What is product liability insurance?
Product liability insurance covers third-party claims that a product you sold caused bodily injury or property damage. It pays legal defense, settlements, and judgments up to your limits. For anyone selling physical products online, it is the core coverage, because being in the chain of distribution means a defective product can name your business.
Get a free quoteWhat product liability covers, and what it does not.
Covered
- third-party bodily injury caused by a product you sold
- third-party property damage caused by a product
- legal defense costs for covered product claims
- settlements and judgments up to the policy limit
Not covered
- damage to your own products or inventory
- product recall costs (usually a separate coverage)
- intentional acts or known defects
- professional advice or services
Who needs it
Every seller of physical products, whether you manufacture, private-label, import, or resell them.
Typical cost
Assureful product liability starts at about $26/mo, priced on real sales; traditional annual policies often run $500 to $1,500+ per year.
Where Assureful fits
Coverage priced on your real sales.
This is Assureful's core coverage, priced pay-as-you-sell from your connected store data. Assureful connects to your store, prices product and general liability from actual monthly sales, and issues a marketplace-ready Certificate of Insurance when a platform or buyer asks.
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
Product liability FAQ.
Do I need product liability insurance to sell online?+
If you sell physical products, yes in practice. You are part of the chain of distribution, so a defective product can create a claim against your business, and marketplaces like Amazon and Walmart require the coverage above a sales threshold.
Does product liability cover me if I only resell products?+
Yes. Resellers, dropshippers, and retailers are all in the chain of distribution and can be named after a product injury, even though they did not manufacture the item.
Related coverage
General information, not insurance advice. Source: Insurance Information Institute: product liability. Reviewed 2026-07-01.