What is Product Liability Insurance?
Product liability insurance covers claims that a product you sold caused bodily injury or property damage to a third party. It pays legal defense costs, settlements, and judgments up to the policy limit. For eCommerce sellers it is the core coverage, because you remain responsible for your products even when a marketplace lists them.
Why it matters for sellers
If you sell physical products online, product liability is usually the center of your insurance stack. Marketplaces like Amazon require it above a sales threshold, and wholesale buyers ask for proof of it before stocking your goods.
Example
A supplement you sold on Amazon triggers an allergic reaction and the customer sues; product liability covers the defense and any settlement.
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Product liability insurance priced on your real sales, with a marketplace-ready Certificate of Insurance whenever a platform or buyer asks. Starts at $26/mo.
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Pay-as-you-sell insurance
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Questions
Do online sellers need product liability insurance?+
Yes, if you sell physical products. You are liable for injury or damage your products cause even on a marketplace, and Amazon, Walmart, and wholesale buyers often require proof of coverage.
What does product liability insurance not cover?+
It typically excludes damage to your own product, intentional acts, recalls, and product categories the policy specifically excludes. Coverage varies by policy form.
Definition based on Insurance Information Institute and IRMI Glossary of Insurance & Risk Management Terms. Reviewed 2026-07-01. This is general information, not insurance advice.