Creating one-of-a-kind art is your passion. And once you step into selling your work, you open your small business up to thrills, both good and bad. There’s the joy of seeing a customer light up after finding “the one” and the risk of your operations causing accidental injury.
If you’re eyeing your finished pieces and seeing dollar signs, you may wonder, Do I need insurance to sell handmade crafts? The answer is yes!
Let’s explore what insurance you need as an entrepreneurial creative and why these coverages are essential to safeguarding your business.
Do I Need Business Insurance for Artists?
Every artist, crafter, or maker who sells their work needs business liability insurance.
When you create in your studio alone, the only person who could be affected by your work is you. However, once your business starts interacting with the public through sales, there’s a new layer of risk — customers can be injured or their property damaged.
Artist insurance protects you when those what-ifs become very real, very expensive claims.
Just like a single misplaced brush stroke can ruin a masterpiece, one claim can derail your business and finances.
Here are some common scenarios that demonstrate why artists and crafters need insurance:
- A customer slips and falls at your booth at a craft fair
- A customer alleges your product caused physical harm after purchase
- Theft of your inventory from your vehicle while you travel from your studio to an event
- A workshop attendee claims your instruction did not meet their expectations
- A cyber attack on your business compromises all your customers’ credit card info
Ultimately, the biggest reason you need insurance is to protect your business financially — so you can keep creating!
Pro Tip:
Business Insurance for Artists & Crafters: Coverage Considerations
Your artist toolkit contains various mediums — crafters liability insurance is similar in that there are multiple coverage types, each designed for a specific purpose. Imagine them as protective finishes for the different exposures (things that could go wrong) you face as a business owner.
Here are the most essential coverages creatives like you need.
General Liability Insurance
General liability insurance covers third-party claims of bodily injury or property damage related to your business. It’s the most general of the insurance types — hence the name!
Think of this coverage as a blanket of protection for your business whenever customers or passersby come into contact with your operations, such as your vendor booth or studio.
Say a child trips on an extension cord at your booth and gets hurt. If their parent decides to take legal action against you, this coverage could pay to defend your business.
One of the most common claims artists face is third-party property damage due to unexpected weather! Imagine a gust of wind blows your tent into another vendor and destroys their products. You can’t predict the forecast, but you can stay prepared with general liability insurance.
Why you need it: You never know when a customer could slip and fall at your booth or studio — it’s vital to protect your business whenever you open a physical shop.
Product Liability Insurance
Have you ever wondered what would happen if your handmade mosaic accidentally injured a customer’s pet or your intricate jewelry piece caused an allergic reaction on a customer’s skin? It’s a nightmare situation for any artist, especially if a customer sues for damages.
Product liability insurance is designed for these kinds of claims — if your product causes harm, whether physical injury or property damage, to someone after the sale.
Getting coverage for your products through your artisan insurance policy gives you peace of mind that your business is protected even after your work goes home with a customer.
Why you need it: Once your product leaves the register, you’re at risk of it causing harm. This coverage is especially important for fragile or wearable pieces in case they accidentally hurt a customer or damage their property.
Theft & Damage Coverage
Let’s switch gears and focus on your tools, supplies, and inventory. Valuable stuff, right? You spend hours creating each piece to perfection, and you’ve amassed a collection of business essentials that help you get the work done. If something happens to these items, you may have to put business on hold.
Theft and damage coverage, also known as inland marine coverage, covers your movable business property in case it is stolen or damaged.
Unlike liability coverage, which protects against mishaps that happen to others, this coverage is meant for you. It protects you from paying out of pocket (like $10,000 because of an electric scooter crash!) to repair or replace your tools and supplies.
Why you need it: Transporting your supplies and inventory to events or between locations puts you at risk of loss, which can result in lost business and sales.
Workshop & Class Coverage
Workshop and class coverage, more commonly known as professional liability insurance, protects your business against claims of negligence, mistakes, or failure to deliver. It’s meant to safeguard your actions or instruction as a professional artist or crafter in case a client is dissatisfied.
Imagine you hold a pottery workshop, and one of the attendees says the experience was simply not worth the price they paid. Or, say you complete a commissioned piece, but your client claims you didn’t follow instructions and demands a refund. Workshop and class coverage could pay to make things right in these instances.
Why you need it: You know just how subjective the art world is — and claims against your professional services, whether real or perceived, can take a devastating financial toll on your business.
Data Breach Insurance
Cyber attacks can happen to anyone, and if you fall victim to one, you’re at risk of having your entire customer database compromised. That means stolen credit card numbers and upset customers — with your business financially responsible for the loss.
Everything is online now, which is why data breach (cyber liability) insurance is crucial to protecting your business operations, particularly how you accept payments and store customer information. This coverage can notify customers in case of an attack, plus can pay for restoration, so you’re not left alone with the bill.
In 2024, 60% of small businesses cited cyber security threats as a top concern, with nearly three-fourths of respondents saying they feel prepared to handle such a situation. Getting the proper coverage helps you stay proactive, like other savvy small business owners.
Why you need it: With so much sensitive customer information at stake, it’s critical to protect your business against claims of cyber attacks.
Event Insurance
Whenever you hear “event insurance,” this typically refers to general liability insurance for a specific event. If you’re looking to attend a farmers market, art festival, or gallery show as a vendor, this coverage is often required before event organizers consider your application.
This short-term event insurance is a common industry requirement to keep everyone — the planners, the customers, and you — safe. It also makes it easier for organizers to work with your business because they know that if something goes wrong, your event policy can kick in to cover the costs.
While event insurance gets your booth onto the grounds, it is the bare minimum in protection you can have for your business. It only covers third-party accidents while you’re attending the event. That’s why it’s highly recommended that artists obtain robust, year-round coverage for their business, products, and more to cover them from all kinds of claims.
Why you need it: Simply put, if you want to attend events as an art vendor, you must have insurance to meet application requirements.
Pro Tip:
Looking for the best insurance for your craft business? ACT offers affordable coverage with two policy options, ACT Pro and ACT Go, to keep up with your creativity. Get peace of mind to grow your business starting at just $24.25/month!
More Coverage Types Artists & Crafters Need
These coverage options are included with your general liability insurance:
- Coverage for damage to premises rented to you: Pays for accidental damage your business causes in a space you rent (for example, if your artwork damages a wall at an exhibition hall while you’re attending as a vendor)
- Medical expenses limit: Pays for third-party medical bills for injuries related to your business, even if you’re not at fault
You should also know about:
- Additional insureds: An addition (endorsement) to your policy that extends your coverage to a third party, usually an event organizer or venue, so that they’re protected in case they’re named in a lawsuit related to your business
Ready to Get Covered?
FAQs About Insurance Needs for Artists & Crafters
Do I Need Business Insurance to Sell Handmade Crafts?
What’s the Best Insurance for Crafters?
The best insurance for crafters is a comprehensive liability policy that includes general and product liability insurance, such as the ACT Pro policy. This policy protects your business from third-party claims, like customers getting hurt at your booth or from your products. It also includes the option to add on coverage for your workshops, tools and inventory, and more!
Is Artisan Business Insurance Worth It?
Yes! Artisan business insurance is a smart investment that protects your work and finances from unexpected claims or accidents. Whether you’re selling at markets or shipping handmade goods, even one incident can cost far more than the price of a policy, making it absolutely worth it in ensuring the longevity of your business.
