3 Things to Know About Insurance and the Etsy Biz
For the longest time, you have thought about selling your product online. So, you have done all the research and have found that Etsy is your choice. You take the time to set up an account and meticulously load and profile your merchandise. Now it is time to sit back and watch the product sell. Somewhere along the way, you may have also thought about insuring your new business. There are many types and levels of insurance you can get, but here are a few things you will want to know before deciding.
Does Etsy require you to have insurance?
The easy answer to this question is no. You do not have to buy insurance because it is a requirement. But, you probably should still protect yourself from that unhappy customer that is just waiting to sue everyone in the world. With Etsy you will be shipping things around the world and domestically. There is always the chance that the shipment can be lost or damaged while in transit.
Shipping insurance can help you if the product is lost or damaged. You can choose to insure your product for up to $5,000, which will include the value of contents and what it cost to ship the product. There is usually a $100 amount that comes automatically when you ship a package. So, any value beyond that amount will have to be increased. International shipments and domestic packages have different rates you can choose from.
If you ever have to file a claim, there are certain things that must happen first. A lost package has a timeframe that you must wait before you can file a claim. This gives the shipment enough time to clear the system. Stolen or damaged items have a window of 120 days that you have to file a claim. Keep your tracking number handy as this will be the way you file your claim.
What are the options for Etsy shop insurance policy types?
There are different coverage types that you can choose from to protect your business. Consider the following:
- General liability: Covers your products, property damage and advertising injuries.
- Professional liability: Protects you if you make a mistake rendering your services. Also known as errors and omissions insurance.
- Cyber liability: Protects you against a data breach or stolen personal information.
Having the right kind of insurance really is the best way to protect yourself from a financial loss. If you are just starting out, then there is a chance that you do not have money lying around if there is a claim against you.
What happens if you don't get insurance?
Nothing, but it's a huge risk and one issue can cause a huge mess! You can spend months and years trying to satisfy claims against you. It can even shut down your business if it is severe enough.
There are a lot of different insurance matters to think through when you own a company. If you have any questions or would like to know more about insurance for your new Etsy store, then please call us today or visit us on the web. We can help you get set to flourish with your new small business.