Freelance crafters pour their creativity into handmade products, whether it’s jewelry, home décor, clothing, or custom artwork. Selling on platforms like Etsy, at craft fairs, or through your own website is an exciting way to grow your business. But what happens if a customer gets injured by one of your products, your inventory is damaged, or a package goes missing in transit?

That’s where business insurance comes in.

As a freelance crafter, you face unique risks that could lead to unexpected financial setbacks. From product liability claims to lost or stolen inventory, the right business insurance can safeguard your craft business and give you peace of mind.

Common Risks Freelance Crafters Face

Even if you run a small, home-based crafting business, accidents and unforeseen events can happen. Here are some of the biggest risks you should consider:

✅ Product Liability Claims – If a customer has an allergic reaction to a handmade lotion, a piece of jewelry breaks and causes an injury, or a child chokes on a small craft item, you could be held legally responsible.

✅ Damaged or Lost Inventory – Whether you store materials at home or transport products to craft fairs, fires, floods, or theft can lead to costly inventory losses.

✅ Shipping & Delivery Issues – If a customer never receives their order or claims it arrived damaged, you may be on the hook for replacement costs.

✅ Craft Fair & Market Liabilities – Selling at in-person events comes with risks like customer slip-and-fall accidents, tent collapses, or damaging a venue’s property.

✅ Cybersecurity Threats – If you accept payments online, store customer data, or use digital marketplaces, you’re at risk for hacking and fraud.

✅ Intellectual Property Issues – If another seller claims your design is too similar to theirs, you could face a copyright or trademark dispute.

Essential Insurance Policies for Freelance Crafters

To protect yourself and your growing business, consider these must-have insurance policies:

🔹 General Liability Insurance – Covers customer injuries or property damage caused by your business, such as someone getting hurt at your craft booth.

🔹 Product Liability Insurance – Protects against lawsuits if a customer claims your product caused harm, like an allergic reaction or injury.

🔹 Inland Marine Insurance – Covers products and materials while in transit, protecting against theft, loss, or damage while shipping or traveling to markets.

🔹 Commercial Property Insurance – If you store inventory, equipment, or crafting supplies at home or in a rented space, this coverage protects against fire, water damage, and theft.

🔹 Cyber Liability Insurance – If you sell online and experience a data breach, this insurance helps cover recovery costs and legal fees.

🔹 Event Insurance – If you attend craft fairs or sell at pop-up markets, this protects against liabilities like vendor booth accidents or event cancellations.

🔹 Business Interruption Insurance – If an unexpected disaster shuts down your operations, this coverage helps recover lost income.

Why Freelance Crafters Need Insurance

Many freelance crafters think insurance isn’t necessary—but the reality is, a single customer lawsuit, lost shipment, or event mishap could lead to financial trouble.

✔ Marketplaces & Craft Fairs May Require It – Some platforms and in-person markets require vendors to carry liability insurance.

✔ Accidents Happen – Even small products can lead to unexpected lawsuits, such as toxic material claims, allergic reactions, or choking hazards.

✔ Protect Your Hard Work – Lost inventory or business interruptions can set back months of effort.

✔ Peace of Mind – The right coverage lets you focus on crafting and selling—without worrying about unexpected risks.

Final Thoughts: Don’t Let an Accident Derail Your Craft Business

Whether you’re a full-time maker or a weekend craft seller, protecting your business with the right insurance coverage is a smart investment. From product liability to craft fair protection, Bunker offers tailored business insurance solutions for creative entrepreneurs.

Get a free quote today and keep your handmade business protected! If you’re interested in learning more please visit buildbunker.com or contact us at support@buildbunker.com!