Retail Product Insurance
Safe from shelf, to cart, to doorstep — we cover your risks as a brick-and-mortar or online seller.
- Stay Compliant – Coverage to meet landlord, vendor, and contractual requirements
- Guard Against Product Defects – Protection if products you stock cause injuries or issues (even when they’re not your fault)
- Scale Worry-Free – Support to sell confidently at every stage of growth
What is Product Liability Insurance for Retailers?
Retail product insurance shields your business from pricey product defect claims. You’re a stop on the distribution chain that brings products to customers — that means you often get named in a lawsuit if something goes wrong. If a product you sell results in injuries or damage to others, insurance can help cover your legal costs.
Retail product insurance is a financial safety net for the business you’ve worked so hard to build. Your coverage can help absorb the blow if you face a claim, keeping your doors open and your business resilient.
Who Needs Retail Product Insurance?
Whether you’re a boutique owner, an Amazon seller, or a dropshipper, you need retail product insurance to protect your business if you sell physical products. Top retail industries we cover include:
Why Do I Need Retail Product Liability Insurance?
Many retailers don’t realize they can be legally responsible for paying if they sell or resell a defective product — even if they didn’t manufacture, package, or ship it themselves. No matter who dropped the ball, we have your back.
You should be free to focus on turning customers into fans, not worrying about what-ifs. Product liability insurance for retailers covers your risk of injury and property damage claims if you sell a product you didn’t realize was defective, contaminated, or mislabeled.
Real-life risks, covered.
Vendor compliance
A supplier requires proof of insurance before allowing you to carry their luxury makeup line. Coverage lets you stock the premium products you want without pricey delays.
Defective products on your shelves
Unknown to you (until the lawsuit), a blender you sell can overheat. Even if you didn’t make it, your store could share the responsibility of paying if someone gets hurt. Insurance helps cover legal costs, like your defense or settlements.
Improper storage or handling
A skin cream spoils on your stockroom shelves, causing rashes for your customers. Your coverage could help with medical costs and claims.
Labeling mistakes
You sold a supplement without an allergen label, and a customer had a severe reaction. Your policy can help cover treatment and protect your reputation as a business that cares.
Online seller risks
Your Etsy store customer claims a phone case you sold caught on fire. Fulfilling the order through a marketplace doesn’t mean it’s Etsy’s job to pay — responsibility often falls back on you. Insurance helps cover your legal costs.
Product recalls
One of your suppliers issues a recall for a dog toy. Product recall coverage could pay back the cost of pulling items off your shelves, notifying customers, and legal claims.
Just one lawsuit can drain your savings and even shut your doors for good. Insurance frees you up to build the vendor relationships you want, earn customers’ trust, and grow your store safely.
How Much Does Retail Product Insurance Cost?
The cost of product liability insurance for retailers varies, so stores can pay anywhere from $500 to $10,000+ annually. Over half of our product liability customers pay under $1,400 per year, but your business’s cost will depend on your:
- Annual revenue
- Level of risk
- Product types
- Claims history
- Manufacturing location
- Coverage limits needed
- Additional coverages
Your store deserves coverage customized for whatever makes shopping with you special. Our agents assess your business to build the perfect safety net. A good policy pays for itself by helping you bounce back quickly if there’s an accident.
What’s Covered by Retail Product Insurance?
Retail product liability insurance from Insurance Canopy shields you from expensive 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).
Looking for more protection? Our licensed agents can tailor your policy to your needs, whether it’s higher limits or extra types of coverage. Here are the coverages in your retail product policy, plus some optional add-ons to create your store’s perfect fit.
Included
General Liability Insurance
General Liability Insurance covers physical injuries and property damage to others caused by your business or a location you own. For example, if an elderly customer slips and falls in your store, this coverage helps pay medical bills, legal costs, and more.
Products & Completed Operations Insurance
Product Liability Insurance keeps protecting you if something goes wrong with a product after your customer takes it home. This coverage helps pay legal, medical, and repair costs if a product you sold harms someone or damages their property. Common claims we see include manufacturing defects, design issues, or missing labels and warnings.
Recommended Add-ons
Product Recall Insurance
When a product you sold is recalled, Product Recall Insurance helps you act quickly to limit the chance of lawsuits and impact on your store. This insurance helps with notifying customers, returns, safe disposal, and even crisis management.
Commercial Property Insurance
Commercial Property Insurance protects physical locations, like a leased or owned storefront. It can cover damage or loss to your building, equipment, products on your shelves, or stored inventory on your premises. Get back on your feet quickly after a tree falls on your roof during a storm or a burst pipe floods the stockroom.
Workers Compensation Coverage
Required for employers in most states, Workers Compensation Insurance watches out for your team if there’s an accident on the job. Workers comp could pay medical bills, lost wages, and recovery costs if a staff member messes up their back while stacking heavy boxes or has their foot crushed by a forklift.
Inland Marine Insurance
Inland Marine Insurance helps protect your merchandise while in transit or away from your store. This is essential coverage for any retailer that ships to customers or stores extra stock outside its main location. Dropshippers, e-commerce stores, and sellers on marketplaces like Amazon, Etsy, and eBay will likely want this coverage.
Cyber Liability Coverage
Retailers have become the number one target for cybercrime, making Cyber Liability Insurance vital to avoid the high costs of data theft. If you do any e-commerce or store customer data online, we recommend this coverage to help pay if getting hacked leads to lawsuits, identity recovery costs, and PR needs to protect your brand.
Commercial Auto Insurance
Protect company vehicles like trucks, delivery vans, and cars with Commercial Auto Insurance. This coverage is designed to cover repair, medical, and legal costs if there’s an accident. Stolen or vandalized company vehicles can also fall under commercial auto coverage.
Heads up: Your state might require this coverage if transporting products is part of your business.
Hired & Non-Owned Auto Insurance
Hired and non-hired auto insurance covers vehicles your store uses but doesn’t own (for example, if your employees use their own cars for deliveries). This coverage could help with property damage, medical bills, or lawsuit costs if you or an employee gets into an accident in this kind of vehicle.
Errors & Omissions Insurance (E&O)
E&O Insurance is designed to protect retailers when your advice or service hurts a customer financially. If your team makes a mistake during an installation, or if your advice on choosing a product turns out to be wrong, this coverage could cover your legal costs.
Commercial Surety Bonds
Commercial Surety Bonds help clients, vendors, and regulatory bodies trust that you’ll fulfill a contract or meet a requirement. They cover the other party’s losses if you don’t do what you said you would.
Note: Surety bonds may be required for specific products. For example, a convenience store might need alcohol, cigarette, or lottery bonds to legally promise the state they’ll pay the special taxes on these items.
Amendment of Coverage Territory (Worldwide Coverage) Endorsement
Ideal for selling and shipping internationally, the Amendment of Coverage Territory endorsement protects against accidents involving your products or sales outside the U.S. If you face a claim from business activities abroad, this endorsement can protect you from legal costs.
Primary & Non-Contributory Endorsement
This endorsement adjusts your policy to kick in first to cover a claim, before (for example) a supplier’s or contractor’s policy. Contracts may require this kind of insurance if you work with other businesses. It’s your way of saying, “I’ll pay first up to this much” if there’s an accident you’re both responsible for (which means their insurance might have to pay less).
Waiver of Subrogation Endorsement
Landlord and vendor contracts often require a Waiver of Subrogation — a promise that your insurance company won’t come to them to pay back claim costs if they’re also responsible. This waiver helps build trust in your business relationships by taking a possible legal dispute off the table.
30-Day Cancellation Notice Endorsement
A 30-Day Cancellation Notice lets someone else know if your policy will be canceled within 30 days. Agreements and lease contracts may require you to set this up for your additional insureds as a heads-up, since they also rely on your insurance.
135,000+ Businesses Trust Insurance Canopy
You make delighting customers your business — so do we! Insurance Canopy has your back.
Thank you so much
Steve Monreal
July 11, 2025I needed a portable policy as a yoga instructor. I found this company in an online search. Called and got details from them, was quite surprised at how affordable... Read More
Jamie Calaway
July 4, 2025Very easy & quick experience. We got insurance in no time with no hassle. Thank you!
Robert Earnest
July 4, 2025I am glad I went with them. I needed a last minute policy to cover an event I was doing and they had exactly what I needed at a... Read More
Deloris Pacheco
June 27, 2025Very easy to renew policy
Elyce Nissinoff
June 18, 2025Representative Sarah was very helpful. Walked me through every step and not to mention the price even matched the service! Would recommend to any and everyone.
queenkiam
June 18, 2025Would have 5 starts, but not right now. This is the first time I have ever had to pay for an additional insured ever in 20 year's. They either have... Read More
Anthony Burgess
June 18, 2025Very user friendly platform. Multiple options. Very good pricing. Needed liability insurance in order to secure a very good paying event for my solo tribute show. Was set up within... Read More
Michael Riley
June 18, 2025Needed DJ insurance for Memorial Day weekend & was squared away within an hour for 2 events! Highly recommend
Jay Solis
June 18, 2025What a lovely experience I had with Insurance Canopy! Easy and fast sign up, great policy, matches my needs as a self-employed business owner. Highly recommend!
Masha Rusanov
June 18, 2025great little company, with fair pricing, for entertainers who need occasional coverage.however, they have long hold times to speak to an agent, and their customer service left a little something... Read More
Gretje Angell
June 18, 2025Provides event insurance at a very reasonable price compared to other companies. Easy to purchase and provide proof of insurance.
David Fox
May 18, 2025They can help.you with the right Insurance you need, and the lowest price
Alvaro Baltazar
May 18, 2025everything is excellent
Radames Martinez
May 18, 2025Extremely affordable event insurance and an easy to work with system and team that will advise you every step of the way!
Ishan Arvin
May 18, 2025Affordable for dance & yoga folk. Thumbs up!
Maia Claire
May 18, 2025Affordable. Thank you.
Ana Young
April 18, 2025For me, this application process was super efficient and easy to navigate on line. That goes a long way!
Holly Mulder
April 18, 2025I'm a new customer/policy holder. Super easy online application and policy setup. Very competitive rates. Certificate of insurance generated and received (PDF) immediately once method of payment established. Great service... Read More
Matthew Terry
April 18, 2025Canopy insurance has covered my DJ business for several years and I am totally satisfied with their services.Thank you DjVic🎧
DjVic Universal Sounds
March 18, 2025I have not had any issues over the years with Insurance Canopy, with canceling and renewing, I have found the cost of coverage in line or better then some. I have... Read More
John Corkins
March 18, 2025I was feeling overwhelmed with the specifications needed for my insurance coverage. I was offered friendly, quick and clear assistance. Through Canopy and Rey's help I was able to obtain... Read More
ESPIE QUINTERO
February 18, 2025Great for Event Insurance - most affordable
Gaby Nobrega
February 18, 2025I have them for 3 years this year seems price went up . I have never had to use them for a claim so really couldn’t tell you about that!
Denice Lapointe
February 18, 2025TLJ's Mobile Mixology, LLC had been insured with Insurance Canopy since it's inception and we have no complaints.
Tenisha J.
February 4, 2025Knowledgeable, kind, attentive and professional. She helped me to feel comfortable, well taken good care of and get the service possible.
Ed Levitt
February 3, 2025As a Massage Therapist, I was not aware until a few years ago that I did not have to be part of an Organization to get my liability insurance! I... Read More
Kristie Williams
January 30, 2025This insurance has helped me secure events with my corporate and local government clients. They have great customer service and are always willing to help.
Tony Felix
January 23, 2025Representative was clear & concise in explaining specifics of the policy. Cost of policy very reasonable.
John B
January 16, 2025Was waiting for two other insurance companies to get back to me for over 2 1/2 weeks and losing money every day. Sitting here, frustrated I asked ChatGPT what... Read More
Chad Laibly
January 6, 2025
Thank you so much
July 11, 2025I needed a portable policy as a yoga instructor. I found this company in an online search. Called and got details from them, was quite surprised at how affordable... Read More
July 4, 2025Very easy & quick experience. We got insurance in no time with no hassle. Thank you!
July 4, 2025I am glad I went with them. I needed a last minute policy to cover an event I was doing and they had exactly what I needed at a... Read More
Deloris Pacheco
June 27, 2025Very easy to renew policy
Elyce Nissinoff
June 18, 2025Representative Sarah was very helpful. Walked me through every step and not to mention the price even matched the service! Would recommend to any and everyone.
queenkiam
June 18, 2025Would have 5 starts, but not right now. This is the first time I have ever had to pay for an additional insured ever in 20 year's. They either have... Read More
Anthony Burgess
June 18, 2025Very user friendly platform. Multiple options. Very good pricing. Needed liability insurance in order to secure a very good paying event for my solo tribute show. Was set up within... Read More
Michael Riley
June 18, 2025Needed DJ insurance for Memorial Day weekend & was squared away within an hour for 2 events! Highly recommend
Jay Solis
June 18, 2025What a lovely experience I had with Insurance Canopy! Easy and fast sign up, great policy, matches my needs as a self-employed business owner. Highly recommend!
Masha Rusanov
June 18, 2025
Questions About Retail Product Insurance
Why do I need retail product insurance if I don’t make the products?
When a product defect hurts someone, the standard legal advice is to sue everybody in the distribution chain, from the manufacturer to the store that sold it. Even if you didn’t make the product or know about the defect, you can still be partially responsible to pay, which means you need insurance to cover that risk.
Manufacturing defects are the most common cause of product liability claims for retailers. Make sure you’re protected from pricey claims with retail product insurance.
Retail product liability vs general liability insurance: what’s the difference?
Retail product liability and general liability are both types of insurance that all retail businesses should have — they just protect you against different types of risks:
General liability covers your business’s risk of causing bodily injuries or property damage to others. If a customer injures themselves trying to reach a high shelf, a fire in your rented store spreads to the next unit, or your delivery driver damages a customer’s garage door during unloading, general liability could cover it.
Retail product liability covers product-related accidents, injuries, and legal costs. It’s often used to protect against design, manufacturing, labeling, or marketing defects.
Does product liability insurance cover online sales as well as in-store sales?
Yes! Product liability insurance is designed to protect brick-and-mortar and online sellers. You can further tailor your policy toward in-store vs online risks with add-on coverages like cyber liability, inland marine, or commercial property insurance.
Is retail product liability insurance required by law?
Retail product liability insurance usually isn’t a legal requirement, but it’s often necessary to get the contracts you want with suppliers, landlords, and other businesses. Carrying liability insurance is a retail industry standard practice that manages risks, protects your reputation, and keeps you ready to partner with other companies.
If I sell imported goods, am I still liable for defects?
Yes, importers and resellers of imported goods are still liable to pay if they sell defective foreign-made products in the U.S. In fact, lawsuits around imported product defects may go after importers and U.S.-based retailers first, since a foreign manufacturer may not have a U.S. presence (making them a less likely source for a payout).
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