Seller insurance requirements
Do you need insurance to sell on Etsy?
No. Etsy does not require sellers to carry liability insurance to open or run a shop. But Etsy places responsibility for your products squarely on you, so if a candle, cosmetic, jewelry, or kids' item you sold causes injury or damage, the claim is yours. Coverage is strongly recommended for physical goods, and wholesale buyers often ask for a Certificate of Insurance.
42%
average savings
$26
starting monthly
Same day
marketplace-ready COI
The requirement
Etsy at a glance.
What Etsy does and does not require, and what your buyers may ask for even when the platform is silent. Confirm against the current seller agreement before you rely on it.
Insurance required?
Not mandated by platform
When it applies
Not set by Etsy. Driven by your product risk and by buyers or stockists who request a COI.
Minimum limits
None set by Etsy; $1,000,000 per occurrence is a common baseline for handmade and physical goods.
Additional insured
None required by Etsy; add a wholesale buyer or event venue when they ask.
Carrier rating
Your choice; pick a reputable insurer.
Deductible cap
Not applicable.
COI deadline
Only when a buyer, stockist, market, or venue requests one.
Named insured
Your seller business or legal name.
When you actually need it
What triggers a coverage request.
The policy pieces that matter for Etsy sellers are product liability, general liability (for markets/events). These are the moments that create the need in practice.
01
You sell candles, cosmetics, skincare, soap, jewelry, or children's products
02
A wholesale buyer or boutique asks for a Certificate of Insurance
03
You sell at craft fairs, pop-ups, or markets that require proof of coverage
04
You expand from Etsy onto Amazon, Shopify, or your own site
The exposure
What happens if you skip it.
Because Etsy does not stand behind your products, an injury or property-damage claim from something you made or sold lands on you directly. Without coverage, legal defense and any settlement come out of your own pocket.
By the numbers
Why the coverage is worth it.
Etsy keeps growing, and so does product-liability exposure. A single defective-product claim can cost more than years of premium. These are the numbers behind the requirement.
5.6M
active Etsy sellers reaching roughly 90 million buyers, most of them small handmade businesses personally liable for what they sell
Etsy 2025 Annual Report (SEC 10-K)$10K–$500K
typical pre-trial product-liability settlement range, with jury verdicts running into the millions
Insurance Information Institute — product liability facts~67%
of product-liability cases end in a settlement paid to the plaintiff
Insurance Information Institute — product liability facts48%
of U.S. commercial tort costs are carried by small businesses — about $160 billion a year
U.S. Institute for Legal ReformHow Assureful helps
A Etsy-ready policy, priced on real sales.
Assureful connects to your store, prices product liability from your real monthly sales, and issues a marketplace-ready Certificate of Insurance with the required additional-insured wording, usually the same day.
Start a free quoteFree quote
See your Etsy price in minutes.
No calculator gymnastics. Enter your email, connect your store, and get product liability insurance priced on your real sales, with a marketplace-ready Certificate of Insurance the moment Etsy or a buyer asks for one.
- Starts at $26/mo, about 42% less than comparable A-rated insurers
- Same-day COI with the right additional-insured wording
- No long forms and no annual-forecast guesswork
From $26/mo
Pay-as-you-sell insurance
- A-rated underwriters
- 42% less than comparable A-rated insurers (avg)
- Quote in 2 minutes
- No annual forecasts
- Cancel anytime
No obligation. Cancel anytime.
Questions
Etsy seller insurance FAQ.
Do I need insurance to sell on Etsy?+
Etsy does not require it to open a shop, but it does not cover your products either. For physical goods like candles, cosmetics, jewelry, and kids' items, product liability insurance is strongly recommended because any injury or damage claim is your responsibility.
Does Etsy provide any seller liability coverage?+
No. Etsy's policies make sellers responsible for the safety and legality of what they sell. There is no marketplace product liability policy protecting you, so you need your own if you want protection.
Why would an Etsy seller need a Certificate of Insurance?+
Wholesale buyers, boutiques, craft fairs, and markets frequently ask for a Certificate of Insurance, sometimes naming them as additional insured, before they will stock your products or let you sell at their event.
Other marketplaces
Requirements on the platforms you sell next.
Sources
Where these requirements come from.
Requirements as documented as of 2026-07. Marketplace terms change, so confirm against Etsy's current seller agreement before you rely on this page.
Start now
Get Etsy-ready coverage in 2026.
Connect your store, answer a few questions, and get a marketplace-ready Certificate of Insurance with the additional-insured wording buyers ask for.
Start a free quote