Walmart Liability Insurance: The Essential Guide (2024)

Insurance Basics

The world of eCommerce is extremely lucrative but not without its risks. 

From product malfunctions to shipping issues and customer injuries, unforeseen events can lead to hefty financial losses. But what if there was a way to protect your business from these risks? 

In this blog post, we’ll delve into the importance of liability insurance for Walmart sellers and how you can safeguard your business – without breaking the bank.

The Risks of Selling on Walmart Without Adequate Liability Coverage

Walmart is a great opportunity to get your products in front of more buyers and grow your eCommerce business. But, With greater reach comes greater exposure to a range of potential liabilities. 

For example, a product you sell could malfunction, causing harm to the customer or their property, which may lead to a customer complaint and potential legal claims.

Without adequate insurance in place, these sometimes minor incidents may result in large financial losses for your business in the form of legal expenses and compensation.

The importance of having the right insurance coverage cannot be understated. Not only does liability insurance protect your business, but it also gives you peace of mind, allowing you to focus on what you do best: selling your products.

Furthermore, if you’re a Walmart seller who has reached the threshold at which Walmart mandates you to maintain business insurance, you risk having your Walmart seller account disabled. 

Understanding Walmart’s Liability Insurance Requirements

Walmart logo on phone

Walmart, one of the largest retail corporations in the world, has stringent rules and regulations in place to ensure the safety and security of both its sellers and customers. 

Walmart mandates sellers who reach $100,000 in GMV (Gross Merchandise Value) in a 12-month period to maintain commercial general liability and product liability insurance

As a seller, you are required to upload a certificate of insurance to your Seller Center account that proves you have the necessary coverage.

Your Certificate of Insurance (COI) must include: 

  • The seller’s name. The name on the insurance certificate must match the name listed on your Walmart Marketplace Partner ID
  • General and product liability limits of $1,000,000 per occurrence / $2,000,000 aggregate
  • “Walmart Inc., its subsidiaries, and its affiliates listed as additional insured.” 

Correct as of September 20th, 2023

You can find the full list of requirements and how to submit your certificate of insurance at Walmart Seller Help.

Our policies are specifically designed for Walmart sellers, taking the stress out of finding the right coverage.
From getting your quote and receiving your policy documents to uploading your certificate of insurance to Walmart – we’ve got you covered.

No obligation quote.
Policies can be canceled at any time, with 30 days’ notice.

Meeting these insurance requirements is not just about compliance. It’s about ensuring the long-term success of your business on the platform. Walmart encourages all sellers to obtain General Liability Insurance – no matter how small – to protect their businesses and build a reputation as a reliable and trustworthy seller.  

However, traditional insurance models might not always be the best fit for Walmart sellers. In the next section, we’ll discuss the shortcomings of these models and introduce a new-age solution that aligns with the dynamic nature of online selling.

The Shortcomings of Traditional Insurance Models for Walmart Sellers

Traditional insurance models often base their premiums on annual forecasts. While this approach might work for some businesses, the restrictions and guesswork involved are not a match for the dynamic world of eCommerce. 

The ebb and flow of online sales can be unpredictable, with periods of high sales volume followed by quieter times, leading to two potential issues: under-insurance and over-insurance.

Under-insurance: occurs when your actual sales exceed your forecast, leaving you with insufficient coverage and exposed to significant out-of-pocket expense if you face a claim during a period of high sales. 

Over-insurance: occurs when your actual sales fall short of your forecast, resulting in you paying for more coverage than you need.

So, how do you ensure that you’re maintaining the right amount of coverage that aligns with your actual sales?

How Much Does Walmart Seller Insurance Actually Cost?

how much does amazon seller insurance cost

Assureful’s Pay-As-You-Sell Insurance model is designed specifically to support eCommerce businesses by aligning perfectly with the dynamic nature of online sales. 

Premiums are based on your actual sales, not inaccurate yearly forecasts, for the right amount of coverage at all times.

But even with the most accurate insurance calculations, just how much can a Walmart seller expect to fork out on eCommerce insurance?

Let’s dive into it.

There’s no simple answer, and a huge number of factors come into play when determining the price of your insurance, including:

  • Retail Offerings: The specific products you sell can either hike up or down your insurance costs. Selling lower-risk books? Your insurance might lean towards the lower end. Dealing with high-risk, baby products? Expect a higher premium.

  • Business Assets: The equipment and property integral to your operations play a role. A more extensive inventory or sophisticated equipment naturally calls for a heftier insurance tag.

  • Business Size & Income: As your revenue climbs and your business scales, so does the potential liability, nudging up the cost of insurance.

  • Insurance Type: Whether it’s a basic liability or a comprehensive umbrella policy, the kind of insurance you opt for has a direct bearing on costs.

  • Policy Specifics: Finally, the devil’s in the details. Policy limits and deductibles can make a significant difference to your final insurance bill.

Why Walmart Sellers Are Choosing Pay-As-You-Sell Liability Insurance

Pay-as-you-sell is the most accurate way to protect your business from potential claims – and protect your cash flow.

  • Compliance with Walmart’s Platform: Assureful covers your sales across all major eCommerce platforms and is compliant with major marketplaces like Walmart

  • No Painful Premium Audits: Connected directly to your seller accounts, your premiums are auto-calculated based on your actual sales every month, cutting out hours of paperwork and stressful guesswork

  • Fully Assured Sales, with Accurate Monthly Premiums: Protection against under- or over-insurance that would cause your business financial losses

  • Free, Tailored Quotes: Our ML technology provides quick and free quotes, without lengthy application forms. You get all the information you need, allowing you to make quick decisions to protect your Walmart eCommerce business

Choosing the right insurance provider is a crucial step toward ensuring the long-term success of your business at Walmart. With Assureful, you not only get adequate coverage but also a partner that understands the unique challenges of online selling and provides solutions tailored to your needs.

Walmart logo on phone with amazon

Read our article on How to File a General Liability Claim if the unforeseeable becomes reality

How to Get Walmart Seller Insurance

Insurance for your Walmart seller business will vary depending on the type of products you’re selling and the perceived risk level. 

Assureful’s monthly-billed and pay-as-you-sell insurance ensures you maintain the right coverage, at the best possible cost. With premiums calculated based on your actual sales, not annual forecasts. 

Get a free quote today for the most accurate and competitive rates to fit your business needs – and save on Commercial General Liability Insurance for your Walmart business. 

No obligation quote.
Policies can be canceled at any time, with 30 days’ notice.

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