Business insurance for online retailers.
Yes. An online retailer selling physical products is part of the chain of distribution, so a defective product can create a claim against the store regardless of who made it. Product and general liability insurance is the base coverage, with a Certificate of Insurance available whenever a marketplace or buyer asks.
The exposure
Why online retailers carry real risk.
Whatever the catalog, an online retailer is a seller in the distribution chain and can be named after a product injury alongside, or instead of, the manufacturer.
Key risks
- product-injury claims across a broad catalog
- marketplace insurance thresholds and COI requests
- cyber and customer-data exposure alongside product risk
- seasonal spikes that change exposure quickly
What you need
- Product liability
- General liability
- Certificate of Insurance support
By the numbers
What one claim can cost.
$10K–$500K
typical pre-trial product-liability settlement range, with jury verdicts running into the millions
Insurance Information Institute — product liability facts~67%
of product-liability cases end in a settlement paid to the plaintiff
Insurance Information Institute — product liability facts48%
of U.S. commercial tort costs are carried by small businesses — about $160 billion a year
U.S. Institute for Legal ReformWhen you need it
What triggers coverage.
Generic small-business policies rarely reflect how a multi-category online store's real risk shifts across products and seasons.
01
a marketplace crosses its insurance threshold for your account
02
a wholesale or B2B buyer requests proof of insurance
03
you add higher-risk product categories
04
your revenue outgrows a single annual estimate
Free quote
Coverage built for how online retailers actually sell.
Assureful is built for eCommerce sellers: it connects to your store, prices product liability from your real monthly sales instead of an annual guess, and issues a marketplace-ready Certificate of Insurance with the additional-insured wording buyers ask for.
From $26/mo
Pay-as-you-sell insurance
- A-rated underwriters
- 42% less than comparable A-rated insurers (avg)
- Quote in 2 minutes
- No annual forecasts
- Cancel anytime
No obligation. Cancel anytime.
Questions
Online Retailers insurance FAQ.
What business insurance does an online retailer need?+
Product liability and general liability are the base for anyone selling physical goods, with Certificate of Insurance support for marketplaces and buyers. Retailers holding inventory or data may add property or cyber coverage.
Other seller types
Business insurance for resellers
Read
Business insurance for dropshippers
Read
Business insurance for DTC brands
Read
General information, not insurance advice. Liability context per Insurance Information Institute. Reviewed 2026-07-01.