Business Advice

Do I Need Insurance to Sell Crafts Online?

Selling handmade crafts on online marketing platforms is a great way of boosting income for your crafting business.

Popular crafting marketplaces, such as Folksy, Etsy, Ebay and Not On The High Street, host independent craft stores based all around the world and together, see millions of buyers searching for handmade goods.

At CraftCover, many of our current clients use online outlets as one of their main selling platforms. When you spend a significant amount of time creating unique and bespoke products, you want to be sure that your efforts are rewarded with adequate cover and protection from a great insurance provider.

What are online craft marketplaces?

Online craft marketplaces are e-commerce platforms that allow crafters to sell their handmade goods and creative products.

They often promote the creation and sale of vintage crafts, upcycled products and bespoke items. These marketplaces host millions of independent crafters and sellers’ stores and are hugely popular with many small business owners.

Some popular examples of these online marketplaces include:

  • Folksy
  • Etsy
  • Ebay
  • Not on the highstreet
  • Amazon Marketplace/Amazon Handmade
  • Facebook Marketplace
  • Redbubble
  • Depop

It is important to mention that these sites will each have their own individual policies when it comes to needing insurance, so you must review these terms before selling on them.

Is it compulsory to have insurance to sell crafts online?

For most popular online marketplaces the answer is simply, no. It isn’t usually compulsory to have insurance in place in order to open an online store through an ecommerce marketplace.

You can open up your own online store through these sites and start selling without any insurance or cover, if you wish to do so. It’s important to remember however, that you won’t be covered by the company themselves should anything happen to your products or to a customer as a result of your items.

Most of these sites will explain how to protect your business through them and what their own policies contain in reference to covering your sales, but this isn’t always extensive and won’t be effective in most scenarios where you’d need to be covered.

Either way, it is always wise to have external insurance in place to protect you, your business and your goods.

What does crafting insurance cover when selling online?

Getting appropriate insurance is vital in ensuring adequate protection, particularly for small businesses who may not have the current available expenditure to be able to fund legal costs or replace goods in the event of an incident.

There are two main types of insurance that will cover your craft business should you take out a policy with CraftCover. These are:

Product Liability Insurance

Product Liability Insurance is an area of crafting insurance that will protect you should you have an issue with your products, such as:

  • Theft
  • Loss
  • Damage
  • Harm to the public as a result of your products

We hope that our crafters never experience theft or losses – though there are some things that you can do to help lower the risk of these incidents.

Public harm however? Mostly, out of your control.

There is always something that someone could attempt to claim for. From wax melt burns to a customer’s undisclosed cosmetic or food allergies – regardless of whether the fault is completely down to the customer – you can be sued.

Make being sued less of an issue by getting great insurance! Simple.

Public Liability Insurance

Although Public Liability Insurance typically refers to covering craft fairs and events, it is still necessary to ensure that your business is protected from any other legal matters should a member of the public sue you due to an incident involving your business.

This may seem trivial, but in the crafting world, anything can happen.

Someone hurts themselves on your crafting stall at the local fair? That’s a claim waiting to happen. Maybe somebody drops one of your beautifully handmade candles and cuts themselves on the glass. That’s not your fault though, is it? It’s still however, a potential claim.

Don’t let these incidents ruin your hard work.

Do online marketplaces provide any cover themselves?

Some marketplaces do offer a ‘sellers protection’ policy, such as Etsy, which allows them to work with you to resolve customer issues such as:

  • Lost packages
  • Damaged goods
  • Refunds
  • Payment issues

They only cover customer disputes in relation to the above issues – any other problem you may encounter will only be protected if you have appropriate, externally sourced insurance, such as crafting insurance from us at CraftCover.

Do I really need insurance for my online shop?

This depends on how far you value the importance of insurance. Most online marketplaces will not demand this from you; it is entirely your choice to make. Keep in mind however, the fact that you have probably spent a substantial amount of time, effort and resources on creating your goods therefore, protect them!

Without insurance, your business – whether well established or a small start up – may face extensive costs due to accidents and issues. This amount could be way above what you can afford. We can help you by covering these significant costs as part of your crafting insurance policy.

We want all of our crafters to have safe, secure and profitable businesses. To do this, you’ll need the right insurance in place. If you’re considering starting up your own craft business, check out our ultimate guide to starting a craft business to learn more about the importance of insurance along with other great tips!

We can’t stop the family dog from knocking over your shelf of freshly decorated mugs. We can offer you insurance that’ll save you from forking out for these problems in the future!

How much does insurance for selling online cost?

The cost of getting insurance for your crafting business will depend on a lot of factors, including:

  • The size of your business;
  • The types of products you sell;
  • The amount/range of products you sell;
  • The places and platforms in which you sell your products;
  • The type of coverage you need.

In any case, contact us to discuss your craft business insurance needs. We will learn about your business, products and online shop (if you have one) in order to decide upon the most appropriate insurance package for you.

Getting cover for your online store with CraftCover

We are more than happy to have a chat with you about your craft business and discuss your options for insurance packages that ensure ultimate protection and cover. You can call us today on 0345 463 3003 or alternatively, request a quote through our online form and we can offer you an initial insurance quote for your business.

Getting insurance for your small, or large, business and your online store is vital to ensure the best protection should the worst happen.

At CraftCover, we have made getting the right, bespoke insurance package simple. Get in touch today.