Selling digital products on Etsy.

69dude

I'm looking to sell laser cutter/engraver digital plans/instructions only on Etsy (no physical products). This will obviously give me a worldwide marketplace. This is what I envisage happening:

1. Customer will download my digital plans/instructions from Etsy.

2. Customer will load the digital plans in to their own laser cutter/engraver and cut/engraver the material.

3. Customer will construct these cut-out parts themselves (where necessary), to build the model.

My first query is, am I legally liable in any way for parts 2 & 3 above, and if so, what type of insurance will cover me worldwide?

My second query is, if I'm not liable for parts 2 & 3 above, do I need insurance at all for selling digital products if the customer is building the product themselves?

I've tried a few insurance companies, but none have been much help so far. One seemed to say Product/Public liability insurance wouldn't apply as my 'product' was only a digital file.

Thanks in advance. Any advice appreciated.

DullGreyGuy

1) You need to read the terms and conditions of Etsy but would expect the answer to be yes

2) n/a

3) Product/Public Liability potentially could apply as this covers physical damage/injury but digital would more commonly consider Professional Indemnity/Liability. Ultimately however you need to speak to a broker and take their advice such that if their advice is wrong you have comeback on their PI insurance.

Brokers somewhat specialise in types of clients, if you google you'll find some that target at digital businesses/emerging markets and they may be better versed in considering digital products than your standard broker who mainly deal with tradesmen and small shops etc