How much product liability insurance does a small business need?
For most small eCommerce businesses, $1,000,000 per occurrence and $1,000,000 to $2,000,000 aggregate is the standard baseline, and it satisfies the majority of marketplaces and buyers. Higher-risk products, large retail contracts, or big-ticket exposure are the main reasons to carry more.
Get a free quoteWhen to consider more than $1M
- you sell higher-risk goods (ingestibles, electronics, kids' items)
- a large retailer or distributor requires higher limits
- your product could cause serious injury or property damage
- a contract asks for an umbrella above your base policy
Why $1M is the baseline
A $1,000,000 per-occurrence limit meets Amazon, most marketplaces, and most buyers, and covers the majority of product claims. It is the practical starting point; you scale up with an umbrella when a specific product risk or contract calls for it.
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FAQ.
How much product liability insurance do I need?+
For most small eCommerce sellers, $1,000,000 per occurrence with $1M-$2M aggregate is the standard baseline and satisfies most marketplaces and buyers. Higher-risk products or large contracts are the main reasons to carry more.
Related
General information, not insurance advice. Sources: Insurance Information Institute. Reviewed 2026-07-01.