diff --git a/includes/class-wc-install.php b/includes/class-wc-install.php
index 93ab40b0278..d81b86b185a 100644
--- a/includes/class-wc-install.php
+++ b/includes/class-wc-install.php
@@ -1332,7 +1332,12 @@ CREATE TABLE {$wpdb->prefix}wc_reserved_stock (
 			'post_content'   => '',
 			'post_status'    => 'inherit',
 		);
-		$attach_id  = wp_insert_attachment( $attachment, $filename );
+
+		$attach_id = wp_insert_attachment( $attachment, $filename );
+		if ( is_wp_error( $attach_id ) ) {
+			update_option( 'woocommerce_placeholder_image', 0 );
+			return;
+		}
 
 		update_option( 'woocommerce_placeholder_image', $attach_id );