Selling through TikTok Shop has opened a new revenue stream for thousands of entrepreneurs across the country. Whether you’re drop-shipping, selling handmade goods or moving product from your own inventory, you must account for certain risks and exposures.
What Insurance Is Right for TikTok Shop Sellers? 
Sellers on TikTok Shop may need versatile business insurance that addresses multiple types of risks and exposures. In many cases, coverage needs may resemble the same core coverages needed by other e-commerce sellers, such as those on Amazon, Etsy or Shopify. A general liability policy is a key starting point for most, as it typically includes product liability coverage, which can help manage bodily injury and property damage claims that could arise from a product you sold.
Other Coverages to Consider
Depending on how your business is set up, you may need several types of insurance. Consider how the following may apply:
- Commercial property insurance can cover offices, equipment, electronics and other physical items used by your business.
- Workers’ compensation insurance may be required if you have employees who help produce goods or fulfill orders.
- Business interruption insurance can help you manage ongoing bills and recover lost revenue if a covered incident disrupts your selling operations.
- Cyber liability insurance can assist with the aftermath of data breaches and other cyber incidents, including those affecting customers’ sensitive information.
- Business owners policies (BOPs) typically bundle general liability, commercial property and business interruption insurance and may be a cost-effective and convenient option for small- and medium-sized TikTok Shop businesses.
If you operate out of your home, you should be aware that standard homeowners and renters insurance policies typically exclude business operations. As such, damage to property used for business and liability claims arising from commercial activities will not be covered unless you have endorsements or other policies.
Get the Right Coverage for Your Business
Contact Well Insurance to talk through your options. We can help you explore policies available through multiple carriers to find coverage that fits your business.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.