What happens if
The situations sellers worry about, answered
A customer injury, a lawsuit, a recall, a suspension, or selling without cover. Here is exactly what happens in each case, and the steps to take.
What happens if a customer is injured by my product?
If a product you sold injures a customer, you can face a product-liability claim for their medical costs, losses, and legal action, even if you did not manufacture it. Product liability insurance pays the defense costs and any settlement or judgment up to your limits. Without it, those costs come out of your business.
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What happens if a customer sues me over a product?
If a customer sues over a product, you face legal defense costs plus any settlement or judgment, and defense alone can run into tens of thousands of dollars even if you win. Product liability insurance provides that legal defense and pays covered settlements up to your limits, so a lawsuit does not have to threaten the business.
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What happens if a product I sell is recalled?
A recall can mean pulling stock, notifying customers, and facing injury claims from products already sold. Standard product liability covers injury and damage claims tied to the product, but the direct costs of the recall itself (retrieval, notification, replacement) usually need separate product-recall coverage. Check both before a recall happens.
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What happens if Amazon suspends my account?
An Amazon suspension freezes your listings and payouts, cutting off income while you work to reinstate the account. Product liability does not cover lost income from a suspension, but Seller Defender is built for it: it replaces revenue you lose while a suspended Amazon account is reinstated, turning a worst case into a recoverable event.
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What happens if I sell without insurance?
Selling without product liability means any injury or damage claim from your products is yours to defend and pay, and defense alone can exceed tens of thousands of dollars. You may also fail marketplace requirements: Amazon and Walmart can restrict selling or withhold payments if you cannot provide a Certificate of Insurance.
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What happens if a buyer requests a Certificate of Insurance?
When a marketplace, retailer, or wholesale buyer requests a Certificate of Insurance, they want proof you carry the required coverage, often naming them as additional insured, before they will work with you. If you have a compliant policy you can provide it quickly; if not, the order or account can stall until you do.
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Questions
FAQ.
Am I liable if a product I sold injures someone?+
Potentially yes, even if you did not make it, because sellers are part of the chain of distribution. Product liability insurance covers legal defense and covered settlements for product-injury claims.
Does insurance cover an Amazon suspension?+
Product liability does not cover lost income from a suspension. Seller Defender is built for that, replacing revenue you lose while a suspended Amazon account is reinstated.
Be ready before it happens.
Product and general liability for eCommerce sellers, priced on real sales, with a marketplace-ready COI. Starts at $26/mo.
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