For founders who make & sell things

Ecommerce & consumer-brand founder insurance

Q: I sell on Amazon/Etsy — am I not covered by them?

No. Marketplaces require you to hold liability cover and can ask for proof; their own policies don’t insure your product or your brand.

If you’ve built a product brand — sold direct, through marketplaces or into retail — your risks look nothing like a software startup’s. A physical product can hurt someone or have to be recalled; stock can be lost or stolen; and you’ve probably signed personally for warehousing or inventory. Consumer-brand founders need cover that starts with the product, not the code.

Part of: Founder insurance at Apex

In short

Cover for ecommerce and consumer-brand founders: product and public liability (including recall), stock and goods in transit, cyber and customer-data protection, and the personal exposures — guarantees on stock and leases — that come with building a physical brand.

Why a product founder isn’t a tech founder

Most “startup insurance” is written for software: professional indemnity, cyber, maybe D&O. A consumer brand adds a whole physical layer — goods that can injure a customer, stock sitting in a warehouse, couriers, and returns. The single biggest gap we see is product liability: if something you sell causes injury or damage, the claim lands on you, and a generic tech policy simply won’t answer it.

What the cover includes

Product liability — injury or damage caused by something you’ve made, imported or sold.
Product recall — the cost of getting a faulty batch back and out of the market.
Public liability — for pop-ups, markets, events and anyone who visits.
Stock and goods in transit — inventory in storage and on the move.
Cyber and customer-data cover — card data, the store platform, and the breach costs that follow.
Professional indemnity — if you give advice or make claims about what your product does.
The founder-personal layer — personal guarantees on stock, leases and finance. See founder insurance.

However you sell

Direct-to-consumer / own online store
Marketplaces (Amazon, Etsy, eBay) — see marketplace & platform cover
Wholesale into retailers (who will ask you for cover limits)
Subscription and DTC food, drink, beauty and apparel
Pop-ups, markets and events

Where consumer-brand founders get caught out

Assuming a tech-style policy covers a physical product — it doesn’t.
No recall cover, so a faulty batch becomes a personal cash crisis.
Underinsured stock, or stock excluded in transit.
A retailer or marketplace demands a liability limit you can’t evidence, and the deal stalls.
Personal guarantees on inventory finance or a warehouse lease — the founder’s own exposure, ignored.

Related founder cover

Founder insuranceThe full founder picture Personal guarantee coverStock & lease guarantees Cyber insuranceStore & customer data Marketplace coverSelling via platforms

Frequently asked

Do ecommerce founders need product liability insurance?

Almost always. If you make, import or sell a physical product and it injures someone or damages property, the claim comes to you — and a software-style startup policy won’t respond. Product liability is the core cover for a consumer brand.

What is product recall cover?

It pays the cost of recovering a faulty or unsafe batch from customers and the market — notification, logistics, disposal and replacement. For a small brand, a recall without cover can be an extinction-level expense.

My retailer/marketplace is asking for insurance — what do they want?

Usually evidence of public and product liability to a set limit (often £2m–£5m). We can arrange it and provide the certificate so the deal isn’t held up.

Is my stock covered in a third-party warehouse or in transit?

It can be, but it’s often where cheap policies fall down. We make sure stock is insured where it actually sits and while it moves.

I sell on Amazon/Etsy — am I not covered by them?

No. Marketplaces require you to hold liability cover and can ask for proof; their own policies don’t insure your product or your brand.

Cover that starts with your product

Tell us what you sell and how — online, wholesale, marketplace — and we’ll arrange the product, stock and liability cover a consumer brand actually needs. Or call 0117 325 0027.

Get a quote Call 0117 325 0027

Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances or the law, and it does not guarantee that cover will be available or on what terms.