eBay Seller Insurance: Everything You Need to Know Before You Start Selling – Insurance Solutions for eCommerce | Spott eCommerce. Insurance.

Presently, eBay does not require its sellers to buy liability insurance. So, eBay seller insurance is not mandatory for you to sell on eBay. However, when it comes to grievance redressal, eBay will hold your funds till the issue is resolved or deduct the disputed amount from your eBay seller account. If the issue escalates, the buyer can sue your business. eBay does have a Seller Protection Policy in place that protects eBay sellers from issues that eBay calls “outside your control.”

It is also important to note that in its User Agreement, eBay clearly states:

“In addition, to the extent permitted by applicable law, in no event will eBay….be liable to you or any third party under any claim at law or in equity for any consequential damages or losses (including, but not limited to, loss of money, goodwill or reputation, profits, other intangible losses, or any special, indirect, or consequential damages), and all such damages or losses are expressly excluded by this agreement whether or not they were foreseeable or eBay was advised of such damages or losses.”

Due to the limited nature of the Seller Protection Policy and the business policy of eBay UK, more often than not, the onus to protect an eBay business falls squarely on the eBay sellers. You have to ensure that you can pay for the product liability claims. Otherwise, disgruntled customers can bring your budding business to a grinding halt.

A rapidly growing number of eBay sellers around the globe already invest in eBay seller insurance to safeguard their business. So, if you are an eBay seller, you should know the various categories of insurance products available to you and how they can protect your business interests.