If you sell physical products, product liability insurance protects your business if a product causes injury or property damage. Many e-commerce sellers overlook this until something goes wrong.
Do You Need It?
Amazon requires product liability insurance for professional sellers once you exceed a certain monthly sales threshold. Even below this, it is strongly recommended for any product that could conceivably cause harm.
What It Covers
- Legal defence costs if someone claims your product caused injury
- Compensation payments if you are found liable
- Product recall costs (some policies)
Cost
For most small e-commerce businesses, product liability insurance costs 200 to 500 pounds per year. This is a small price for the protection it provides.
Getting a Policy
Specialist e-commerce insurers understand the needs of online sellers. Get quotes from at least three providers and ensure your policy covers all the marketplaces you sell on.
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