Though it may not be something that you have considered as a craft artist, general liability insurance is an incredibly valuable asset. While a company will likely have some resources at its disposal should a legal situation arise, for an individual there is little more than your savings account standing between you and an insurance claim.
This insurance covers you for two things: 1) damage to a location and 2) injury to an uninvolved bystander or a visitor to your studio. It does not cover injury to your employees or your volunteers, or damage to your company property.
Some possible scenarios:
- You are showing some work at your home studio and a potential buyer slips and falls while looking at the pieces. They then sue you for medical expenses.
- You accidentally knock a hole in the wall of the venue hosting a craft show. The venue requires you to pay for the damages.
When do you actually need it? Most locations will not include you in their liability insurance coverage: instead, they will require that you show a certificate of insurance with them listed as additional insured as proof of your own coverage. In addition, most homeowners' policies do not include coverage for business-related activities conducted in your home. Even if no one is currently requesting that you carry this insurance, it is an incredibly valuable thing to have: spending $500 on a policy now is much better than a $500,000 claim in the future. If you do have a home studio or conduct business out of your home, it is also worth checking in with your insurance agent to determine whether or not additional coverage is needed. Again, one phone call is much easier to handle than a lawsuit!
Since this is a solo operation, I don't have anyone I pay but I do shamelessly ask friends to help me pack my work before each art fair I attend. Done under duress or not, that's still considered volunteering. Do them a favor. Volunteer Accident
Luckily I have enough work that I can actually pay my assistants. Nice job! Workers' Compensation