The importer trap
If you private-label goods from overseas, US courts treat you as the manufacturer — the factory in another jurisdiction is effectively judgment-proof. Your policy needs to know you import; undisclosed foreign manufacturing is a classic denial ground. Ask for a vendor's endorsement if you also sell other brands.
- • Certificates from your own suppliers shift risk back up the chain.
- • Recall coverage is separate from liability — price it for food and supplements.
- • Marketplace suspensions after a safety complaint cost more than the claim.
Related guides
Long-form playbooks on the same topic, written by the RevenueLab editorial team.
FAQ
How much does product liability insurance cost for an Amazon seller?
A $300K-revenue seller of low-risk goods pays roughly $1,500–3,000/year for the required $1M policy. Food, supplements, or children's products can run $5,000–15,000+.
Do I need product liability if I only dropship?
Yes — as the seller of record you're in the chain of commerce, and the manufacturer is usually unreachable. Dropshippers face the same lawsuits with even less control over the product.
Does general liability include product liability?
Usually yes as 'products-completed operations' within a CGL policy — but e-commerce sellers often need the product sublimit verified or increased, and high-risk products may be excluded from standard forms entirely.
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