Insurance coverage for E-commerce & Retail

• Do you need insurance for an online business?

  Not by law — no statute requires insurance just because you sell online; mandates attach to employees and vehicles, not websites. The requirements that actually reach online sellers are contractual: Amazon requires $1 million per occurrence in liability coverage within 30 days of passing $10,000 in monthly sales, and a homeowners policy caps the inventory in your garage around $2,500.

• Do importers need cargo insurance?

  Yes — if losing a shipment would hurt. The ocean carrier is not your insurer: under COGSA, carrier liability is capped at $500 per package unless a higher value was declared, and unless you bought on CIF terms, nobody is obligated to insure your goods but you. Ocean cargo insurance replaces that recovery lottery with your own policy.

• Amazon seller insurance requirements — the compliance mechanics

  Amazon requires commercial liability insurance once gross proceeds exceed $10,000 in a month: at least $1 million per occurrence and aggregate, naming "Amazon.com Services LLC and its affiliates and assignees" as additional insureds, deductible no greater than $10,000, insured name matching your legal entity. Proof is a certificate uploaded in Seller Central — and most rejections are paperwork errors.

Liability questions for E-commerce & Retail

General liability, E&O, D&O, and employment practices questions live on our sister publication: E-commerce & Retail on pleasedontsue.us.