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First, the bottom line: Insurance can lower your business risk and reduce your personal liability, but it is also expensive, and many types may be unnecessary for smaller eBay businesses. For instance, you may need property insurance; you are less likely to need liability insurance. In certain circumstances, for example, leasing commercial space or borrowing from a commercial lender, the landlord or lender may have insurance requirements that you must fulfill in order to enter into the contract.

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