Do Amazon & Etsy Sellers Need Business Insurance? (Texas Guide)

If you sell products on Amazon, Etsy, or any ecommerce platform in Texas, business insurance isn't just smart — in some cases, it's required. Here's what you need to know.

Amazon's Insurance Requirements

    Amazon's Business Solutions Agreement requires sellers who exceed $10,000 in sales in any month to carry a **commercial general liability policy of at least $1 million per occurrence** and name Amazon as an additional insured. Failure to comply can result in account suspension.

Even below that threshold, product liability exposure is real. If a customer claims your product injured them or damaged their property, they can sue you personally — not Amazon.

Why Etsy & Ecommerce Sellers Also Need Coverage

    Etsy does not require insurance, but consider this: you're a manufacturer and retailer of your own products. If a handmade candle causes a fire, a skincare product causes a reaction, or a toy injures a child, the liability falls on you. General liability insurance covers these product liability claims.

Common risks for online sellers:

• Product causes bodily injury to a buyer

• Product damages a customer's property

• Copyright or trademark infringement claims in advertising

• Home-based business covered under a personal homeowners policy? — Usually not. Most homeowners policies exclude business activities.

What Policy Do Online Sellers Need?

    Most ecommerce sellers need a **Commercial General Liability (CGL)** policy with products liability coverage. If you work from home, you may also want a business owner's policy (BOP) that includes property coverage for your inventory and equipment.

Get Covered Instantly Through Argo + Thimble

    Argo Insurance works with Thimble to provide instant general liability quotes for Amazon sellers, Etsy sellers, and ecommerce businesses in Texas. Apply online in minutes, get your certificate of insurance immediately, and add Amazon as an additional insured right away.

Need help with the additional insured endorsement or have questions about coverage limits? Call Argo at (346) 241-0000 — we're your agent of record and we'll walk you through it. Or visit our small business insurance page to get started.