You’re not just mixing up moisturizers, you’re building a meaningful brand with your own two hands.
Even small-batch products can lead to big claims, but with the right liability insurance for skin care products, you can protect your business (and your peace of mind).
Quick Quiz: Do I Need Skin Care Insurance For My Business?
- Which statements applies to you?
- I make or sell topical skincare products
- I sell online (Etsy, Amazon, Shopify, etc.)
- My state or city requires business liability insurance
- I want to get into local markets or pop-up events
- I use actives, oils, or fragrances that could cause reactions
- I want to stock my product with retailers or boutiques
- I don’t want to pay legal fees out of pocket
If even one applies, then you’re not just a hobbyist — you’re running a real business. Let’s protect it like one!
What Kind of Insurance Do You Need to Sell Skincare Products?
You’ll likely need product and general liability insurance to sell skincare products, but your policy should be unique to you. Insurance isn’t one-size-fits-all and can be customized to your business, the same way skincare routines can be tailored to each individual.
| Coverage Type | What It Covers | How It Works |
|---|---|---|
|
Injuries, allergic reactions, or property damage caused by your products |
A customer says your serum caused a rash — this helps pay for legal fees, settlements, or damages |
|
|
Third-party injuries or property damage that happen around your business (not because of your product) |
Someone trips at your booth during a market or event — this can pay for their medical bills |
|
|
Claims from hands-on services you provide (not what you sell) |
You offer soap-making classes, and a student experiences an unexpected reaction — this covers the service-based risk |
Product liability insurance Coverage
What It Covers
Injuries, allergic reactions, or property damage caused by your products
How It Works
A customer says your serum caused a rash — this helps pay for legal fees, settlements, or damages
General liability insurance Coverage
What It Covers
Third-party injuries or property damage that happen around your business (not because of your product)
How It Works
Someone trips at your booth during a market or event — this can pay for their medical bills
Professional liability insurance Coverage
Professional liability insurance
What It Covers
Claims from hands-on services you provide (not what you sell)
How It Works
You offer soap-making classes, and a student experiences an unexpected reaction — this covers the service-based risk
Optional add-ons:
- Tools and equipment insurance (inland marine): Covers damage or theft of movable business gear, such as booth supplies, product ingredients, or laptops
- Cyber liability insurance: Covers costs related to ransomware, exposed customer data, or payment info breaches, like credit monitoring or data recovery services
- Product recall insurance: Covers costs to notify buyers and pull products off shelves if there’s a safety issue
Bottom Line: If you make or sell skincare products (especially those with oils, fragrances, or active ingredients), product liability is a critical coverage. Other types of protection depend on what you do and where you sell.
What Risks Does Skincare Insurance Protect You From?
Skin care product liability insurance is designed to cover claims like:
- Customer allergic reactions
- Property damage from products
- Legal fees and settlements
- Product-related claims from samples at events
If you’ve ever thought, “I just want to make great products and not get sued,” you’re not alone, and you’re not wrong. That’s why having insurance to sell beauty products is essential. It helps prevent a single claim from harming your business, reputation, and potentially your wallet.
5 Real-World Moments Covered by Skin Care Insurance
Here are a few common scenarios skin care insurance is designed to help with:
The Cause: A customer claims your lotion caused a rash or a chemical burn.
The Coverage: Product liability insurance can pay for your legal defense, cover medical bills, and help with potential legal settlements.
The Cause: Someone sues over a missing allergy warning on your label.
The Coverage: Product liability coverage can step in to handle labeling-related claims, especially when they’re tied to customer injuries.
The Cause: A leaky serum stains a customer’s $700 couch.
The Coverage: When your product causes property damage, product liability insurance can pay for repair or replacement costs.
The Cause: Your online store is suspended due to a pending claim.
The Coverage: Having insurance helps you respond more quickly and often prevents platforms like Etsy or Amazon from suspending your online store indefinitely.
The Cause: A retailer asks for proof of insurance before carrying your products.
The Coverage: Your Certificate of Insurance (COI) shows partners that you’re covered and helps you secure wholesale deals.
You don’t need to be a big brand to face significant risks, but you don’t need a big budget to protect yourself, either.
Our risk advisors placed a policy for a client, enabling them to meet the insurance requirements in their contractual obligations, which opened up an entirely new revenue stream.
What Skincare Product Liability Insurance Is Not Designed to Cover
Just like SPF has UV limits, even the best skin care business insurance policy has limits. Consider this our version of the warning label on a product, and check out what’s typically not covered by skincare insurance:
| What’s Not Covered | Why It Matters |
|---|---|
|
Products not listed on your policy |
You must list all products to be eligible for coverage |
|
Claims before your policy started |
Coverage begins when your policy does — anything before is your own responsibility |
|
Fraud or intentional misuse |
Insurance covers accidents, not any harm you cause on purpose |
|
Products with harmful ingredients |
High-risk ingredients, such as parabens, phthalates, or ammonium thioglycolate, require special approval to be covered |
|
Restricted product types |
Items like hair relaxers, talc powders, or alcohol-based products may have limits or require approval before coverage applies |
|
Product recalls |
You’ll need product recall coverage to cover the costs of pulling products from the market. Without it, those expenses fall on you |
|
Employee injuries |
Volunteers and paid staff need workers compensation to cover injuries, illness, or reactions caused while on the job |
|
Ingestible beauty products (vitamins, supplements, or pharmaceuticals) |
“The glow starts from within,” but ingestible products often require vitamin and dietary supplement coverage |
Is Insurance Required to Sell Skincare Products?
While there are no nationwide mandates requiring insurance to sell skincare products, many major online marketplaces, retailers, and events list insurance as a prerequisite to sell. Here’s what that looks like:
| Platform / Partner | Requires Insurance? | What You Need to Know |
|---|---|---|
|
Amazon |
Yes (if you have $10,000+ in revenue per month) |
Must provide a COI and list Amazon as an additional insured |
|
Etsy |
Strongly advised |
The Sellers Policy explicitly excludes any help for sellers from Etsy for product-related claims |
|
Farmers markets and events |
Often required |
Most require proof of insurance to secure a vendor spot |
|
Shopify |
Strongly advised |
You’re liable for product claims (even from online sales) |
|
Retail stores and manufacturers |
Yes |
Proof of insurance is usually a condition of partnership |
|
Distributors and fulfillment centers |
Yes |
You’ll need to show a Certificate of Insurance before signing a contract |
|
State or city governments |
Sometimes required |
Some areas need insurance to approve licenses (home or retail) |
Amazon
Requires Insurance?
Yes (if you have $10,000+ in revenue per month)
What You Need to Know
Must provide a COI and list Amazon as an additional insured
Etsy
Requires Insurance?
Strongly advised
What You Need to Know
The Sellers Policy explicitly excludes any help for sellers from Etsy for product-related claims
Farmers markets and events
Requires Insurance?
Often required
What You Need to Know
Most require proof of insurance to secure a vendor spot
Shopify
Requires Insurance?
Strongly advised
What You Need to Know
You’re liable for product claims (even from online sales)
Retail stores and manufacturers
Requires Insurance?
Yes
What You Need to Know
Proof of insurance is usually a condition of partnership
Distributors and fulfillment centers
Requires Insurance?
Yes
What You Need to Know
You’ll need to show a Certificate of Insurance before signing a contract
State or city governments
Requires Insurance?
Sometimes required
What You Need to Know
Some areas need insurance to approve licenses (home or retail)
3 Mistakes New Skincare Sellers Make With Insurance
Learn from these three mistakes of sellers who came before you, so you don’t have to relabel mid-launch or scramble before a craft fair.
- Getting general liability instead of product liability
They sound similar, but only product liability covers things like allergic reactions or customer injuries caused by your products. Hint: most sellers need both! Not listing all products or ingredients
If your best-seller isn’t listed on your policy, it won’t be covered, no matter how great it is. Every product and ingredient needs to be disclosed for full protection.Waiting until you get asked for coverage
Retailers, platforms, and markets move fast. If they ask for insurance and you don’t have it? You might lose the opportunity.
Pro Tip: Starting a skincare line? Make sure you know the common mistakes new beauty brands make. Our guide to launching a makeup line breaks it down.
What Happens If You Don’t Have Insurance?
Accidents can happen even when you’re doing everything right. And without business liability insurance for skin care products, those risks don’t just threaten your products — they can impact your online store, income, and entrepreneurial dreams.
Let’s break down what’s really at stake…
- You pay legal fees and settlements out of pocket: Even a single claim can cost $5,000 to $50,000+ in legal defense fees, medical bills, or settlements (and without insurance, your business and personal assets are on the line)
- Platforms like Etsy or Amazon suspend your store: If you can’t provide proof of insurance, you could lose access to your entire online store overnight
- Retailers or markets turn you away: Many wholesalers, pop-ups, and craft fairs require a COI (no insurance = no entry)
- Your business pauses during a legal investigation: Without coverage, every hour spent resolving a claim is unpaid time away from your products, sales, and customers
- Your reputation suffers, even if your product was safe: You can still get sued, even if you did nothing wrong, causing potential misunderstandings about your business
Insurance can’t prevent problems from happening, but it can prevent them from bringing your business down.
How Much Does Skincare Product Liability Insurance Cost?
You don’t need big-brand money to get big-brand protection. Skin care product liability insurance starts at $99 per month and is designed for indie makers, side hustlers, and full-time sellers. Your exact price depends on:
- What you sell (creams, oils, serums, etc.)
- Where you sell (online, in-person, or both)
- Your annual revenue
- Risk level of your ingredients (CBD [cannabidiol], SPF, etc.)
Learn more about coverage and pricing on our skin care insurance page.
How to Get Skincare Product Liability Insurance in 4 Easy Steps
Your products are built with care, and your insurance should be too. Insurance Canopy helps you protect what you’re building with quick, customizable quotes delivered in minutes:
- Answer a few quick questions (What do you sell? Where do you sell it?)
- Choose your policy limits and any add-ons
- Get your quote fast
- Download your instant proof of insurance
Common Questions About Skincare Insurance
Will product liability insurance cover allergic reactions?
Yes, product liability insurance can cover allergic reactions. If a customer claims your product caused a rash, burn, or other skin issue, your policy is designed to cover legal costs and potential damages.
Can I get covered if I use CBD or essential oils?
Yes, you can receive coverage if you use CBD or essential oils! Insurance Canopy offers coverage for products made with CBD or hemp oil. When in doubt, list every ingredient and product you plan to sell (especially ones with higher sensitivity risk). It helps ensure you’re fully protected and avoids claim denials later.
Do I need insurance if I only make $1,000 per year selling skincare products?
Yes, you need insurance even if you only make $1,000 per year selling skincare products. There’s no minimum income requirement when it comes to risk. Whether you’re full-time, part-time, or just starting out, you’re still responsible for your product once it leaves your hands.
Insurance Canopy provides affordable protection that scales with your business, no matter how big (or small) your sales are!
