Ecommerce moves fast—but lawsuits, recalls, and platform suspensions move even faster. And if you’re selling high-SKU products like auto parts without proper insurance? You might be one mistake away from a six-figure loss.
In this episode of Ecommerce Revamped, we sat down with ecommerce insurance expert Ashlin Hadden to break down the hidden risks of online selling and how to unlock smart savings by protecting your business. From product liability to platform compliance, Ashlin delivers the straight talk ecommerce businesses need to stay safe—and scale smarter.
Insurance Is the Missing Link in Your Ecommerce Growth Strategy
Running a high-SKU ecommerce business—especially in the auto ecommerce space—means managing a complex mix of inventory, suppliers, fulfillment centers, and marketplaces. But while most sellers obsess over logistics and pricing, very few think about risk—until it’s too late.
Ashlin sees this mistake all the time: sellers believe that because they don’t have a physical store, they don’t need insurance. But every time you list a product online, you’re exposing your brand to legal, financial, and operational vulnerabilities.
At a minimum, sellers need:
- • General Liability Insurance – Covers what you say or do as a business (like false advertising).
- • Product Liability Insurance – Covers what your products do to a person or their property (like a defective auto part causing injury).
One seller learned the hard way—after being hit with a product liability lawsuit in the baby product category, they lost over $120,000 simply because they assumed their manufacturer’s coverage would protect them. It didn’t. “They assumed insurance was optional. It wasn’t—until it was too late,” says Ashlin.
Whether you’re selling on Amazon, Walmart, eBay, or your own Miva-powered storefront, insurance isn’t optional—it’s foundational. Watch the Full Episode on YouTube >>
4 Ways Insurance Saves and Scales Your Auto Ecommerce Store
Protecting your revenue doesn’t just mean making sales—it means making sure those sales don’t come back to bite you. Ashlin outlines four essential ways ecommerce insurance helps you scale safely.
Product Liability Protection
Think your product is safe? Think again. One Amazon seller discovered how wrong they were after a customer injured themselves using their product—and even though it was fulfilled through Amazon, the seller still faced legal action. The case dragged on for three years and cost them nearly six figures.
Product liability insurance would’ve paid for legal defense and settlement, saving them time, money, and stress. “The policy doesn’t stop people from suing you—but it pays the best attorneys to defend you fast,” Ashlin explains.
Marketplace Coverage Compliance
Major platforms like Amazon, Walmart, and Chewy all have unique insurance requirements—especially for high-risk categories like automotive, baby products, or supplements.
Amazon, for example, requires liability insurance once you hit $10K in monthly sales for three consecutive months. Miss that requirement and you risk account suspension.
Ashlin’s team helps sellers stay compliant without juggling multiple policies. One policy can cover all marketplaces—if your business structure is consistent.
As she puts it: “Miva helps our clients run leaner, faster ecommerce operations. Pairing Miva with insurance protection? That’s how you scale smart.”
Cost-Saving Policy Tips
Those “instant quote” AI bots promising big savings? They often miss key industry-specific coverage.
A good ecommerce broker knows what’s essential, what’s overpriced, and how to build policies that scale with your business.
Ashlin’s tips:
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• Don’t inflate your revenue—it raises your premiums unnecessarily.
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• Avoid small claims unless you absolutely can’t afford the out-of-pocket cost.
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• Focus on catastrophic coverage—it’s what insurance is really for.
Risk Management for High-SKU Stores
If you're selling thousands of SKUs, the odds of a recall, defect, or error go up—dramatically. That’s why auto parts ecommerce platforms need specialized insurance that accounts for SKU complexity.
Ashlin also recommends recall insurance, especially for categories like food, supplements, and anything with an engine. This protects your inventory and your brand if regulators require you to pull products from shelves.
Ecommerce Success Means More Than Sales—It Means Stability
Selling online has never been more accessible—or more risky. But sellers who want to future-proof their business can’t afford to ignore insurance. The right policy helps you:
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• Defend against lawsuits (even frivolous ones)
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• Meet marketplace requirements
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• Reduce costly out-of-pocket settlements
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• Improve operational trust with partners and customers
And when you pair that protection with the best ecommerce platform—one that supports complex catalogs, platform migration, and automated workflows—you get a business built for growth and stability.
As one Miva merchant put it: “With Miva, we didn’t just move platforms—we gained performance, efficiency, and peace of mind. Insurance was the missing piece.”
Learn how Miva powers stable ecommerce growth >>
FAQ
Why do ecommerce sellers need insurance?
Because platforms like Amazon and Walmart require it—and lawsuits, product issues, or customer claims can destroy your margins if you’re not covered.
What type of insurance does an auto parts ecommerce store need?
At minimum: general liability and product liability. Depending on your structure, you may also need warehouse, inventory, or recall coverage.
Can Miva integrate with insurance compliance workflows?
Yes. Miva’s flexible platform makes it easy to manage product data, labeling, inventory, and order fulfillment in a way that aligns with insurance and regulatory requirements.
How does Miva help reduce risk for ecommerce businesses?
Miva eliminates plugin chaos, reduces downtime, and offers built-in performance and security features that support enterprise-level stability.
Where can I watch or listen to this episode?
Watch the full episode of Ecommerce Revamped featuring Ashlin Hadden.
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