Insurance for Toy Makers in Australia

If you’ve ever thought about selling your crochet (knitted or sewn) toys, it can be a minefield trying to find information on safety regulations and insurance requirements in Australia.

While Australia doesn’t have the same stringent testing requirements as the UK, there are still applicable laws and regulations that you need to be aware of.

There are also 2 types of insurance that you should consider before you start selling: Public Liability and Product Liability.

Market sellers will be familiar with Public Liability Insurance.

These policies cover “you and your business in the event a customer, supplier or a member of the public brings a claim against you due to them being injured or sustaining property damage as a result of your negligent business activities” (BizCover). Think: slips, trips, and falls. 

Most markets in Australia require sellers to have a current Public Liability policy in order to attend. There are several insurers who offer Public Liability for market stalls in Australia, including AAMI and AUZI.

Unfortunately, these policies may not cover you for Products Liability, which is what most amigurumi makers actually want to insure. If they do offer Products Liability, I haven’t seen one that covers toys or garments (Auzi, for example, excludes both).

Update Feb 2026: It’s my understanding that AAMI are no longer offering Public Liability for toy sellers. 

Product Liability Insurance covers you for potential claims that may arise from property or personal damage caused by your products.

For example, a plastic safety eye comes loose from a toy you made, and a child chokes on it.

I think this is every toy-maker’s worst nightmare. Even the thought is enough to make you feel queasy!

The issue with Product Liability Insurance is that it’s expensive and difficult to get coverage for amigurumi. Most insurers won’t even quote for it. I even had one crafter tell me that it was IMPOSSIBLE to get cover in Australia (she had spent weeks calling insurers and was quoted $10,000 for cover).

My husband and I are insurance brokers (and I love a challenge)! Brokers have access to markets and policies that the public doesn’t. We found a few insurers and now offer quotes over at AMC Insurance. The cost of a policy will vary, but expect to pay between $1,100 and $1,300 for a combined Products and Public Liability policy.

It’s important to understand that every insurance policy has limitations and exclusions, so you need to read the quote carefully.

While amigurumi makers in Australia don’t have to adhere to safety testing like in the UK, it’s important to understand the safety regulations. 

Safety regulations relating to toy manufacturing are: 

• The AS/NZS ISO 8124 series (mechanical safety, flammability, and chemical testing),
• The Consumer Goods (Toys for Children up to and including 36 months of age) Safety Standard 2023, and 
• The general safety provisions under Australian Consumer Law (ACL).

Any products you use need to adhere to these Australian standards. Typically, goods that you buy in Australia should be safe, but if you’re importing cheap products from China (e.g. via AliExpress and Temu), they may not meet Australian Standards.

If you’re making toys for kids under 36 months, be very careful to check the requirements for materials linked below.

So, what are some ways that you can limit your liability when selling your crocheted toys?

1. Buy from Australian suppliers, and ask if they can provide safety testing reports for their products.
2. Limit your use of cheap supplies imported from overseas. It’s unlikely that they will be able to confirm that they meet Australian safety standards. 
3. Tag items with safety eyes, buttons, or any pieces that could detach as ‘Not safe for children under 3 years of age’.
4. If you are selling items for kids under 36 months, ensure that you are adhering to the requirements under the 2023 Safety Standards.

If you aren’t selling items for children (i.e. you make amigurumi for adults), it’s prudent to include a tag or note on your online listing that the item is not a toy and is not intended to be played with. I always tag my items with safety eyes regardless of whether I’m marketing to kids or adults.

• Consumer Goods (Toys for Children up to and including 36 Months of Age) Safety Standard 2023
• Explanatory Statement for the above
• AS/NZS ISO 8124.1:2019