Does Shopify require product liability insurance?

No. Shopify's Terms of Service set no insurance requirement, but they make you indemnify Shopify for claims that come from your sales.

Do dropshippers need product liability insurance?

Yes, in practice. As the seller of record you can be sued for a product you never touched. Pair your own policy with a supplier certificate that names you as additional insured.

Does general liability include product liability?

Usually. Most general liability policies include products-completed operations coverage. Check the declarations page for a products-completed operations limit.

How much does product liability insurance cost for an online store?

Insureon reports a median of $42 a month for general liability among its e-commerce customers. Supplements, children's products and batteries usually need more underwriting.

Do I need cyber insurance too?

Product liability does not cover a data breach. If you store customer data or take payments, a cyber policy covers breach response and related claims.

Product liability insurance for Shopify stores and dropshippers

Shopify does not require insurance, but you answer for the products you sell. Product liability insurance pays for injury or property damage that a product you sold causes, including your legal defense. That applies when a supplier made the product and shipped it for you.

Most small stores buy it as part of a general liability policy or a business owner's policy (BOP). Insureon reports a median of $42 a month, or $500 a year, for general liability among its e-commerce customers, at $1 million per occurrence and $2 million in aggregate.

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Who needs it

Any store that sells physical products, including private-label brands and dropshippers.
Sellers who also list on Amazon: the $1 million policy applies past $10,000 in monthly sales, and at any sales level for children's products, cosmetics, ingestibles and lithium batteries.
Sellers on Walmart Marketplace past $100,000 in sales in any 12 months.
Brands that sell to retailers, which often ask for a COI before they stock you.

What it covers and what it does not

What a general liability policy with product coverage typically pays for
Situation	Covered by product liability?	Coverage that fits
A customer is hurt by a product you sold	Yes	General liability, products-completed operations
A product damages a customer's property	Yes	General liability, products-completed operations
Your legal defense against those claims	Yes	General liability
Recalling a product	No	Product recall coverage
Your own inventory is damaged or stolen	No	Business owner's policy or commercial property
A data breach exposes customer cards or emails	No	Cyber liability

Dropshipping

You are the seller of record, so an injured customer can sue your store even if a supplier made the product. Ask each supplier for a certificate that names your business as an additional insured, and keep the supplier contract that says who pays for defective goods. Underwriters will ask who makes each product and where.

Supplements

Supplements are a specialty class. Some carriers decline them, so expect more underwriting questions and a longer quote. Since November 2, 2026, Amazon requires its $1 million policy from the first sale for ingestible products.

What small online stores pay

Insureon publishes medians from its own e-commerce customers, shown below. They describe one agency's book, not the whole market. Your price depends on what you sell, your revenue, where you ship and your claims history.

Median monthly premiums for Insureon's e-commerce customers, as published by Insureon (read 2026-11-03)
Policy	Median per month
General liability ($1M per occurrence, $2M aggregate)	$42
Business owner's policy	$95
Cyber liability	$57

How Delegance quotes it

Tell us what you sell and where. We compare carriers that write your products, explain the coverage in plain terms, and issue the COI with the marketplace's exact additional insured wording once you bind.

Common questions

Does Shopify require product liability insurance?: No. Shopify's Terms of Service set no insurance requirement, but they make you indemnify Shopify for claims that come from your sales.
Do dropshippers need product liability insurance?: Yes, in practice. As the seller of record you can be sued for a product you never touched. Pair your own policy with a supplier certificate that names you as additional insured.
Does general liability include product liability?: Usually. Most general liability policies include products-completed operations coverage. Check the declarations page for a products-completed operations limit.
How much does product liability insurance cost for an online store?: Insureon reports a median of $42 a month for general liability among its e-commerce customers. Supplements, children's products and batteries usually need more underwriting.
Do I need cyber insurance too?: Product liability does not cover a data breach. If you store customer data or take payments, a cyber policy covers breach response and related claims.

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Sources, checked 2026-11-03

Delegance Brokerage is a licensed insurance broker (NPN 21282686). We are not affiliated with Amazon, Walmart, Etsy, Shopify or NEXT. Coverage depends on the policy you buy; read its terms.