Whether you handcraft ceramics or paint portraits, you create products designed to spark joy. Sometimes, though, your creations can cause damage — the exact opposite of what you hoped for! If you’ve started selling products online or in person, getting product liability insurance should be your next to-do.
But where to start? Our small business guide to product liability insurance answers all your questions, including how fast you can purchase coverage and start selling with peace of mind. (Spoiler alert: With ACT Insurance, just about 7 minutes!)
What Is Art and Craft Product Liability Insurance?
Artists’ product liability insurance is a type of artist insurance coverage that pays for third-party bodily injury or property damage claims caused by your products after sale.
Essentially, it protects you from paying out of pocket to make things right with customers if your arts or crafts hurt them or damage their property.
Product Liability Coverage Examples
Your creativity? Endless. So, too, are the many ways your products can spur a customer to take legal action against you.
Here are some examples of claims that craft product liability insurance can cover:
- A customer suffers an allergic reaction to one of the materials in your jewelry
- A painted decor piece bleeds and permanently stains a customer’s expensive leather sofa
- Your glass sculpture breaks in transit, slicing a customer’s hand as they open your package upon delivery
- A customer’s pet chokes after swallowing a loose decoration that detaches from one of your dog bandana products
Despite the great care you put into creating your unique pieces, accidents can happen once your products are out of your hands. These claims can be due to defective design, a mishap during creation, or inadequate labeling.
There’s no way to completely eliminate the risk of injuries and property damage after the sale, which is where product liability insurance steps in — to cover all those stressful what-ifs.
Who Needs Product Liability Coverage?
Short answer: If you create and sell handmade products, you need product liability coverage. This includes in-person and online crafts businesses.
Some online marketplaces, like Faire and Amazon, require artists and crafters to carry product liability insurance as a requisite for selling on their platforms. It’s also commonly required by local boutiques before they consider carrying your goods.
Even if you sell through your own website or if it’s not required by the platform(s) you sell on, product liability insurance is essential to protecting your business’ future. A single claim can cost you thousands of dollars and potentially put you out of business!
This coverage is crucial for makers like:
Cost of Product Liability Coverage
In the U.S., the average cost of product liability insurance for small businesses is $1,192 per year as of 2022.
The amount you pay for this coverage can depend on factors such as your annual revenue, the types of products you sell, and the size of your business.
ACT offers affordable product liability insurance through our year-round policy, ACT Pro. Coverage includes general and product liability insurance, plus coverage for your rented space, third-party medical bills, and more, starting from $24.25 a month.
👉The cost of product liability insurance is much, much lower than the cost of footing a customer’s medical bills, defending yourself in court, and paying out for damages if your handmade creations cause an accident.
Shopping for Craft Product Liability Insurance 101
High Coverage Limits
Coverage limits, also known as limits of liability, are the maximum amounts of money an insurance policy will pay while the coverage is active. There are two types you need to know.
- Occurrence limit: How much money is available to you per claim
- Aggregate limit: How much money is available in total for the policy year
Think of the aggregate limit as a bucket of paint that lasts an entire year, and the occurrence limit as a single splash of paint allotted from that bucket for just one canvas.
If your insurance policy pays out for a claim (from the occurrence limit), that depletes the aggregate limit total.
With ACT Pro crafters liability insurance, your coverage limits are $1 million per claim and $2 million for the full policy year, high enough to give you peace of mind that you’re fully protected from costly claims.
Comprehensive List of Covered Products
It’s crucial to check that the insurance policy covers your entire product offering. Some products, like ingestibles or children’s toys, are considered higher risk than others and are often not covered under craft product liability insurance.
With ACT Pro, your business is covered for popular products, including, but not limited to:
- Art prints
- Jewelry
- Home decor
- Clothing
- Accessories
- Glassware
- Pottery
- Handmade cards
- Wood sculptures
- Metal sculptures
- Leather goods
- Pet accessories
As long as:
- Most (80%) of what you sell is handmade or designed by you
- Any pre-made items are transformed into something new and unique
- Pre-made items make up less than 20% of what you sell
See the full list of exclusions.
Additional Coverages Included
Just like you might bundle products into one attractive offering, insurance coverages can be combined, too. This ensures your business is protected from multiple angles.
ACT Pro paints a complete picture of protection by combining:
- Product liability insurance: Also known as products and completed operations coverage, this protection is for damages caused by your products or finished services after the transaction is completed
- General liability insurance: An essential safety net for slip-and-fall injuries or property damage, this coverage is designed for general third-party accidents related to your business
- Personal and advertising injury coverage: Part of your general liability insurance, this protection is for non-physical damages caused by your business, such as libel, slander, or advertising mistakes
- Damage to premises rented coverage: Also part of your general liability insurance, this essential coverage is designed to pay for accidental damage to the space you rent
- Medical expense limit: An essential element of general liability insurance, this fund can pay for a customer’s or passerby’s medical bills, even if you’re business is not at fault
Every masterpiece needs different finishing touches. ACT Pro includes the option to add extra coverages suited to your business:
- Theft and damage coverage: Pays to repair or replace your tools, supplies, and inventory in case of theft or damage
- Data breach protection: Covers damages resulting from a cyber attack on your business (like stolen customer credit card details)
- Workshop and class coverage: Protects your business from claims related to your professional services (such as a client dissatisfied with a commissioned piece of work)
ACT Insurance’s Product Liability Coverage Is Designed for You
ACT’s craft product liability insurance keeps up with your creativity, from new product launch to your customers’ doorsteps and beyond.
Get peace of mind to create and sell your one-of-a-kind products — not on all the risks waiting to happen.
Here’s how ACT Pro supports your arts and crafts business:
- A+ rated protection
- Online checkout and instant proof of insurance
- Combined general and product liability in one policy
- Free additional insureds — add them right from your dashboard
- Coverage follows you and your products wherever you work
- Continuous year-round protection plus option for EZ Renew
- Add-on coverages available for product theft or damage
- Meets most platform insurance requirements
- Fast, flexible, and easy to get covered
- Enhanced seller credibility
Your arts and crafts goods are meant to be shared and enjoyed. Get product liability insurance now to sell your creations confidently.
Common Questions About Artist Product Liability Insurance
Do Artists Need Product Liability Insurance?
There are many reasons why you need product liability insurance; the biggest of these is to financially protect your creative business against claims alleging your products have caused damage.
A single accident can cost your business thousands of dollars and potentially put you out of business. Insurance gives you peace of mind to sell your products, knowing you’re covered against third-party injuries and property damage.
What is the Best Artist Product Liability Insurance?
The best artist product liability insurance:
✔️Covers all your products
✔️Has high coverage limits, such as $1 million per claim
✔️Combines general and product liability coverage
✔️Can be purchased and managed 100% online
ACT Pro checks all these boxes and more. See how our policy takes the spotlight: ACT vs. the competition.
Can I Get Product Liability Insurance Just for One Event?
ACT’s product liability insurance comes standard with our year-round policy, ACT Pro. That means it’s great for keeping your products covered from event to event while you focus on growing your business! You can even choose same-day coverage and get instant proof of insurance to meet event requirements fast.
Is Product Liability Coverage Included in General Liability Insurance for Crafters?
Product liability coverage (for damage caused by your products) and general liability coverage (for mishaps caused by your business operations) are two separate insurance types — both are essential to protecting your arts and crafts business.
ACT Pro combines product and general liability insurance into one simple policy so you can create, sell, and ship your products worry-free.
JoAnne Hammer | Program Manager
JoAnne Hammer is the Program Manager for ACT Insurance. She has held the prestigious Certified Insurance Counselor (CIC) designation since July 2004.
JoAnne understands that starting and operating a business takes a tremendous amount of time, dedication, and financial resources. She believes that insurance is the single best way to protect your investment, business, and personal assets.
JoAnne Hammer is the Program Manager for ACT Insurance. She has held the prestigious Certified Insurance Counselor (CIC) designation since July 2004.
JoAnne understands that starting and operating a business takes a tremendous amount of time, dedication, and financial resources. She believes that insurance is the single best way to protect your investment, business, and personal assets.
