Product Liability Insurance for Online Sellers

• Adroit Insurance and Risk
• - June 23, 2025

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If you sell products online, whether through Etsy, Amazon, eBay, or your own website, you could be held legally responsible if something you sell causes injury or damage. That’s where product liability insurance comes in.

Why It Matters

Many online sellers assume they’re too small to need insurance. But if a product is faulty, mislabelled, or causes harm, the seller can be held liable, even if you didn’t manufacture the item yourself. Legal costs to defend a claim can be costly, as well as any court awarded damages, which could threaten your business.

What Does Product Liability Insurance Cover?

1. Personal injury caused by your product
2. Property damage due to the product; plus
3. Legal defence costs.

What Products can be insured?

Any physical goods, from skincare and candles to handmade toys, food products, or electronics.

Are You At Risk?

You’re likely exposed if you:

1. Make or assemble your own products;
2. Rebrand or label products under your name;
3. Import goods from overseas;
4. Sell items not covered by the manufacturer’s insurance.

Some platforms like Amazon may also require proof of insurance above certain sales thresholds.

Protect your business from unexpected legal costs and claims – speak with your Risk Adviser to ensure you have the right cover for your products and sales channels.