E-commerce general liability insurance protects online retailers against third-party claims including product liability, advertising injury, and bodily injury related to your business operations. If a product you sell injures a customer, your advertising infringes on someone’s trademark, or a delivery driver causes an accident, the GL policy responds.
For e-commerce businesses financing inventory or warehouse space through SBA loans, additional hazard insurance is required by the lender on top of standard GL.
Key Takeaways
- Product liability: Covers injury or damage caused by products you sell — even if you didn’t manufacture them
- Amazon/marketplace requirements: Amazon requires $1M GL for sellers exceeding $10K/month in sales
- Cost: $300–$1,500/year for most online-only retailers; more for physical products with higher risk
- Advertising injury: Covers trademark infringement, copyright claims, and defamation in your marketing
- Warehouse operations: If you operate a fulfillment center, add commercial property and workers’ comp
Frequently Asked Questions
Does Amazon require sellers to have insurance?
Yes. Amazon requires third-party sellers who exceed $10,000 in monthly sales in any month to carry commercial general liability insurance with at least $1M per occurrence. Amazon must be named as additional insured on the policy.
Disclaimer: This article is for informational purposes only and does not constitute insurance or legal advice. Consult our licensed advisors for guidance specific to your business.
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