Product Liability Insurance for Importers
4.8/5 on
- Meet national compliance standards
- Protect against product lawsuits for injuries, damages, or defects
- Satisfy marketplace requirements
- Scale with confidence
What Is Product Liability Insurance for Importers?
Being a part of the supply chain comes with risks. Even if you didn’t manufacture an item, U.S. law treats importers as manufacturers, which means you can be held legally responsible if a product leads to accidents or recalls.
Importer product liability insurance is designed to protect you from claims of injury or damage related to products you import, distribute, or sell. This coverage can help defend your business against lawsuits related to product defects, labeling errors, and customer injury claims — plus, online marketplaces, retailers, and distributors often require vendors to carry product liability insurance.
Who Needs Business Insurance for Importers?
Product liability coverage is crucial for importers who source products, parts, or ingredients for retail, wholesale, or manufacturing. The top importing industries Insurance Canopy covers include:
- Fulfillment & Distribution Centers: Warehouses or businesses that store, process, and ship products
- Suppliers & Manufacturers: People or companies that produce products or purchase products, which are then sold or used by others
- Retailers: People or businesses that sell products directly to consumers in physical stores, online, or at temporary locations such as markets or events
- Wholesalers: Companies or organizations that buy products in bulk from producers for a lower price and then resell them to retailers or other businesses
Dig deeper: This guide to product liability insurance details more of what’s covered, what’s not covered, costs, and other frequent questions.
Why Do Importers Need Product Liability Insurance?
Importers need product liability insurance because they can be held liable for injuries and property damage caused by a defect in a product they imported, even if they had nothing to do with manufacturing it. Importer product liability insurance is built to protect you from claims and lawsuits arising from products you bring into the country.
This coverage also helps you grow your business. Retailers and online marketplaces, like Amazon and Walmart, often require vendors to carry product liability coverage once they reach a certain sales threshold.
| If You Want To... | When Proof of Insurance May Be Required | What You May Need | Why It Matters |
|---|---|---|---|
|
Sell on Amazon |
After $10,000 in monthly sales or when Amazon requests it |
Product liability insurance, a Certificate of Insurance (COI), and, when required, additional insured status |
Amazon may require proof because importers can be liable for the products they sell |
|
Sell on Walmart Marketplace |
After $100,000 gross merchandise value in a rolling 12-month period, or when Walmart requests it |
Product liability insurance and a COI |
Walmart may require proof to continue selling |
|
Sell on Etsy or eBay |
Insurance isn’t currently required, but business partners may request it |
Product liability insurance is recommended |
Importers can still be liable if a product causes injury or damage |
|
Sell through Shopify |
Shopify doesn’t require insurance, but fulfillment partners or retailers may |
Product liability insurance is recommended |
Your legal responsibility doesn’t change when selling through your own store |
Scroll to see full table ➡️
What is a COI? A Certificate of Insurance (COI) is a document that outlines key insurance information, such as coverage limits and policy periods. Retailers and marketplaces request COIs to confirm that your insurance is active and meets their requirements.
How Much Does Importer Product Liability Insurance Cost?
Importer product liability insurance costs an average of $700 to $3,000 per year with Insurance Canopy.
Each policy is tailored specifically to your business, so you only pay for the coverages you need. Your premium depends on factors such as the type of goods, the quantity sold, and where they ultimately end up. Pricing factors include:
- Annual revenue: Higher sales volume increases risks, which can raise your premiums
- Type of imports: High-risk or high-value items, like supplements or jewelry, may cost more to cover
- Claims history: Previous claims you’ve filed may influence your rate
- Desired coverage limits: Like any upgrade, increasing limits or adding extra coverage comes with additional costs
- Business operations: Whether you dropship, warehouse, or private label affects your overall coverage needs and costs
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Extremely user friendly website, super affordable and very little time needed to apply.
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They provided clarity on the importance of insurance for a first time business owner in the cleaning space and provided clear insight next steps and options for coverage.
Evergreen Multiservices
February 2, 2026Extremely user friendly website, super affordable and very little time needed to apply.
Carl Sari
January 31, 2026Excellent company, Great service, the best!!!
Claudina Adams
January 15, 2026 -
Super affordable insurance for a small business like myself super happy to be able to provide this to my customers really helps of landing more gigs
Alex
January 5, 2026Really went the extra mile to find the appropriate coverage for my business.
Daisy B
January 2, 2026Canopy provided escatly what I neede to book the gig, and at a very affordable price.. Thank You!
Andy Anderson
December 22, 2025 -
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Peter Flessas
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Yuri Gonzalez
December 11, 2025 -
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Very easy to renew policy
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Get custom coverage for your business with a fast application, quick quote, and licensed agent support.
Importer Product Liability Insurance
Importer insurance with Insurance Canopy helps protect you against accidents and product-related claims. It includes both general and product liability insurance, with up to $1 million in coverage per claim (occurrence) and $2 million total per policy year (aggregate).
General liability insurance is designed to cover third-party injury or property damage claims that are not directly caused by your products, such as if someone slips while visiting your warehouse. It can also help cover legal costs if you’re accused of advertising injury, like copyright infringement.
Product liability insurance helps protect you from claims related to the products you import. If a customer claims damages caused by something you sold or distributed, this coverage can pay for legal defense, medical bills, and settlements.
- Product recall insurance: Helps you act fast if something needs to be pulled from the market
- Commercial property insurance: Can protect the space and equipment you rely on for operations
- Workers compensation insurance: Designed to cover medical bills, lost wages, and recovery costs if someone’s hurt on the job — legally required in most states if your business has employees
- Inland marine insurance: Helps protect tools, equipment, and products while on the move or off-site
- Cyber liability insurance: Can cover the fallout from cyberattacks and data breaches
- Importers E&O insurance: Built to protect your business if a product recommendation, advice, or service mistake costs a client money
- Amendment of Coverage Territory endorsement: Extends coverage worldwide for claims outside the U.S. — helpful if your products sell internationally or reach overseas customers
- Primary & non-contributory endorsement: Ensures your policy pays first on a claim, before anyone else’s — often required when other businesses want your coverage to apply before theirs
- Waiver of subrogation: Stops your insurer from pursuing a third party to recover claim costs — commonly requested to keep business relationships smooth
- 30-Day cancellation notice: Notifies a third party, usually an additional insured, that your policy will be canceled within 30 days — often required in agreements or lease contracts
Peace of mind, imported with every product.
- Apply online in 10 minutes or less
- Enjoy A+ rated coverage
- Access your online dashboard 24/7 to download your certificate of insurance or add additional insureds
FAQs About Importer Product Liability Insurance
Does My Overseas Supplier's Insurance Cover Me in the U.S.?
An overseas supplier’s insurance typically does not cover U.S.-based importers if problems arise from defective products. Importers, private-label sellers, distributors, and retailers can all face product liability claims, even if they didn’t design or manufacture the product.
Carrying your own product liability insurance policy can help shield you from claims related to products you import.
What Does It Mean That U.S. Law Treats Importers as Manufacturers?
Importers can be considered liable for product defects because U.S. law requires someone to be responsible for product safety. In the U.S., if there’s no domestic manufacturer, the importer of a defective product can be held accountable for customer injuries and property damage.
What Proof of Insurance Do I Need to Sell Imported Goods through Online Marketplaces?
Many online marketplaces, including Amazon and Walmart, require proof of insurance in the form of a Certificate of Insurance (COI) from vendors who reach a certain threshold of sales. Without it, you may lose access to those platforms or face delays in getting products to retail partners.
If Amazon is your primary sales venue, consider Amazon seller insurance to cover your bases while selling with the world’s largest retailer.
Does Importer Insurance Cover Product Recalls?
Importer insurance doesn’t automatically cover product recalls, but adding product recall insurance to your insurance policy can help you act fast if something needs to be pulled from the market. This coverage can help with notifying customers, shipping returns, disposing of the product — even P.R. management.
What Is the Difference Between Importer Insurance and Foreign Supplier Liability Insurance?
Insurance Canopy’s importer insurance is designed to protect importers from product liability claims arising in the U.S. and Canada, while foreign supplier liability insurance generally provides coverage for claims that arise overseas. If the products you import are then sold or shipped overseas, adding a worldwide territory endorsement to your importer insurance policy can expand coverage to anywhere in the world your products are sold.
Do I Need Separate Insurance for Each Product I Import?
Usually, one product liability insurance policy can cover multiple imported products, provided they’re accurately disclosed during the application process and fall within the types of products your policy is intended to cover. Always check with your insurance provider before adding a new product to your catalog to make sure it’s not excluded from your policy.
Still have questions regarding our policies? Feel free to reach out to our licensed insurance agents. We are available Monday through Friday from 8am–8pm ET.
Product liability lawsuits happen when a product causes bodily injury or property damage,
When you sell a product, you’re also taking on responsibility for what happens
You make great food, maybe even the best. But here’s the uncomfortable truth: