Online marketplaces fall into two groups. A few require a certificate of insurance once you reach a trigger — a sales level, a product category, or simply an invitation to sell. The rest require nothing, but leave you fully exposed if a product injures someone. This table is the starting point; each row links to the detail where we have it.
Requirements at a Glance
| Marketplace | When insurance is required | Minimum limits |
|---|---|---|
| Amazon | Any listing in an enhanced safety category (from Nov 2, 2026); otherwise within 30 days of a month above $10,000 in gross proceeds | $1M per occurrence / $1M aggregate; deductible up to $10,000 |
| Walmart | Above $100,000 GMV in any 12 months, or on request | $1M per occurrence / $2M aggregate |
| Target Plus | On acceptance to this invitation-only marketplace | Commonly cited as $5M general liability (primary plus umbrella allowed) |
| TikTok Shop | Not for every seller today; may be required by category or on request, with notice first | None published; $1M per occurrence is the usual floor |
| Faire | Not by Faire; retailers buying wholesale may ask for a COI | $1M per occurrence is a common expectation |
| Etsy | Not required | — |
| eBay | Not required | — |
| Shopify | Not required | — |
Requirements as published or reported in fall 2026. Target Plus and TikTok Shop terms come from partner agreements and seller notices that aren’t fully public; confirm in your seller account before buying.
How Each Platform Must Appear on Your Certificate
| Marketplace | Certificate wording |
|---|---|
| Amazon | Additional insured: Amazon.com Services LLC and its affiliates and assignees |
| Walmart | Certificate holder: Walmart Inc., 702 SW 8th Street, Bentonville, AR 72716-3570, Attn: Insurance Compliance — or additional insured: Walmart Inc., its subsidiaries and its affiliates |
| Target Plus, TikTok Shop, retailers | As stated in the partner agreement or the buyer’s request |
“Not Required” Doesn’t Mean “Not Liable”
Etsy, eBay and Shopify don’t ask for insurance, but product liability law doesn’t care which website a product was sold on. Anyone in the chain of distribution — manufacturer, importer, brand owner, retailer — can be named in an injury suit. If you import products under your own brand, you are often treated as the manufacturer, because the overseas factory is hard for a U.S. plaintiff to reach. Handmade sellers face the same exposure for candles, cosmetics, children’s items and food. The marketplace’s own buyer protection programs cover refunds, not injuries.
Building One Policy for Every Channel
Most multi-channel sellers are better off with a single commercial general liability policy that includes products-completed operations coverage and lists every channel, than with separate policies per platform. To pass all of the requirements above at once, ask for:
| Policy feature | Why |
|---|---|
| $1,000,000 each occurrence | Meets every marketplace that publishes a limit |
| $2,000,000 general aggregate and $2,000,000 products-completed operations aggregate | Walmart requires a $2M aggregate; Amazon’s $1M is satisfied too |
| Products-completed operations included at full limits | Some low-cost policies exclude or sublimit products — the coverage marketplaces actually care about |
| Blanket additional insured where required by written contract | Adds Amazon, Walmart and wholesale buyers without a separate endorsement for each |
| Vendors endorsement (ISO CG 20 15) or equivalent | Extends your products coverage to retailers that resell your goods |
| Deductible of $10,000 or less | Amazon’s cap |
| Occurrence form | Amazon’s default requirement; claims-made only where a category demands it |
| Umbrella or excess layer if a partner asks for $5M | Typical route to Target Plus-level limits |
| All products and all sales channels disclosed | An undisclosed product line or channel is the most common reason a claim is disputed |
The certificate is just proof of this policy. Each marketplace gets its own certificate with its own holder and additional insured wording, issued by your broker or insurer from the same policy. Our guides to certificates of insurance and additional insured vs. certificate holder explain the difference.
What Drives the Price
| Factor | Effect on premium |
|---|---|
| Product category | The biggest factor. Apparel, home décor and accessories are cheap to insure; supplements, cosmetics, baby products, lithium batteries, e-bikes and anything ingested cost more, and some carriers decline them |
| Annual gross sales | Product liability is usually rated on sales, so premium grows with revenue — with a minimum premium at the low end |
| Where products are made | Some carriers decline or surcharge products manufactured overseas without a U.S. importer of record |
| Limits and aggregates | $1M/$2M costs modestly more than $1M/$1M; a $5M umbrella adds a separate premium |
| Claims and recall history | Prior product claims or recalls raise the price or limit options |
| Testing and documentation | Lab test reports (CPSIA, UL, FDA registration where applicable) make placement easier |
A practical way to decide whether a product line can carry its insurance cost is premium per unit: divide the annual premium by the units you sell across all channels, and compare it with your contribution margin. A $1,200 policy is $2.40 a unit at 500 units a year but $0.12 at 10,000. Our Amazon guide has a per-unit table, and the business insurance calculator gives a general liability starting point.
Other Coverage Online Sellers Ask About
- Product recall insurance pays recall costs such as notification, shipping and destruction, which liability policies exclude.
- Inventory (commercial property) coverage protects stock in your own space; inventory in an Amazon or third-party warehouse may need a policy that covers property in transit and at others’ premises.
- Cyber liability matters if you store customer data on your own site.
- Professional or E&O coverage is worth considering for instructional, wellness or software products where a claim could be about advice rather than injury.
Frequently Asked Questions
Which online marketplaces require sellers to have insurance?
Amazon, Walmart Marketplace and Target Plus require liability insurance once their triggers are met. Amazon requires $1 million coverage for any seller with a listing in an enhanced safety category from November 2, 2026, and for other sellers after a $10,000 month. Walmart requires it above $100,000 in sales over 12 months. TikTok Shop does not currently require it from every seller, and Etsy, eBay and Shopify do not require it.
Does Etsy require sellers to have liability insurance?
No. Etsy does not require insurance, but sellers can still be sued if a product causes injury, and some retailers and wholesale buyers ask Etsy sellers for a certificate of insurance before stocking their products.
Does TikTok Shop require product liability insurance?
Not for every seller as of fall 2026. TikTok has said insurance may become required and that sellers will be notified before enforcement, and it can ask individual sellers for proof of coverage, particularly in higher-risk categories.
Can one insurance policy cover Amazon, Walmart and my own website?
Yes. A single general liability policy with products-completed operations coverage, $1 million per occurrence and $2 million aggregates, a blanket additional insured endorsement and all sales channels disclosed can satisfy both Amazon and Walmart, with a separate certificate issued for each.
How much insurance does Target Plus require?
Seller integration guides cite $5 million of commercial general liability for Target Plus partners, which can be met with a primary policy plus an umbrella or excess policy. Target Plus is invitation-only, so confirm the exact terms in the partner agreement.
This content is for informational purposes only and does not constitute legal or insurance advice. Marketplace requirements are set in each platform's seller agreement and can change without notice; confirm current terms in your seller account and review coverage with a licensed insurance professional.