare Cheap Etsy Seller & Shop Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Best Etsy Insurance Companies

Etsy sellers require insurance to protect their business, products, and reputation. To find the best insurance policy for your Etsy shop, it’s essential to know the top companies that offer coverage. Here are the top six insurance companies for Etsy sellers:

NEXT Etsy Insurance

Pros

  • Best overall

  • Issues an online proof of insurance instantly

  • Fastest general liability insurance for Etsy businesses

  • Great customer service and reputation

  • Excellent rates

  • Outstanding value for money

  • Get a 10% discount if you buy two or more policies 

Cons

  • Couldn’t find any

NEXT is a US-based company that covers small businesses. You can purchase insurance policies individually or in packages suited to specific industries.

Best for: Best overall; Fastest general liability insurance for Etsy businesses

Average cost: $25 per month

Our rating: 10/10


CoverWallet Etsy Insurance

Pros

  • They provide personalized quotes based on your business’s needs and risk factors.

  • You can manage your policies online and make changes as needed

  • Compare quotes with a click of a button

  • HNOA coverage automatically included in general liability insurance

Cons

  • Some customers have reported difficulty with the claims process

CoverWallet is an online insurance marketplace that helps business owners compare and purchase insurance policies online. Policies you can get are general liability, commercial property, business owner’s policy, and others. Moreover, you can cancel or view the limits of purchased policies through CoverWallet’s online dashboard. 

Best for: Comparing Etsy seller and shop insurance quotes online

Average cost: $29 per month 

Our rating: 10/10


The Hartford Etsy Insurance

Pros

  • They have a strong reputation and financial stability

  • Offers a wide range of insurance products

  • Provides discounted rates for people who are over 50 years of age.

  • The rate remains fixed for 12 months

Cons

  • They may require more documentation and information to process claims

  • Younger drivers are charged high rates

The Hartford offers businesses a range of insurance products, including liability, property, and workers’ compensation insurance. They have been in business for over 200 years and have an A+ rating from A.M. Best.

Best for: Workers compensation insurance for Etsy businesses

Average cost: $31 per month 

Our rating: 10/10


Tivly Etsy Insurance

Pros

  • They offer affordable pricing options and flexible payment plans

  • Provide an online system that is easy to navigate for managing policies and claims

  • It enhances the effectiveness of agents and brokers

Cons

  • No online quotes

Tivly specializes in providing insurance coverage to small businesses with diverse options and customized policies to cater to the unique requirements of various industries. Call now to compare quotes over the phone. 

Best for: Comparing Etsy business insurance quotes over the phone

Average cost: $34 per month 

Our rating: 9/10


Thimble Etsy Insurance

Pros

  • Their policies can be purchased on demand, making them a flexible option for small businesses

  • General liability insurance is available as a short-term coverage

  • The customer support team at Thimble is prompt and supportive, offering assistance through phone, email, and chat

Cons

  • You can’t reach customer service by calling 

Thimble is an on-demand insurance provider specializing in coverage for small businesses and freelancers. Your general liability and BOP from this company can be customized with numerous add-ons. Moreover, you can purchase general liability insurance as a short-term coverage. 

Best for: Short-term general liability insurance for Etsy sellers and shops

Average cost: $38 per month 

Our rating: 9/10


Hiscox Etsy Insurance 

Pros

  • Their policies are underwritten by Hiscox Insurance Company, which has an A rating from A.M. Best

  • Strong financial stability

  • Offers risk management resources to aid customers in decreasing their risk exposure and preventing losses

Cons

  • Online quoting not available all the time due to periodic site maintenance 

Hiscox is an insurance company that operates worldwide and provides insurance coverage for small businesses. They adjust policies to suit the unique requirements of various industries.

Best for: Businesses looking for a reliable insurance provider

Average cost: $39 per month 

Our rating: 8/10

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