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.
| 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.
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
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
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.
| 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.
The coverage limits usually range from $100,000 to $1 million.
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
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 is a policy designed to protect Etsy sellers from claims arising from their products' defects, malfunctions, or failure to perform as intended.
Product liability insurance Etsy has a $1 million per occurrence and $2 million aggregate limit.
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
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.
Get all the best quotes from leading providers in a click of a button!
| 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.
The limits usually range from $10,000 to $2,000,000 for the building and $25,000-$50,000 for the contents.
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
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
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.
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| 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.
Most policies provide up to $1 million in coverage for general liability claims and up to $100,000 in coverage for business property damage.
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
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
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.
| 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.
Tools and equipment insurance covers moveable items valued at under $ 10,000 depending on the size and value of the business.
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
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
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 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.
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.
Roadside assistance–This coverage can help if your vehicle breaks down or you are stranded on the side of the road
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.
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.
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.
You must furnish evidence of the damage, loss, or theft, such as photographs of the damaged item or proof of the item's worth.
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.
Generally, the policy offers an additional $1-2 million in coverage, which can be added to the primary liability policy's limits.
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.
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.
Unlike other types of insurance, workers comp coverage has no ceiling or limit on the policy amount.
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
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.
| 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 |
Get all the best quotes from leading providers in a click of a button!
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:
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
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
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
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
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
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
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
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
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
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
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
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
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!
Not all those who wander are lost.
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