Etsy COI Requirements 2026
What Etsy Requires on Your COI
Three things must be exact: the certificate holder, the limits, and the additional insured language. Miss any one and the COI gets rejected.
Certificate Holder
(Etsy itself does not require AI status)
Coverage protects YOU as the seller
Minimum Limits
| Coverage Line | Required Minimum |
|---|---|
| CGL — Each Occurrence (recommended) | $1,000,000 |
| CGL — General Aggregate (recommended) | $2,000,000 |
| Products / Completed Operations | $2,000,000 |
| Personal & Advertising Injury | $1,000,000 |
| Damage to Rented Premises | $300,000 |
| Cyber Liability (recommended) | $1,000,000 |
Required Additional Insured Language
Sample COI for Etsy
How Much Does Etsy-Compliant Insurance Cost?
Etsy seller insurance starts at $300 to $1,200 per year for $1M / $2M coverage from carriers like Insurance Canopy, ACT, or Veracity. Premium scales with revenue, product category, and claim history. Handmade cosmetics, food, and ingestible products run higher due to product liability exposure.
Why Etsy Rejects COIs
Etsy COI FAQ
Does Etsy require sellers to carry insurance?
No. Etsy does not require sellers to carry insurance to operate on the platform. However, Etsy's seller policy makes you personally liable for any claim related to your products — Etsy assumes no responsibility for product safety or performance.
Why should Etsy sellers carry insurance anyway?
Even though Etsy does not require it, you are personally liable for any product-related lawsuit. A single claim — defective handmade cosmetic, food product, candle fire, child injury from a toy — can be financially devastating. Annual premiums start at $300 to $1,200 for $1M / $2M coverage. Cost is small relative to a single claim.
What categories on Etsy most need insurance?
Handmade cosmetics. Candles. Soaps. Food products. Bath & body items. Pet products (especially treats / chews). Children's products. Electronics. Wedding goods (especially edible). Each of these carries elevated product liability exposure.
Does my homeowners or hobbyist policy cover my Etsy sales?
Almost never. Homeowners policies explicitly exclude business activity. Hobbyist or "occasional crafter" coverage is not real for sellers generating revenue. You need a commercial general liability policy that specifically lists Etsy / ecommerce activity.
Will I need a COI if I expand to wholesale or major retailers?
Yes. The moment you sell wholesale or partner with major retailers (Whole Foods, Target, even local boutiques), they will require proof of insurance with them named as additional insureds. Building coverage early makes the expansion smooth.
Does Etsy seller insurance cover international shipping?
Most US-issued policies have a coverage territory limited to North America. If you ship internationally, verify your policy includes worldwide coverage territory and responds to claims filed in foreign jurisdictions.
How much does Etsy seller insurance cost?
$300 to $1,200 per year for $1M / $2M CGL with product liability for typical Etsy sellers. Specialty carriers like Insurance Canopy, ACT, and Veracity offer dedicated handmade and Etsy seller policies.
Should I get Cyber Liability for my Etsy shop?
If you store customer data on your own systems (separate site, mailing list, custom checkout), yes. Etsy itself handles platform-level data security, but personalization, custom orders, and your own website expose you to data breach liability.
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