Why Does My Vendor Require Product Liability Insurance?
As you grow your business, part of your new sales strategy may include
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Whether you sell, ship, or source it, we help protect your e-commerce business at every step.
Ecommerce business insurance is designed to protect retailers and sellers from claims related to their products and online business. It’s a type of small business insurance that helps:
Whether you’re a full-time entrepreneur or a weekend side-hustler, if you sell goods online, insurance helps protect your hard work. The most common sellers we cover include:
Amazon Sellers | Etsy Sellers | eBay Sellers
Shopify Stores | Drop Shippers | White Label Retailers | WooCommerce Stores | Indie Ecommerce Brands | Home-Based Online Seller
Did You Know? Even if your platform doesn’t require insurance yet, you can still be held liable for injuries or damages caused by your products.
Your shop may be digital, but your risks are very real. If a product you sell causes harm, you could be legally responsible, even if you didn’t make it. That’s where product liability protection comes in!
Keep your shop compliant
Our marketplace-approved policies help you easily meet or exceed insurance requirements for sites like Amazon
Protect against lawsuits
Even if you didn’t manufacture the product, you could be held liable for injuries or property damage it causes
Cover losses and liabilities
Lower or eliminate the cost of a claim, like medical bills, legal fees, lost wages, repairs, and more
Guard your customer data
Data breaches and cyberattacks can affect even small online shops, but cyber liability helps cover the fallout
Sell with confidence
From shipping accidents to inventory losses, ecommerce coverage helps keep your business moving forward
Most online sellers pay an average of $116 per month or less for small business ecommerce insurance from Insurance Canopy.
Each policy is tailored specifically to your product and business, so you only pay for the coverages you need. The cost of your ecommerce liability coverage depends on:
Insurance Canopy offers core coverage and customizable add-ons to meet your specific needs! Our insurance for ecommerce businesses includes general liability and product liability insurance, with up to $1 million in coverage per claim and $2 million total per policy year.
Looking for extra protection? Our licensed agents can help you customize your plan with higher limits and add-on coverages tailored to your business model.
Included
General Liability Insurance covers third-party injury or damage claims that are not directly caused by your products, like if someone slips while picking up an order from your home office or at an in-person event. It also helps with legal costs if you’re ever accused of advertising injury, like copyright infringement.
Product Liability Insurance protects you from claims related to the products you sell, even if you didn’t manufacture them. If a customer claims damages caused by something you sold, this coverage helps pay for legal defense, medical bills, and settlements.
Recommended Add-ons
Product Recall Insurance covers the costs of pulling defective, mislabeled, or unsafe products from shelves or online listings.
Cyber Liability Insurance helps cover costs like customer notification, credit monitoring, and reputation repair if your website or sales platform is hacked. This coverage is crucial if you collect customer emails or payment information.
Workers Compensation Insurance covers medical bills and lost wages if a team member is injured while packing orders or handling shipments. In most states, workers comp is legally required if your business has employees besides you (even if they’re part-time).
Inland Marine Insurance protects your inventory and business property while in transit. This coverage is essential if you ship products yourself, store goods in a warehouse, or sell at pop-ups or trade shows.
E&O Insurance covers liability if you offer customization, design services, or product advice that leads to a customer loss. It can be especially useful for sellers who create personalized or made-to-order items.
The Amendment of Coverage Territory endorsement extends your protection to sales or claims outside the U.S. It’s ideal for ecommerce businesses that ship internationally.
The Primary & Non-Contributory endorsement ensures your policy responds first to a covered claim before any other policies. This may be required in some contracts, like with Amazon or shipping fulfillment centers.
A Waiver of Subrogation protects parties like a partner, landlord, supplier, or fulfillment center from being held financially responsible after a claim involving your business. This coverage is often a must-have for B2B agreements.
A 30-Day Cancellation Notice sends a “heads-up” to your platform or another party if your policy is ever canceled. It’s a frequent requirement in marketplace agreements or commercial leases.
Over 135,000+ businesses rely on us to protect their products, platforms, and peace of mind. But what sets us apart? We make getting coverage simple, smart, and (surprisingly) stress-free!
Thank you so much
Steve MonrealI needed a portable policy as a yoga instructor. I found this company in an online search. Called and got details from them, was quite surprised at how affordable... Read More
Jamie CalawayVery easy & quick experience. We got insurance in no time with no hassle. Thank you!
Robert EarnestI am glad I went with them. I needed a last minute policy to cover an event I was doing and they had exactly what I needed at a... Read More
Deloris Pachecogreat little company, with fair pricing, for entertainers who need occasional coverage. however, they have long hold times to speak to an agent, and their customer service left a little something... Read More
Gretje AngellWhat a lovely experience I had with Insurance Canopy! Easy and fast sign up, great policy, matches my needs as a self-employed business owner. Highly recommend!
Masha RusanovNeeded DJ insurance for Memorial Day weekend & was squared away within an hour for 2 events! Highly recommend
Jay SolisVery user friendly platform. Multiple options. Very good pricing. Needed liability insurance in order to secure a very good paying event for my solo tribute show. Was set up within... Read More
Michael RileyWould have 5 starts, but not right now. This is the first time I have ever had to pay for an additional insured ever in 20 year's. They either have... Read More
Anthony BurgessRepresentative Sarah was very helpful. Walked me through every step and not to mention the price even matched the service! Would recommend to any and everyone.
queenkiamVery easy to renew policy
Elyce NissinoffThey can help.you with the right Insurance you need, and the lowest price
Alvaro BaltazarProvides event insurance at a very reasonable price compared to other companies. Easy to purchase and provide proof of insurance.
David FoxAffordable for dance & yoga folk. Thumbs up!
Maia ClaireExtremely affordable event insurance and an easy to work with system and team that will advise you every step of the way!
Ishan Arvineverything is excellent
Radames MartinezI'm a new customer/policy holder. Super easy online application and policy setup. Very competitive rates. Certificate of insurance generated and received (PDF) immediately once method of payment established. Great service... Read More
Matthew TerryFor me, this application process was super efficient and easy to navigate on line. That goes a long way!
Holly MulderAffordable. Thank you.
Ana YoungI have not had any issues over the years with Insurance Canopy, with canceling and renewing, I have found the cost of coverage in line or better then some. I have... Read More
John CorkinsCanopy insurance has covered my DJ business for several years and I am totally satisfied with their services. Thank you DjVic🎧
DjVic Universal SoundsI have them for 3 years this year seems price went up . I have never had to use them for a claim so really couldn’t tell you about that!
Denice LapointeGreat for Event Insurance - most affordable
Gaby NobregaI was feeling overwhelmed with the specifications needed for my insurance coverage. I was offered friendly, quick and clear assistance. Through Canopy and Rey's help I was able to obtain... Read More
ESPIE QUINTEROTLJ's Mobile Mixology, LLC had been insured with Insurance Canopy since it's inception and we have no complaints.
Tenisha J.Knowledgeable, kind, attentive and professional. She helped me to feel comfortable, well taken good care of and get the service possible.
Ed LevittAs a Massage Therapist, I was not aware until a few years ago that I did not have to be part of an Organization to get my liability insurance! I... Read More
Kristie WilliamsThis insurance has helped me secure events with my corporate and local government clients. They have great customer service and are always willing to help.
Tony FelixRepresentative was clear & concise in explaining specifics of the policy. Cost of policy very reasonable.
John BI’m very happy with my purchase of liability insurance for a one-off event. I was even able to edit the policy after it had been issued with the help of... Read More
jay gedeonThank you so much
Steve MonrealVery easy & quick experience. We got insurance in no time with no hassle. Thank you!
Robert EarnestI needed a portable policy as a yoga instructor. I found this company in an online search. Called and got details from them, was quite surprised at how affordable... Read More
Jamie CalawayI am glad I went with them. I needed a last minute policy to cover an event I was doing and they had exactly what I needed at a... Read More
Deloris Pachecogreat little company, with fair pricing, for entertainers who need occasional coverage. however, they have long hold times to speak to an agent, and their customer service left a little something... Read More
Gretje AngellRepresentative Sarah was very helpful. Walked me through every step and not to mention the price even matched the service! Would recommend to any and everyone.
queenkiamWhat a lovely experience I had with Insurance Canopy! Easy and fast sign up, great policy, matches my needs as a self-employed business owner. Highly recommend!
Masha RusanovNeeded DJ insurance for Memorial Day weekend & was squared away within an hour for 2 events! Highly recommend
Jay SolisVery user friendly platform. Multiple options. Very good pricing. Needed liability insurance in order to secure a very good paying event for my solo tribute show. Was set up within... Read More
Michael RileyWould have 5 starts, but not right now. This is the first time I have ever had to pay for an additional insured ever in 20 year's. They either have... Read More
Anthony BurgessYes, you need ecommerce insurance if you sell on Amazon, but not if you sell on Etsy.
Amazon requires liability insurance once you pass a certain sales threshold. Etsy does not, but you’re still on the hook if something goes wrong with a product you sell.
The best ecommerce insurance for a small business is a policy that includes:
Yes, you can be sued even if you didn’t manufacture the product. As the seller, you’re part of the distribution chain and can be held liable for defective or dangerous items, even if you sourced them from someone else.
Shopify does not currently have seller requirements for insurance, but this policy is still designed to protect your business from product-related lawsuits that could shut down your store.
As you grow your business, part of your new sales strategy may include
As an Amazon seller, you are responsible for the safety of any products
Selling on Amazon is no easy task. You have to know all of
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