Question 1

What is a common misconception about Product Liability for E-Commerce & DTC?

Accepted Answer

Dropshippers think they're not liable because they didn't make the product. They are 'sellers' under most state product-liability statutes — full strict-liability exposure.

Question 2

What happens if e-commerce & dtc don't have Product Liability?

Accepted Answer

A product you sold causes a small fire — $45K property damage claim. Even though you didn't make it, you're named in suit. Product liability defends and pays.

Question 3

What is a common misconception about Cyber Liability for E-Commerce & DTC?

Accepted Answer

Shopify/BigCommerce stores think 'the platform handles security.' You're still responsible for your accounts, app permissions, and customer data — and PCI fines flow through to merchants.

Question 4

What happens if e-commerce & dtc don't have Cyber Liability?

Accepted Answer

Skimmer injection on checkout exposes 6,000 cards — PCI fines, notification, monitoring: $290K. Cyber pays.

Question 5

What is a common misconception about Commercial Property for E-Commerce & DTC?

Accepted Answer

3PL warehouses don't insure your inventory. You need your own coverage.

Question 6

What happens if e-commerce & dtc don't have Commercial Property?

Accepted Answer

3PL warehouse fire destroys $180K of inventory. Your commercial property pays.

Question 7

What is a common misconception about General Liability for E-Commerce & DTC?

Accepted Answer

Online sellers think they don't need GL — they do for warehouse premises and advertising injury exposure.

Question 8

What happens if e-commerce & dtc don't have General Liability?

Accepted Answer

Visitor trips at warehouse — $9K. GL pays.

Question 9

What is a common misconception about Business Interruption for E-Commerce & DTC?

Accepted Answer

E-commerce thinks BI doesn't apply because they're 'online.' Warehouse/3PL fires can shut you down.

Question 10

What happens if e-commerce & dtc don't have Business Interruption?

Accepted Answer

3PL fire shuts down fulfillment 6 weeks; lost revenue $240K. BI pays with dependent property coverage.

E-Commerce & DTC Insurance Coverage Guide | RISKX