Ecommerce Insurance

Are you someone who sells products and/or services online? Online retailer insurance protects your small business in case anything were to happen while running your online store. It protects you both financially and legally, giving you the peace of mind that if something were to happen, you’re covered.

Ecommerce Insurance Requirements

Whether you’re a small online retailer who sells to a few thousand people using your own website or a larger business that sells on one of today’s top-selling platforms, you need business insurance protection. For example, with Amazon, you’re actually required to have general liability insurance. Even though Shopify and Etsy don’t technically mandate that you carry business insurance, it’s still a great idea to have.

Because there are a few types of ecommerce insurance policies available, it can be hard to know which type of coverage is best for you. Not to worry! We’ve highlighted a few very important coverages below.

Ecommerce Liability Insurance

General liability insurancecovers you in the event of third-party bodily injury. If something happens, medical bills, legal fees, and settlement costs are covered. Ecommerce liability insurance also covers property damage, so if you were to accidentally break someone’s property during the course of business, it would cover the replacement or repair costs, which could really come in handy at some point.

General liability also covers third-party advertising injury claims. Basically, that’s a confusing way of saying libel, slander, and copyright infringement.

Online retailers pay an average of $25/month for general liability insurance. That’s only $300/year.

Ecommerce Property insurance

Property insurance helps cover your financial losses if your business inventory, equipment, or other physical assets are damaged. It only covers certain types of events, so be sure to understand what your policy covers, and what it doesn’t. This type of business insurance for online retailers not only covers damages, it also covers operating expenses and lost income during repair or replacement. Wow!

Property insurance perks include paying for building damages and equipment breakdowns, as well as receiving financial support should you have to pause your operation while things get repaired.

Let’s say you’re an online jewelry retailer. A fire destroys your property. Business property insurance helps cover your replacement costs.

Many online retailers pay around $30/month for business property insurance. That’s about $360/year.

The amount of inventory you could lose due to a burst pipe.
Or you could pay an average of $360/year for property insurance, which would help with replacement and repair costs.

Cyber insurance for ecommerce businesses

Cyber insurance covers financial losses if you have a cyber-attack. Data breaches, ransomware attacks, and hacking are some of the common risks with doing business online. Cyber attackers not only steal your information, they cause downtime, which affects your bottom line. If you ever have a cyber-attack, you’ll want help covering your losses. You’ll also want support to get you back up and running as fast as possible. Otherwise, it could put you out of business.

Cyber insurance benefits can cover the following expenses – notifying customers, monitoring credit, legal fees, recovery costs, resource support, and fines.

If a hacker breaches your computer, exposing your clients’ personal data, cyber insurance helps cover the costs associated with experiencing a cyber-attack on your business.

Additional coverages

  • Professional liability insurance is another online retailer insurance option that covers online retailers who make a mistake in their professional services. Negligence and failure to deliver promised goods and services are a few things covered by this policy.
  • While you may be facing less risk than someone that’s on a job site, workers’ comp insurance covers workplace illnesses and injuries, even for something like carpal tunnel syndrome. Or, let’s say you’re doing leather work and slice your hand. Medical bills will be covered. Learn about workers’ comp costs.
  • A business owner’s policy (BOP) combines general liability and commercial property insurance into one bundled policy, and at a lesser price than purchasing each coverage on its own. Lean about BOP costs.

Ecommerce Insurance Costs

How much will your insurance cost? It depends.

  • Where is your business located?
  • How many products or services do you offer?
  • How many employees do you have?
  • What’s the worth of your business assets?
  • How much coverage do you need?
  • Do you have a history of previous claims?

Our insurance experts can give you ecommerce insurance quotes based on your exact needs! All you have to do is fill out one quick form and we’ll compare to find you the best prices, at  no cost to you.

In the meantime, learn more about how much business insurance costs.

Compare ecommerce insurance quotes to save money.

We work with top providers to find ecommerce sellers the best coverage at the right price. Just fill out this quick quote form and you’ll be on your way!

Not ready yet? Learn how to save on business insurance.