Craft Makers Insurance
Your booming craft empire may have started with making earrings or hats for yourself, but now you're selling your wares to strangers on the Internet and at craft fairs. You've made it. So now is probably a good time to get crafting insurance in case something goes wrong. Let's take a look at the common craft business insurance policies that can protect you at craft fairs and beyond.
General Liability Insurance
If you sell your work at events, your contract with the event organizer probably requires you to purchase public liability insurance for craft fairs. The contract may also refer to this coverage as craft stall insurance.
Those are typically just other terms for General Liability Insurance, a policy that protect jewelry makers, crafters, and other artisans when common accidents lead to third-party bodily injuries. (For reference, a third party can be anyone who isn't an employee of your craft business, such as a client, customer, venue owner, or another vendor.)
For example, General Liability may cover your financial responsibility when you…
- Accidentally damage a venue owner's property.
- Cause physical harm to a customer.
- Infringe on copyrighted material or brands.
- Damage someone's reputation through libel or slander.
General Liability is a pretty handy policy for crafters and artisans. It can protect you when these events happen at your primary business location, such as your home. Its protection also travels with you to craft fairs and other venues. It's pretty affordable, too – policies typically cost around $35 a month on average.
For example, let's say you sell candles at the local farmers' market, and a customer drops one. The glass shatters, cutting the customer. If they sue you to cover their medical expenses, your General Liability policy should be able to cover the costs.
Note: At this time, Insureon can't insure candle makers, but we can insure candle sellers.
Business Owner's Policy
A Business Owner's Policy (BOP) is another popular policy for craft makers and other home-based artisans, and it's usually offered at a pretty affordable rate. This policy bundles General Liability Insurance and Commercial Property Insurance to give you basic liability protection (as we talked about above) and coverage for your craft business equipment and supplies.
For example, if a deliveryman slips and falls while dropping off a shipment of yarn, the General Liability portion of your BOP may cover the cost of his medical bills. (Yes, you can be responsible for those costs.) If a fire at your home wipes out your knitting supplies and inventory, the Commercial Property portion of a BOP can help replace the supplies and reimburse you for damaged goods.
Note: Even if a third-party's accident or a fire takes place in your home, don't count on homeowner's or renter's insurance to help out. These policies typically exclude coverage for business-related activity and property. Without General Liability or Commercial Property Insurance, you may get stuck with the bill for the mailman's injuries and your damaged inventory.
Product Liability Insurance
If you sell crafts on your own website or a site like Etsy, you may want to purchase Product Liability Insurance. This coverage can help out when you sell a product that injures someone or makes them sick. It can also pay for damage to property that your malfunctioning product caused.
You can usually add Product Liability coverage to your General Liability policy, although it may significantly increase the price. Not every crafter necessarily needs the extra protection Product Liability Insurance provides, but it may come in handy if you sell…
- Food items, like salsa, whoopie pies, goat cheese, etc.
- Handmade makeup and beauty products.
- Items with sharp or jagged edges, like collectible katana swords modeled after the one wielded by Michonne in The Walking Dead.
- Toys, clothes, or other personal items for babies or young children.
If you're concerned one of the items you make and sell could harm someone, a Product Liability policy is a smart way to protect yourself and your business against a potentially expensive lawsuit.