Numerous careers could fall under the category of creatives and makers. From content creators (definitely one of the most popular now) to Etsy sellers, the creative and maker community is definitely growing.
But as soon as any creator crosses the threshold from hobby to making sales, they're a business with liability.
Below, we'll explore everything there is to know about liability in business.
Why Liability Applies to Creatives and Makers More Than Anyone
The US creative economy is massive. Currently valued at $127.65 billion and expected to grow at a compound annual growth rate of 22.5% between 2024 and 2028 (Demand Sage). It's the largest creator economy by far. Some of the most common careers include:
Print designers
Content creators
Jewelry makers
Copywriters
Illustration designers
And they operate as full businesses. That said, most didn't enter the market with a business mindset. They started creating because they liked making something, sharing it with the world, and seeing that little PayPal notification or Etsy sale banner pop up. To most, the concept of liability is reserved for big corporations with teams and funding. Except it isn't.
A handmade item isn't exempt from risk just because it was made in a home studio with care and creativity. If anything, handmade goods have more responsibility. And the bigger issue is that if something causes harm, the creator doesn't get to pass it off to a department. They are the department.
Why Liability Applies to Creatives and Makers More Than Anyone
Most creatives sell directly to consumers. There's no standard traditional layer between the product and the buyer. There is no retail chain carrying liability and no distribution partner writing up legal disclaimers.
It doesn’t take a dramatic failure to spark liability. A customer going to a craft fair can trip on a display. A candle can overheat and damage a surface. A wool dye can transfer to fabric or skin. A skincare formula that uses natural oils can still trigger unexpected reactions, and there was no warning on the bottle.
When customers interact directly with creators, the outcome—positive or negative—is on the maker who sold it.
The Common Mistakes Made by Creatives and Makers
The early focus on design and creativity neglects some of the most important considerations. Some of the most common mistakes creatives and makers make include:
Neglecting returns and refund policies
Allergy warnings (although this is probably more common now)
Ingredient disclosure
Product testing standards
Digital usage rights
Those are the considerations, or lack of them, that become legal issues down the line. It's easy for creators to assume that a small customer base keeps risk small. And as we mentioned above, a single product can create an expensive outcome.
Simple General Liability Insurance
It can be as simple as general liability insurance. Well, you creatives also have to avoid needing to use it, but it is an essential and relatively inexpensive fallback. A simple general liability insurance policy can support makers when any issue, such as the following, happens:
A product causes unexpected damage
A disagreement turns into a formal complaint
Property damage
Legal fees & defense costs
Medical payments
Other common business accidents
It’s simply a way to avoid one incident becoming an impossible financial expense. Policies are relatively inexpensive to take out, and creatives can do it all online. General liability is the most well-rounded insurance policy to give coverage for everything creatives and makers should need, but they should also consider the need for the following policies:
Commercial property insurance
Errors and omissions insurance
Workers' compensation insurance (if they hire one employee or more)
Tools and equipment insurance
A creative business is often deeply personal, but it isn't informal. And liability isn’t the end of creativity. It’s what keeps creatives making, selling, shipping, and growing without one unexpected moment taking away the joy that started the entire business in the first place.
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