For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!
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.Â
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.Â
| 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.
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| 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.
