Etsy Business Insurance
4.8/5 on
- Safeguard your shop against product-related claims
- Protect your handmade goods, vintage finds, and creative work
- Customize your coverage to fit your unique needs
What Is Etsy Business Insurance?
Etsy business insurance is product business insurance designed to protect shop owners from claims related to the products they make and sell — coverage that the Etsy Purchase Protection Program for Sellers doesn’t provide.
While Etsy’s current seller protections aim to protect sellers from shipping and listing accuracy disputes by shoppers, they explicitly state their program is not an insurance policy, and you have no legal claim under the program. This means any claims or lawsuits arising from the products you sell fall on your business to defend.
Insurance Canopy’s Etsy product liability insurance is built to provide seller protection where you need it most, so a customer injury or property damage claim doesn’t derail your whole business.
What's the Difference Between Etsy Seller Protection and Etsy Seller Insurance?
While Etsy’s Purchase Protection for Sellers is designed to resolve shipping and listing accuracy disputes from customers, it does not offer liability protection for sellers. Insurance Canopy’s liability insurance for Etsy sellers is designed to pick up where Etsy’s program stops by providing product liability and general liability coverage for ecommerce sellers.
| What Etsy's Purchase Protection Program Is Designed to Cover | What Insurance Canopy's Online Seller Insurance Is Designed to Cover | ||
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Refunds to buyers, up to $250 per qualifying order
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Coverage is scoped to the actual cost of a claim, up to $1 million per claim/$2 million total per policy year |
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Orders that don’t arrive, arrive late, arrive damaged, or have listing accuracy disputes |
Third-party injuries or property damage caused by a product you sold
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Refund protection only (explicitly not insurance, a warranty, or a guarantee) |
Actual insurance (legally binding coverage, not a discretionary program)
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Applies only if you meet Etsy’s eligibility rules (tracking, processing times, shipping methods, etc.) |
Applies based on your policy terms, independent of Etsy’s operational requirements |
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A buyer’s legal right to pursue a claim against your shop stays intact either way |
Can respond to legal claims by paying product liability defense costs and damages if a buyer sues
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With Insurance Canopy’s Etsy seller insurance, you don’t have to face product liability lawsuits alone.
Who Needs Etsy Seller Insurance?
You need Etsy seller insurance if you’re selling physical products online, especially if they could be used, worn, or consumed by others. Types of sellers who benefit most include:
- Handmade Beauty Product Sellers
- Artists and Crafters
- Ecommerce Businesses
- Vintage & Antique Resellers
- Indie Brands
- Product Manufacturers
Insurance Canopy’s product liability insurance can follow your shop beyond Etsy to eBay, Shopify, craft fairs, antique shows, and other marketplaces, so you’re protected in person and online.
Dig deeper: Our guide to product liability insurance details more of what’s covered, what’s not covered, costs, and other frequently asked questions.
Why Do Etsy Sellers Need Insurance?
Etsy sellers need insurance because Etsy doesn’t protect them if a customer makes a product-related claim against their shop. That means your business could be held responsible for injuries, property damage, or lawsuits tied to your products. That’s where product liability protection comes in.
Cover your craft: Insurance can help cover medical bills, legal defense, or settlements if a product harms a customer, causes a fire, or damages property in some other way
Grow your brand: A Certificate of Insurance (COI) is often the key to expanding into other online marketplaces, wholesale platforms, corporate clients, and vendor events
Sell beyond Etsy: Coverage can extend to your entire ecommerce business, even if you also sell on Amazon, eBay, Shopify, or at in-person craft fairs
Peace of mind: Focus on designing, listing, and growing your shop while your insurance policy helps handle product-related claims
Did you know?
Even if you didn’t make an item (like a vintage resale), you can still be sued if you sell it and it hurts someone or causes property damage.
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They provided clarity on the importance of insurance for a first time business owner in the cleaning space and provided clear insight next steps and options for coverage.
Evergreen Multiservices
February 2, 2026 -
Extremely user friendly website, super affordable and very little time needed to apply.
Carl Sari
January 31, 2026 -
Excellent company, Great service, the best!!!
Claudina Adams
January 15, 2026 -
Super affordable insurance for a small business like myself super happy to be able to provide this to my customers really helps of landing more gigs
Alex
January 5, 2026 -
Really went the extra mile to find the appropriate coverage for my business.
Daisy B
January 2, 2026 -
Canopy provided escatly what I neede to book the gig, and at a very affordable price.. Thank You!
Andy Anderson
December 22, 2025 -
Easy. Convenient. Trustworthy. Came thru in a moments notice
Eddie K
December 19, 2025 -
Affordable liability insurance for DJ's. Easy to set up and understand. I've been with them for several years and am happy with their service.
Peter Flessas
December 14, 2025 -
So easy to sign up. I hope I never have to use the insurance portion but most hotels require it for corporate gigs
Yuri Gonzalez
December 11, 2025 -
This company is great. They are very helpful and they have great prices for insurance options that cover what you need!
Jacob Serrano
December 6, 2025
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They provided clarity on the importance of insurance for a first time business owner in the cleaning space and provided clear insight next steps and options for coverage.
Evergreen Multiservices
February 2, 2026Extremely user friendly website, super affordable and very little time needed to apply.
Carl Sari
January 31, 2026Excellent company, Great service, the best!!!
Claudina Adams
January 15, 2026 -
Super affordable insurance for a small business like myself super happy to be able to provide this to my customers really helps of landing more gigs
Alex
January 5, 2026Really went the extra mile to find the appropriate coverage for my business.
Daisy B
January 2, 2026Canopy provided escatly what I neede to book the gig, and at a very affordable price.. Thank You!
Andy Anderson
December 22, 2025 -
Easy. Convenient. Trustworthy. Came thru in a moments notice
Eddie K
December 19, 2025Affordable liability insurance for DJ's. Easy to set up and understand. I've been with them for several years and am happy with their service.
Peter Flessas
December 14, 2025So easy to sign up. I hope I never have to use the insurance portion but most hotels require it for corporate gigs
Yuri Gonzalez
December 11, 2025 -
This company is great. They are very helpful and they have great prices for insurance options that cover what you need!
Jacob Serrano
December 6, 2025Great experience, quick and easy to understand with what I needed for my business. Highly recommend!
FrankLynn Rae
October 28, 2025Very helpful customer service! Prompt, punctual, effective! No bots or long waits to get assistance.
Maria Ciccone
October 19, 2025 -
Canopy insurance has made affordable, band insurance needed for major venues. Thank you for your fast and easy service Stan Zizka's Del Satins
stan zizka
October 5, 2025Getting a vendor policy was quick and fairly priced compared to other quotes.
Kristine Fullerton
October 3, 2025Thank you so much
Steve Monreal
July 11, 2025 -
I needed a portable policy as a yoga instructor. I found this company in an online search. Called and got details from them, was quite surprised at how affordable... Read More
Jamie Calaway
July 4, 2025Very easy & quick experience. We got insurance in no time with no hassle. Thank you!
Robert Earnest
July 4, 2025I am glad I went with them. I needed a last minute policy to cover an event I was doing and they had exactly what I needed at a... Read More
Deloris Pacheco
June 27, 2025 -
Very easy to renew policy
Elyce Nissinoff
June 18, 2025Representative Sarah was very helpful. Walked me through every step and not to mention the price even matched the service! Would recommend to any and everyone.
queenkiam
June 18, 2025Would have 5 starts, but not right now. This is the first time I have ever had to pay for an additional insured ever in 20 year's. They either have... Read More
Anthony Burgess
June 18, 2025 -
Very user friendly platform. Multiple options. Very good pricing. Needed liability insurance in order to secure a very good paying event for my solo tribute show. Was set up within... Read More
Michael Riley
June 18, 2025Needed DJ insurance for Memorial Day weekend & was squared away within an hour for 2 events! Highly recommend
Jay Solis
June 18, 2025What a lovely experience I had with Insurance Canopy! Easy and fast sign up, great policy, matches my needs as a self-employed business owner. Highly recommend!
Masha Rusanov
June 18, 2025 -
great little company, with fair pricing, for entertainers who need occasional coverage. however, they have long hold times to speak to an agent, and their customer service left a little something... Read More
Gretje Angell
June 18, 2025Provides event insurance at a very reasonable price compared to other companies. Easy to purchase and provide proof of insurance.
David Fox
May 18, 2025They can help.you with the right Insurance you need, and the lowest price
Alvaro Baltazar
May 18, 2025 -
everything is excellent
Radames Martinez
May 18, 2025Extremely affordable event insurance and an easy to work with system and team that will advise you every step of the way!
Ishan Arvin
May 18, 2025Affordable for dance & yoga folk. Thumbs up!
Maia Claire
May 18, 2025
Get custom coverage for your online business with a fast application, quick turnaround, and licensed support whenever you need it.
How Much Does Etsy Business Insurance Cost?
Most online sellers pay an average of $116 per month or less for Etsy business coverage from Insurance Canopy.
Each policy is tailored specifically to your business, so you only pay for the coverages you need. The cost of ecommerce business insurance depends on:
Annual Revenue: Higher sales volume increases risks, which can raise your premium cost
Product Type: Higher-risk or high-value items, like candles or skincare products, may cost more to cover
Sales Channels: Multi-platform sellers may need broader coverage
Claims History: Previous claims may signal higher risk, which can impact your rate
Desired Coverage Limits: Like any upgrade, increasing limits or adding extra coverage comes with additional costs
Etsy Business Insurance for Small Businesses
Insurance Canopy offers core product business insurance and customizable add-ons to meet your specific needs. Our Etsy shop insurance includes general liability and product liability coverage, with up to $1 million per claim and $2 million total per policy year.
Looking for extra protection? Our licensed agents can help you customize your plan with higher limits and add-on coverages tailored to your business model.
Included
General Liability Insurance
General liability insurance is built to cover third-party injury or damage claims that are not directly caused by your products, like if someone trips in your booth at a craft fair. It also helps with legal costs if you’re ever accused of advertising injury, like copyright infringement.
Products & Completed Operations Insurance
Product liability insurance is designed to protect you from claims related to the products you sell, even if you use factory-made or vintage components. If a customer claims damages caused by something you sold, this coverage can help pay for legal defense, medical bills, and settlements.
Recommended Optional Add-On Coverages
- Product recall insurance: Helps you act fast if something needs to be pulled from the market
- Commercial property insurance: Can protect the space and tools you rely on for operations
- Workers compensation insurance: Designed to cover medical bills, lost wages, and recovery costs if someone’s hurt on the job — legally required in most states if your business has employees, even if they’re part-time
- Inland marine insurance: Helps protect tools, displays, and inventory while on the move or at craft shows and events
- Cyber liability insurance: Helps cover the fallout from cyberattacks and data breaches
- Errors and Omissions (E&O) insurance: Can protect your business if a product recommendation, advice, or service mistake costs a client money
- Amendment of Coverage Territory endorsement: Can extend coverage worldwide for claims outside the U.S., which helps if your products sell internationally or reach overseas customers
- Primary & non-contributory endorsement: Ensures your policy pays first on a claim, before anyone else’s — often required when other businesses want your coverage to apply before theirs
- Waiver of subrogation: Commonly requested to keep business relationships smooth, it stops your insurer from pursuing a third party to recover claim costs
- 30-Day cancellation notice: Notifies a third party, usually an additional insured, that your policy will be canceled within 30 days
Seller protection that doesn’t end when the sale does.
- Apply online in 10 minutes or less
- Enjoy A+ rated coverage
- Access your online dashboard 24/7 to download your certificate of insurance or add additional insureds
FAQs About Etsy Seller Insurance
Do I Need Insurance to Sell on Etsy?
Currently, Etsy does not require sellers to carry insurance, but sellers are still responsible for product-related claims. Without their own liability coverage, sellers could have to pay out of pocket for costly claims and lawsuits if a customer sues over a product-related injury.
Does Etsy Seller Insurance Cover Candles, Skincare, or Food Products?
Yes, Etsy seller insurance can be tailored to your business and the products you make, whether they’re candles, skincare items, food products, or handmade crafts. A quick 10-minute application lets Insurance Canopy customize a free quote based on what you sell, your business operations, and any optional coverages you might choose to add.
Does Etsy Seller Insurance Cover Vintage or Secondhand Items?
Yes, Etsy seller insurance is designed to protect against product-related claims and lawsuits over vintage and secondhand items, as long as those items aren’t explicitly excluded from coverage.
What Does Etsy Seller Insurance Not Cover?
Etsy seller insurance does not cover your own lost revenue, intentional misconduct, or non-physical issues like late shipping or bad reviews. It also does not cover products intended for children or infants.
Still have questions regarding our policies? Feel free to reach out to our licensed insurance agents. We are available Monday through Friday from 8am–8pm ET.
Standard product liability insurance policies typically limit coverage to the U.S., Puerto Rico,
Product liability lawsuits happen when a product causes bodily injury or property damage,
When you sell a product, you’re also taking on responsibility for what happens