You’re the “one-off hobbyist” — crafting, creating, or offering your skills here and there for fun. It’s not quite a business, but it could be more than a simple hobby. It’s you doing what you do best, and enjoying it!
Even if it’s occasional, accidents happen. Insurance has your back if someone gets hurt, your product causes trouble, or something breaks during your passion projects.
What is Hobby Business Insurance?
Hobby business insurance is small business insurance in a more flexible, affordable package.
Whether you’re selling for fun or profit, the risks are pretty similar. What does change is your risk, how much coverage is needed, and the total cost of insurance.
Hobby Insurance
- Short-term, pay-as-you-go policies
- Fewer coverages
- Lower limits
- Affordable and flexible coverage when you need it
Commercial Business Insurance
- Annual or monthly payments
- More comprehensive coverage
- Higher limits and add-ons
- Year-round protection for full-time businesses
Hobbyists’ coverage tends to be a short-term policy that protects you when taking your hobby “out of the house,” so to speak.
Think of it this way: an artist is an artist, whether painting for passion or profit. They might need quick coverage to attend an art show for a few days, but nothing else.
Types of Hobbyists Who Need Business Insurance
From the “just for fun” to the “just on the side” hobbyists, insurance is a smart move for anyone offering a service, providing a product, working in a public space, or earning some extra cash.
Examples of hobbyists who benefit include:
- Beauty pros and personal stylists
- Crafters and makers
- Design consultants
- Graphic artists
- Home bakers and cooks
- Part-time DJs
- Party planners
- Photographers and videographers
- Private tutors and teachers
- Vintage resellers
- Writers and editors
Insurance keeps your hobby safe from surprise expenses, so you can focus on what you love, stress-free!
Risks Popular Hobbies Carry
| Hobby | Activity | Risks | Recommended Policy |
|---|---|---|---|
|
Photographer |
Shooting a friend’s wedding or party |
Equipment damage, guest injury |
|
|
DJ |
Volunteering for a party or small gig |
Property damage, guest injury, venue rules |
|
|
Home Baker |
Baking weekly for a local charity |
Food allergies, contamination |
|
|
Crafter |
Selling items at holiday markets |
Slip-and-fall hazards at your booth |
|
|
Nail Tech |
Servicing clients in a home salon |
Client injury, property and equipment damage |
|
|
Design Consultant |
Giving interior design advice to friends/family |
Miscalculation, property damage |
|
|
Vintage Reseller |
Selling thrifted goods online or at markets |
Customer injury, listing errors, event rules |
Why Do Hobbyists Need Insurance?
Sure, it might feel like “just one event,” but accidents can pop up anytime — guest injuries, property damage, or even a surprise food allergy can lead to costly headaches.
Plus, showing you’re insured makes casual customers and friends take you seriously (and your hobby deserves to be seen as the real deal!).
Even if you’re working for free, risks don’t take a break. Having coverage keeps you protected.
When Does a Hobby Become a Business?
The IRS says if you make money from your hobby, it’s officially a business, and that income needs to be reported on your taxes. This type of income technically classifies you as a sole proprietor.
Good news: you don’t need to be an “official” business to get insurance, and getting insurance won’t suddenly make you a legal business in the IRS’s eyes either. It’s just smart protection, no paperwork required!
The Top 4 Types of Insurance for a Hobby Business
Affordable, short-term, or event-based insurance options are designed to fit your irregular gigs. No long contracts or pricey policies are needed!
Our vendor policy includes the top four coverages every hobbyist should have:
1. General Liability Insurance
- What it is: Your all-around superhero coverage that protects you if someone gets hurt or their property gets damaged because of your hobby
- What it covers: Bodily injury, property damage, and legal fees if you get sued. It’s peace of mind for your creative hustle
2. Damage to Premises Rented to You
- What it is: Coverage that steps in if you accidentally damage the venue or space you’re renting for your gig
- What it covers: Repairs or replacement costs if you cause damage to a rented booth, studio, or event space
- What it is: A safety net to cover minor medical bills if someone gets hurt on your turf, regardless of who’s at fault
- What it covers: Medical costs, like hospital bills or ambulance fees, for guest injuries at an event, in a workspace, or in your home
4. Personal & Advertising Injury
- What it is: Protection against claims like slander, libel, or copyright infringement tied to your business or marketing
- What it covers: Legal fees and settlements if someone accuses your hobby of harming their reputation or using their content without permission
Insurance Upgrades for Pro Hobbyists
The IRS says if you make money from your hobby, it’s officially a business, and that income needs to be reported on your taxes. This type of income technically classifies you as a sole proprietor.
Good news: you don’t need to be an “official” business to get insurance, and getting insurance won’t suddenly make you a legal business in the IRS’s eyes either. It’s just smart protection, no paperwork required!
- What it is: Coverage for claims related to injuries or damages caused by your products
- What it covers: Protection if a customer is harmed by something you sell
Professional Liability Insurance
- What it is: Also known as Errors & Omissions (E&O), it’s protection against claims of errors, omissions, or negligence in the advice or services you provide
- What it covers: Legal costs if a client alleges your work caused them financial loss
- What it is: Also known as Inland Marine Insurance, it covers the tools, equipment, and gear used in your hobby
- What it covers: Repair or replacement if your gear is damaged or stolen
Pro Tip: Homeowners’ policies cover some personal belongings, but usually with lower limits that are insufficient for valuable hobby equipment.
- What it is: Extends your coverage to other parties involved in your hobby, like venues, studios, or events.
- What it covers: Protects the additional insured parties from risks related to your activities.
Event vs Annual: How to Choose the Right Policy
Does this sound like you? If so, an annual policy might be the better fit!
✔️ Hitting up more events
✔️ Booking paid gigs regularly
✔️ Getting repeat customers
✔️ Bringing in steady income
✔️ Selling products that need protection
✔️ Offering services that need coverage
✔️ Wanting theft and damage protection
✔️ Needing coverage beyond just events
An annual policy gives your budding business broader protection and can save you money over time without juggling multiple short-term policies all year long.
Common Misconceptions About Hobby Business Insurance
Misconception:
“I don’t need insurance because I only do this for fun.”
Reality:
Accidents don’t know who’s a pro and who’s a hobbyist — they can happen at any time to anyone. Without insurance, you’re putting your personal finances and assets on the line.
For example, a photographer rented a studio to take photos during a family reunion. A young child was posing on a ladder when it tipped, damaging some nearby equipment and injuring the child. Who’s responsible for the repairs? Who’s paying the child’s medical bills?
Misconception:
“Insurance is too expensive for my hobby.”
Reality:
Insurance can work when you do! Starting at just $49 for three days, short-term coverage gives you quick, affordable peace of mind. It’s perfect for those occasional gigs.
Misconception:
“I’m not making money, so I’m not at risk.”
Reality:
Risk isn’t about income; it’s about what you do, where you do it, and who’s around.
For example, a local home baker regularly shares free treats online but doesn’t use professional labels. One batch of brownies had almond extract, causing allergic reactions that led to hundreds of thousands in medical bills. No sales were involved, but the baker was still liable for the accident.
Misconception:
“My homeowner’s insurance covers me.”
Reality:
Most homeowners’ and renters’ insurance policies will not cover claims related to a for-profit business or hobby. These policies are intended for your personal life, not your hobbies or side-hustles. If someone’s hurt or your gear is stolen, those bills might bounce back to you.
Protect Your Passion with Peace of Mind
Your hobby is meant to be fun, not full of paperwork or liabilities. Insurance Canopy makes it easy to cover side gigs, hobbies, and part-time hustles of any size. Our online, streamlined process gets you covered fast and affordably, whenever you need it.
✅ Short-term liability for quick coverage or one-off events
✅ Year-round plans for serious hobbyists
✅ Specialty policies tailored by industry
✅ Flexible start dates — buy now, cover later
✅ Instant access to your Certificate of Insurance (COI)
✅ Add unlimited additional insureds*
✅ 24/7 online access to policy docs and claims
✅ Optional equipment coverage on annual plans*
*Depending on the policy type, additional fees may apply.
FAQs About Insurance for a Hobby Business
What’s the Difference Between Hobby Insurance and Regular Business Insurance?
The differences between hobby insurance and regular business insurance are:
- Policy length
- Coverage amount
- Premiums
Hobbyists often choose short-term policies for the convenience and flexibility they offer, usually sticking to basic coverage without the extras a full-time business might require.
How Much Does Hobby Business Insurance Cost?
Hobby business insurance costs start at $49 per event and vary depending on policy type, length, and coverage level.
Popular types of hobbyists we insure (and their starting policy price) includes:
- Artists and crafters
- 1–3 days: $49/event
- 365 days: $24.25/month
- Bartenders and alcohol services*
- 1–3 days: $275/event
- 365 days: $35.42/month
- Beauty services
- 365 days: $9.99/month
- DJs and Entertainers
- 1–3 days: $59/event
- 365 days: $18.50/month
- Food, baking, and catering
- 1–3 days: $49/event
- 365 days: $25.92/month
- Photographers and videographers
- 1–3 days: $59/event
- 365 days: $12/month
- Vendors and exhibitors
- 1–3 days: $49/event
- 7 days: $99/event
- 90 days: $149/event
*Prices vary by state.
Can I Get Insurance for One Event or One Gig?
Yes, you can get insurance for one event or gig with a vendor policy starting at $49/event! Coverage lasts for three days and includes general liability protection during set-up, the event, and tear-down.
If I’m Just Gifting My Products or Services, Do I Still Need Insurance?
Yes, you still need insurance if you’re gifting your products or services. You never know who may get hurt, what may get damaged, or which venues may require a Certificate of Insurance!
Insurance can:
- Provide proof of insurance that’s required to DJ your friend’s wedding
- Cover allergic reactions that your face paint may cause at your niece’s party
- Pay for accidental damages while doing an in-home photo shoot for your cousin
Even if it’s a gift, insurance keeps you protected.
