Business insurance for resellers.
Yes. A reseller buys finished products and sells them on, but still sits in the chain of distribution, so a defective product you resold can put your business on the hook for injury or damage. 'I only resell it' is not a legal defense, which is why product liability insurance matters for resellers.
The exposure
Why resellers carry real risk.
Under strict product liability, every business in the chain of distribution, including resellers and retailers, can be named after a product injury, not just the manufacturer.
Key risks
- product-injury claims for goods you did not make
- no control over manufacturing quality or recalls
- marketplace and wholesale buyers requiring proof of coverage
- mixed catalogs spanning many product categories and risk levels
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.
Traditional carriers price resellers from a single annual revenue figure and broad class codes, missing how a mixed, fast-moving catalog actually behaves.
01
a marketplace requests a Certificate of Insurance
02
a wholesale buyer asks to be named as Additional Insured
03
you add higher-risk categories (ingestibles, electronics, kids' items)
04
monthly sales outgrow an annual-forecast policy
Free quote
Coverage built for how resellers 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
Resellers insurance FAQ.
Do resellers need product liability insurance if they did not make the product?+
Yes. Resellers are part of the chain of distribution, so a product-injury claim can name your business even though you did not manufacture the item. Coverage protects against defense costs and settlements.
Does a marketplace require resellers to have insurance?+
Amazon requires it above $10,000 in monthly sales and Walmart above $100,000 GMV; both apply to resellers, not just brand owners.
Other seller types
Business insurance for online retailers
Read
Business insurance for dropshippers
Read
Business insurance for importers
Read
General information, not insurance advice. Liability context per Insurance Information Institute. Reviewed 2026-07-01.