You can sell without license/insurance yes, the question is whether it is legal or not to do so? I have seen a lot of lovely things on etsy that technically would not be legal. Does that mean someone will go after you? I don't know. I would check you state gov website to see what the requirements are in your state, then go to county and city. Sometimes state requires one thing, but your city might be stricter and you would need an "addition to" in order to be legal. You might even look into an LLC business which gives some protection regarding coming after your home assets versus your business assets. Where I live there is strict laws regarding packaging, mixing, and making homemade soaps, candles, creams, lotions, etc. It is better to be safe and know what you need than to depend on others word of mouth. It can take some time to look for all this information up but if you are already worried, as a suggestion I would find researching the information you need in order to alleviate your concerns would be my recommend path. Just because someone else sells it on etsy without proper licenses, etc does it really mean that you want to take that risk? In some areas it might cost you less than 50 dollars to get a proper business license and even an llc if you do all the paperwork yourself. Think of also the creditability to your business that you are adding by doing all the proper paperwork. These are just suggestions of course. Hope I am not rambling.