Understanding the Drivers of Product Liability Insurance Costs
Trying to navigate the roads of product liability insurance can feel like navigating
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Etsy seller insurance is a unique coverage designed to protect your online business. If a product you sell leads to third-party injuries or damages, your policy may help you cover the cost of medical bills, legal fees, repairs, and more.
No, Etsy doesn’t require proof of insurance to start selling. However, they won’t back you up in the case of a claim. This leaves you liable to pay for injuries and damages your business caused out of your own pocket.
Insurance Canopy helps you stay focused on your craft by helping you manage your risks and reduce or eliminate the cost of a claim.
Product Types
Claims History
General Liability Limits
$2,000,000*
This is the maximum amount your policy will pay in a 12-month period for product liability claims and completed operations claims.
– Product Liability claims are the result of bodily harm or property damage incurred by your products
– Completed Operations claims are the result of bodily harm or property damage incurred by business operations conducted away from your business’s premises—even after business operations have been completed or abandoned
The amount that your policy will pay for claims arising out of one or more of the following offenses:
– False Arrest, detention or imprisonment
– Malicious prosecution
– Wrongful Eviction or Wrongful Entry
– Oral or written publications that slander or libels a person or organization
– Oral or written publication or material that violates a person’s right of privacy
– The use of another’s advertising idea in your advertisement
$1,000,000
$300,000
$5,000
$2,500
Unfortunately, no—Etsy cannot be sued for a product liability claim instead of you. You agreed to terms and conditions as a seller that state Etsy will not be held responsible for claims of injuries or damages your product caused.
Etsy’s Terms of Use states, “Any legal claim related to an item you [the buyer] purchase must be brought directly against the seller of the item. You release Etsy from any claims related to items sold through our Services, including for defective items, misrepresentations by sellers, or items that caused physical injury (like product liability claims).”
The Etsy indemnification policy also states, “…if Etsy gets sued because of something that you [the seller] did, you agree to defend and indemnify us.”
Essentially, these statements mean that Etsy will not help sellers with a product liability claim, and that you, the seller, are promising to not hold Etsy accountable for any lawsuits, fees, or demands that are part of a liability claim against your shop. Insurance for Etsy sellers may help you cover these types of claims and help you pay for legal expenses.
Yes, Etsy seller insurance can protect your product sales on other e-commerce marketplaces. Insurance Canopy’s plans may cover you in most online markets, such as Ebay, Jane, and Amazon. Our high limits meet Amazon insurance requirements and are accepted by most e-commerce websites.
Our plans allow you to customize your coverage, so you may add coverages and increase limits depending on where you sell your products and what your insurance needs are.
Yes! Even if you don’t have a physical store where someone may trip and fall, you sell products that may lead to cuts, choking, allergic reactions, stains, or fires. If your hand-dyed shirts cause a rash or your custom flower pots don’t drain correctly and ruin someone’s floors, you could be held responsible for the damages.
You also risk your product being damaged in shipping, which could lead to a sharp edge cutting someone’s hand or the product not functioning properly. A crack in a container could lead to a leak or broken electrical component may spark and start a fire.
Product liability insurance for Etsy sellers allows you to have a financial safety net in the case of a claim, so you don’t have to worry about paying for an incident on your own.
Amazon’s insurance requirements apply to any business that operates within the US. Most insurance companies, including Insurance Canopy, will only offer insurance for Amazon sellers who are located in the US. We know this can be frustrating for sellers whose business is based outside of the US but they operate in the US marketplace.
We recommend you register your company in the US before applying for a policy. You can also contact insurance companies in your country.
Etsy seller insurance combines general and product liability insurance into one plan to easily and conveniently protect you from common claims. If you have an approved claim, your policy can help you lower or eliminate the costs you are responsible to pay.
This third-party coverage can help you in instances where your business operations or your product cause bodily injuries or property damage. Oftentimes these can lead to lawsuits, which cost you time, money, and your reputation. There are also coverages that can cover first-party damages to your business, such as damaged or stolen inventory.
Product liability insurance for Etsy sellers helps you manage the risks of accidents like shipping damages, product defects, and mislabeling. Even if you resell products you repackage or parts of your product were not made by you, you can still be responsible for the damages and injuries that result because your business sold the faulty product. Insurance helps to take that risk off your shoulders.
Yes, Amazon says they will help pay for valid product liability claims against sellers as long as they are under $1,000. They will not require any reimbursement from sellers who hold valid insurance policies and abide by seller requirements. Claims will not affect sellers’ order defect rate, and Amazon will keep you informed throughout the entire claims process. Amazon says claims under $1,000 account for more than 80% of all product liability claims.
No matter how careful you are in conducting business, or how well tested your product is, accidents can and will happen. Insurance Canopy helps lower or eliminate the costs that come with product liability claims so you don’t have to pay thousands of dollars on your own. Amazon selling insurance is a smart investment for your small business!
Need additional information before making a decision?
Give our team a call today at 888.600.0894
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All policies have conditions, limitations and exclusions, please read the policy for exact verbiage.
Claim scenario circumstances vary in nature and similar claims do not guarantee coverage.
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