Do e-commerce webstores need liability insurance for customers that want to sue?

Question

if e-commerce webstores need liability insurance for the disgruntled customers that want to sue them, where can I find this type of insurance and how much does it cost?

Answer 1

You can find it through a local, independent agent.   Pricing starts at $500, and goes up from there, depending on the type of product and your gross sales.

You only need liability coverage, if you want defense and/or judgement cost coverage for the lawsuit.  No one "requires" you to carry it.

Answer 2

When you say you need liability insurance "for disgruntled customers" you need to be aware that liability insurance covers you against lawsuits alleging that your product caused bodily injury or property damage. It doesn't cover you from a disgruntled customer who is unhappy with your product or upset with your service.

That being said it is certainly a good idea to carry liability insurance because when you are dealing with the public there is always someone out there who is looking to allege that you caused them injury.

I always told my clients that if nothing else your liability insurance policy would provide defense coverage even when the claim made against you is without merit.

Cost of your coverage? You don't mention what your selling but consider what would it cost you to hire an attorney to to respond to even a frivolous claim? At least $300 to $400 dollars an hour.

Simple answer, yes, you need liability insurance.