Seller insurance requirements
Do you need insurance to sell online?
The answer depends on where you sell. Amazon and Walmart require it above a threshold. TikTok Shop is moving that way. Etsy, eBay, and Shopify do not mandate it, but you are still liable, and buyers ask. Pick a marketplace to see the exact requirement.
At a glance
Insurance requirements by marketplace.
Marketplace
Required?
When it applies
Minimum limits
Amazon
Required
Within 30 days of exceeding $10,000 in gross sales in any one month on a Professional selling account.
$1,000,000 per occurrence and in aggregate, including product liability and bodily injury.
Walmart Marketplace
Required
Once GMV exceeds $100,000 in any rolling 12-month period, or whenever Walmart requests a COI directly.
$1,000,000 per occurrence and $2,000,000 aggregate, general and product liability, covering claims worldwide.
TikTok Shop
Conditional
Not universally mandated today; expected for higher-risk categories and higher-volume sellers, and enforceable on request.
At least $1,000,000 per occurrence in commercial general and product liability is the widely recommended floor.
Etsy
Not mandated
Not set by Etsy. Driven by your product risk and by buyers or stockists who request a COI.
None set by Etsy; $1,000,000 per occurrence is a common baseline for handmade and physical goods.
eBay
Not mandated
Not set by eBay. Driven by your product risk, sales volume, and any buyer COI requests.
None set by eBay; $1,000,000 per occurrence is a common baseline for business sellers.
Shopify
Not mandated
Not set by Shopify. Driven entirely by your product risk and by the buyers and channels you add.
None set by Shopify; $1,000,000 per occurrence is a common baseline for DTC brands.
Faire
Conditional
When a retailer or stockist on Faire requests a Certificate of Insurance before ordering.
No single Faire-set limit; $1,000,000 per occurrence product liability is a common wholesale expectation.
Requirements as documented as of 2026-07. Confirm against each marketplace's current seller agreement.
Pick your marketplace
Full requirement guides.
Insurance required
Do you need insurance to sell on Amazon?
Read the requirement
Insurance required
Do you need insurance to sell on Walmart Marketplace?
Read the requirement
Often required
Do you need insurance to sell on TikTok Shop?
Read the requirement
Not mandated by platform
Do you need insurance to sell on Etsy?
Read the requirement
Not mandated by platform
Do you need insurance to sell on eBay?
Read the requirement
Not mandated by platform
Do you need insurance to sell on Shopify?
Read the requirement
Often required
Do you need insurance to sell on Faire?
Read the requirement
By the numbers
Why sellers carry it, threshold or not.
Marketplace rules are only half the story. The other half is what a single defective-product claim can cost a seller who is not covered.
$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 ReformFree quote
One policy, every marketplace, priced on real sales.
Enter your email, connect your store, and get product liability insurance that works across Amazon, Walmart, Shopify, TikTok Shop, and more, with a marketplace-ready Certificate of Insurance whenever a platform or buyer asks.
- Starts at $26/mo, about 42% less than comparable A-rated insurers
- Same-day COI with the right additional-insured wording
- No long forms and no annual-forecast guesswork
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
Marketplace insurance FAQ.
Which marketplaces require sellers to have insurance?+
Amazon and Walmart Marketplace require commercial and product liability insurance once you pass a sales threshold. TikTok Shop increasingly expects it for higher-risk categories. Etsy, eBay, and Shopify do not mandate it, but you remain personally liable for your products, and buyers often request a Certificate of Insurance.
How much product liability insurance do online sellers usually need?+
$1,000,000 per occurrence is the common baseline. Amazon requires at least $1,000,000 per occurrence and in aggregate; Walmart requires $1,000,000 per occurrence and $2,000,000 aggregate. Wholesale buyers and retailers typically ask for around $1,000,000 and to be named as additional insured.
What is a Certificate of Insurance (COI) and why do marketplaces ask for one?+
A Certificate of Insurance is proof that your policy exists and meets the required limits, often naming the marketplace or buyer as additional insured. Amazon, Walmart, wholesale retailers, and events ask for a COI to confirm you can cover a product-liability claim before they work with you.
Start now
One policy, every marketplace you sell on.
Connect your store and get product liability insurance priced on real sales, with marketplace-ready Certificates of Insurance whenever a platform or buyer asks.
Start a free quote