General Liability vs Product Liability – Where Do You Stand?

By Ashlin Hadden

Owner, Ashlin Hadden Insurance

As an online seller, you have heard me preaching about insurance for your business now for a few years. And you now know you need insurance to cover your business in case of a lawsuit. But, there are always some questions surrounding getting insurance as a business owner and online seller. Some questions we hear often is, how much coverage do I need? What kind of coverage do I need? And, naturally, what exactly do I need the insurance to cover? If you are a reseller, wholesaler, or you are private labeling and selling products under your own brand, you are going to need general liability and product liability insurance. In the following article, I will cover the definitions of general liability and product liability. What each form of liability will cover, how they work in conjunction with each other, and ultimately the risk of not having proper liability insurance in place. This article will go over the main coverage you need as a seller. You may find yourself needing more coverage because every scenario is different, but if you sell online, you must have general liability and product liability to protect your assets.

General Liability insurance is going to follow your business. You can be anywhere in the world and your liability insurance will kick in for you when necessary. Commercial liability insurance is a synonymous with the term general liability insurance. For any business owner you will need Commercial General Liability Insurance (CGL). This insurance is specifically designed to make sure if you are ever in a lawsuit, you can file a claim under your insurance and don’t have to pay out of pocket for covered losses. As an online retailer the overall goal (if you are lucky) is get your business removed from the lawsuit all together. A lawsuit can cost quite a bit of money and can put a business owner out of business or go into bankruptcy very easily. Therefore, having insurance is so important for all online sellers. It is not out of the norm to see a small business go under or go into huge debt due to one lawsuit claim.


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Ashlin Hadden

Independent owner of Ashlin Hadden Insurance, an agency serving customers nationwide with business insurance needs. Ashlin Hadden Insurance can serve all insurance needs related to General Liability, Product Liability, Workers Comp Insurance, Cargo Insurance, and all Personal Insurance.

By |2019-05-09T14:39:55-05:00May 9th, 2019|Latest Articles|