Why do Wayfair sellers need insurance?
Wayfair requires its sellers to carry insurance, but that's not the only reason you need it. Business insurance helps your company recover quickly after a fire at your warehouse, a worker injury, or a data breach. State laws, commercial leases, and lenders may also require coverage.
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With Insureon, Wayfair sellers can save money on insurance by comparing quotes from top-rated providers.
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What types of business insurance do Wayfair sellers need?
These policies protect against the most common risks of selling on Wayfair.
Business owner's policy
A business owner's policy, or BOP, is a cost-effective way for Wayfair sellers to buy general liability insurance 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.
- Injuries caused by a product
- Property damage caused by a product
- Copyright infringement
Workers’ compensation insurance
Most states require workers' comp for Wayfair suppliers that 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 Wayfair 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 Wayfair 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 Wayfair seller's delivery truck or other vehicle.
- Injuries caused to another person
- Property damage caused by your vehicle
- Vehicle theft and vandalism
How much does Wayfair seller insurance cost?
Wayfair sellers who have only a few employees can expect to pay less for insurance than larger businesses.
Factors that affect Wayfair sellers insurance cost include:
- Products you sell, such as furniture, appliances, or home goods
- Marketplaces where you operate
- Business equipment and property
- Number of employees
- Types of insurance purchased
- Policy limits and deductibles
- Claims history
What are Wayfair seller insurance requirements?
Wayfair requires insurance coverage for all businesses selling through its platform.
Specifically, Wayfair requires its sellers and dropship suppliers to:
- Maintain general liability insurance. Sellers on Wayfair must carry a general liability insurance policy that includes product liability insurance, with a $1 million per-occurrence limit and a $2 million general aggregate limit. General liability insurance often includes product liability insurance, or you can add it as an endorsement.
- Name Wayfair as an additional insured. Your insurance policies must name Wayfair as an additional insured to extend your coverage to include them.
- Provide Wayfair with a certificate of insurance (COI). Sellers may need to send a certificate of insurance to Wayfair to prove that they have the requisite coverage.
Wayfair's Beginner's Guide offers an onboarding checklist with details about insurance, shipping, and other requirements. Sellers are also expected to comply with the Wayfair Supplier Code of Conduct which outlines business practices.
How do I get Wayfair seller insurance?
It's easy to get Wayfair seller insurance and e-commerce insurance if you have your business information on hand. Our application will ask for basic facts about your small business, 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 insurance for retailers who sell on Wayfair, eBay, Etsy, Amazon, Walmart, Shopify, and other platforms, whether you're a sole proprietor or an employer. Get insured today and find peace of mind knowing your business can survive the unexpected.
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FAQs about Wayfair insurance for sellers
Review answers to common questions about Wayfair business insurance.
Is product liability insurance required for Wayfair sellers?
Yes, Wayfair sellers must carry product liability insurance in addition to general liability insurance. This policy provides financial protection against lawsuits related to your products, such as a bookcase that tips over and injures a child.
Product liability insurance can help cover bodily injuries and property damage caused by defective products. That includes:
- Design defects, such as unstable furniture
- Manufacturing defects, such as a missing component
- Marketing defects, such as errors in a product listing
Every retailer, manufacturer, and wholesaler should carry this coverage, as anyone in the supply chain could be held liable for harm caused by a product.
In addition to carrying insurance, it's important to manage your risks. Extensive product testing, warning labels, and quality assurance processes can go a long way toward preventing lawsuits. This helps keep your customers safe, along with avoiding the hassles and costs associated with a lawsuit.
Product liability insurance is usually included with general liability insurance, sometimes called public liability insurance. You can also purchase product recall insurance to protect against costly product recalls. If these types of protection aren't already included, you should be able to add them to your policy as riders.
Does Wayfair seller insurance protect against theft?
The insurance policies required by Wayfair don't protect your warehouse or your inventory, which is why you need additional coverage. These policies can help your business recover from burglaries, vandalism, and similar incidents:
- Commercial property insurance: This policy provides financial compensation for furniture and other business property that's stolen or damaged on your premises (but not other locations). It's also called business hazard insurance. You can bundle it with general liability coverage in a BOP for savings.
- Fidelity bond: Also called employee dishonesty coverage, this type of commercial crime insurance provides financial protection against employees who steal from your business or a customer.
In addition to insurance, it's important to take steps to prevent theft. In some cases, you can even reduce your premium by implementing security measures recommended by your insurer.
What other types of insurance policies should Wayfair sellers consider?
Wayfair sellers should consider additional types of coverage to protect against other costly incidents that could disrupt their business. The following policies are part of a robust risk management plan for any retailer:
- Business interruption insurance: This policy helps Wayfair suppliers recover from a temporary closure tied to a fire, storm, or other covered property claim. It's sometimes called business income insurance.
- Equipment breakdown coverage: This policy protects your Wayfair store's 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: Be aware that property insurance only covers items at your primary business location. Inland marine insurance covers items at storage units, warehouses, and other off-site locations, along with items in transit.
Some of the above coverages can be added to a BOP, often with a discount. Learn about other ways you can save money on small business insurance.