Why You Need Product Liability Insurance For Your Small Arts And Crafts Business

11 May 2016 by Elijah Steward

Do you make things at home and then sell them online? Maybe you make bead necklaces, seashell wreathes, or painted clay jars. No matter what you sell, you can find yourself on the bad end of a product liability lawsuit with no way to protect yourself or your business. Here's why you need product liability insurance.

Because You Are a Manufacturer and You Sell Your Product to the Public

The moment you give somebody something you made, you take on a tremendous amount of liability. At a very basic level you can protect yourself somewhat by placing warnings on the things you make. For example, if there are small parts, you can put a choking hazard warning on it.

When people have a grievance with a product, they seek a solution or recompense from the manufacturer. You may not think of yourself as a manufacturer, but you are. As a manufacturer, you will need some form of protection for the products you manufacture and sell.

Because Your Product Can Have Flaws, Defects, and Inadequate Warnings

No matter how careful you are, there's a chance that you can send out a defective or flawed piece. Large companies hire entire teams for testing quality control on the things they manufacture.

Somebody putting together an arts and crafts piece in their spare time likely won't worry about such things. However, consider the following chain of events:

• You send someone something that's defective or flawed
• It causes some kind of personal harm or property damage
• That person has every right to pursue a judgment against you

That lawsuit will likely come as a complete surprise to you. You will need to obtain a lawyer to advise you, and you will need funds for a court battle. You will likely lose that battle.

And all this can happen because you sold a glass bead bracelet with a loose bead for only a few dollars online.

This entire scenario can also apply to putting inadequate warnings or instructions on a product. Maybe you only create the glass beads but don't string them yourself. You send the beads and string, but don't send instructions on how to properly tie the bracelet together securely.

If someone puts it together the wrong way, and the beads can fall off. Someone can trip and fall on those beads accidently. Or, the beads can become a choking hazard to a child. No matter what happens, you can find yourself liable for the injury sustained by your customer or others.

Because You Want to Protect Yourself and Your Business

Product liability insurance can protect you and your business from all these things. However, there's far more to a business, even a really small one, than product liability. That's why product liability insurance is often included as a part of a larger business insurance package.

While you may think your arts and crafts business doesn't need something as lofty-sounding as business insurance, you should reconsider. Not only are there many affordable packages for smaller businesses, it's something you should consider a necessity if you plan to pursue your business efforts. 

For more information, contact a professional in your area or visit a website like http://www.mattroenkerinsurance.com.

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