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How Product Liability Insurance Connects With Online Selling

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Many business owners turn to Amazon and other ecommerce websties to sell their products and it’s easy to see why. With more than 310 million active customer accounts, Amazon gives sellers the opportunity to get their products in front of more people than other online sellers.

Before you get too excited about expanding your online marketing efforts to Amazon, you’re going to need to protect your business with Product Liability Insurance and we’re here to tell you why.

Let’s get started.

A shopper selects a product at the grocery store.


Here are some examples:

Design Defect: Products are designed with specific purposes in mind, such as safety and are meant to help the user. This claim arises out of allegations that the claimant purchased a root touch up bottle, when the product would not stop spraying causing her to go into respiratory distress.

Manufacturing Defect: You sell bikes and have a contract with a manufacturing plant. One customer purchases a bike from you and the tires fall apart during their bike ride. Upon further investigation, you find out the manufacturer used the wrong tire material and were not able to hold against wear/tear.

Marketing Defect: You sell protein bars and the wrapper is missing important information. It does not specify that it contains peanuts and a customer experiences an allergic reaction.

You can always set up a quality assurance review for your product line and attempt to decrease the risk of accidents. Unfortunately, implementing the most thorough safety measures may not be enough and it only takes one accident to lead to a legal battle.


Yes! Every business owner who is within the supply chain line, such as manufacturing, distributing, or selling should consider carrying coverage. Learn about it below.

Designed To Protect Your Endeavor
Insurance is designed to protect your business and cover your assets. There is always the chance of facing a third-party claim from your product and that can lead to a lawsuit.

The thought of possibly facing a lawsuit is scary and can strain many business owners from a financial aspect. Lawyers can charge $255 to $520 per hour.

May Meet Contract Requirements
Coverage is also needed to fulfill contractual requirements for e-commerce sites, such as Amazon.

Amazon wants its sellers to have coverage and to name them as an additional insured. By insuring your business, you have the opportunity to expand and potentially create additional revenue streams through online platforms.

Like we mentioned before, Amazon has millions of customers and the connection gives you the opportunity to increase your customer base. Be prepared with coverage and push your business forward!


People turn to Amazon for its intuitive online shopping experience, impressive product offerings, and fast delivery (to name a few). You probably have seen Amazon’s branded delivery trucks around town or a friendly Amazon employee delivering packages in your neighborhood. It seems like Amazon is working around the clock for its millions of customers. Take the chance to align your business with an industry giant and expand your efforts with online selling.

Insurance Canopy will be here to provide for your Product Liability Insurance and makes it super easy to get insured.

All you need to do is fill out our online application and one of our licensed insurance agents will get in touch with you. They’ll be able to build a policy that is fit for your needs and guide you through the process. Our team has over a decade of placing coverage with online retailers, such as Amazon and brick-and-mortar stores.

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Product Liability for Online Sellers

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Product Liability Insurance For Online Sellers