Why do Walmart sellers need insurance?
Selling on Walmart gives you access to an enormous customer base, but it also exposes your business to risk. Product liability insurance can help pay for attorney's fees, court costs, and a judgment or settlement if a product harms a customer. Other policies may be required by state law.
Find the right coverage
Insureon helps Walmart sellers find policies that match their unique risks and requirements. Fill out a free application to compare quotes from top-rated insurance companies.
Got questions? Our insurance agents will help you every step of the way.
What types of business insurance do Walmart sellers need?
These policies protect against the most common risks of selling on the Walmart Marketplace.
Business owner's policy
A business owner's policy, or BOP, is a cost-effective way for Walmart sellers to buy general liability coverage and commercial property insurance together.
- Product liability lawsuits
- Damaged or stolen inventory
- Business interruption coverage
General liability insurance
This policy covers common third-party lawsuits, such as slip-and-fall accidents. It typically includes product liability insurance for financial protection against harm caused by your products.
- Customer bodily injuries
- Product liability claims
- Copyright infringement
Workers’ compensation insurance
Most states require workers' comp for Walmart Marketplace sellers who have employees. It also protects sole proprietors from work-related injury costs that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Legal fees from worker injuries
Cyber insurance
This policy helps Walmart sellers recover from data breaches and cyberattacks. It’s sometimes called cyber liability insurance or cybersecurity insurance.
- Customer notification expenses
- Fraud monitoring services
- Cyber extortion demands
Commercial umbrella insurance
Umbrella insurance boosts coverage on a Walmart seller's general liability, employer’s liability, or commercial auto insurance policy once the limit is reached on a claim.
- Customer injury lawsuits
- Property damage lawsuits
- Auto accident lawsuits
Commercial auto insurance
Most states require commercial auto insurance for business-owned vehicles. This policy covers accidents involving a Walmart seller's delivery van or other vehicle.
- Injuries caused to another person
- Property damage caused by your vehicle
- Vehicle theft and vandalism
How much does Walmart seller insurance cost?
Walmart sellers who work independently can expect to pay less for insurance than stores that hire employees.
Factors that affect Walmart sellers insurance cost include:
What are Walmart seller insurance requirements?
Walmart only requires insurance for sellers who reach $100,000 in gross merchandise value (GMV) during any 12-month period. These sellers must provide a certificate of insurance (COI) for:
- General liability insurance: $1 million per occurrence; $2 million aggregate
- Product liability insurance: $1 million per occurrence; $2 million aggregate
The product liability insurance can be standalone coverage or part of the general liability policy, and it must cover claims that occur worldwide. "Walmart Inc., its subsidiaries, and its affiliates" must be listed on the policy as an additional insured.
To sell on the Walmart Marketplace, you do need qualifications other than insurance. That includes a business tax ID or business license number, documents that verify your business's name and address, and products with GTIN/UPC GS1 company prefix numbers.
On the other hand, Walmart suppliers always need insurance coverage. They have more strict requirements than Marketplace sellers.
Both Walmart sellers and suppliers may need workers' compensation insurance and commercial auto insurance, depending on the laws in their state.
How do I get insurance for Walmart sellers?
It's easy to get insurance for Walmart sellers and other e-commerce businesses if you have your business information on hand. Our application will ask for basic facts, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:
- Complete a free online application.
- Compare insurance quotes and choose a policy.
- Pay for your policy and download a certificate.
Insureon's licensed agents work with top-rated U.S. providers to find the right Walmart liability insurance for your business needs, whether you're a sole proprietor or hire employees. Get insured today and find peace of mind knowing your business can survive the unexpected.
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FAQs about Walmart insurance for sellers
Review answers to common questions about Walmart business insurance.
Is product liability insurance required for Walmart sellers?
All Walmart sellers should carry product liability insurance, and those who earn more than $100,000 in GMV annually are required to carry it.
This policy protects your small business against costly lawsuits related to your products. Every business in the supply chain can be held liable for harm caused by a product, which is why retailers, manufacturers, and wholesalers should carry this coverage.
Product liability insurance helps pay for legal costs related to defective products. That includes:
- Design defects, such as an unstable dresser that falls over and injures a child
- Manufacturer defects, such as a sharp edge on a product that should have been sanded down
- Marketing defects, such as a lack of warning labels that leads to an injury
It's also important to manage your risks to reduce the chance of a lawsuit in the first place. For example, you can prevent product lawsuits with a comprehensive quality assurance (QA) process and extensive product testing.
Product liability insurance is usually included in commercial general liability insurance, also called public liability insurance. In addition, you may want to consider product recall insurance, which helps pay for costly product recalls.
Does Walmart seller insurance protect against theft?
Homeowner's insurance won't cover losses that are related to your business, or it may provide only limited coverage. That's why you need dedicated commercial insurance to protect your business against theft and burglary.
Specifically, there are two types of commercial crime insurance that cover theft:
- Commercial property insurance: This policy covers stolen and damaged inventory and other business property at your main business location (not off-site locations). Also called business hazard insurance, you can often bundle this coverage with general liability insurance in a BOP for savings.
- Fidelity bond: A fidelity bond provides financial reimbursement in the event of employee theft, such as an illegal electronic funds transfer. You may also see it called employee dishonesty coverage.
Taking steps to prevent theft is also important. It can even save you money on your premium when you install a security system or take other measures recommended by your insurer.
What other types of insurance should Walmart sellers consider?
To fully protect your Walmart selling business, you may need additional types of insurance. Consider the following policies for coverage against other risks you might face:
- Business interruption insurance: Also called business income insurance, this add-on to commercial property insurance helps businesses recover from a temporary closure tied to a fire, storm, or other covered property claim.
- Equipment breakdown coverage: This policy protects your computers, electrical systems, production machinery, and other equipment from sudden malfunctions. It covers financial losses from short circuits, loss of air pressure or vacuum, or power surges that commercial property insurance typically excludes.
- Electronic data processing (EDP) insurance: This covers electronic data processing equipment, such as computers and POS systems, against data loss during a power surge, fire, natural disaster, or similar incident.
- Inland marine insurance: Inland marine insurance covers inventory kept at storage units, warehouses, and other off-site locations, along with products in transit.
Some of the above coverages can be added to a BOP as an endorsement, often with a discount. Learn about other ways that Walmart sellers can save money on business insurance.