Top E-Commerce Insurance Options for 2023
Top E-Commerce Insurance Options for 2023

Top E-Commerce Insurance Options for 2023

Top E-Commerce Insurance Options for 2023 Companies that sell products online commonly need two number one styles of business insurance: Commercial legal responsibility coverage and product legal responsibility insurance, which is a shape of legal responsibility coverage for the products you sell and distribute.

We analyzed proceedings approximately liability coverage for the most important sellers of fashionable legal responsibility coverage to discover the pleasant e-commerce insurance.

Comparison: Best E-Commerce Insurance

1. Allstate

2. CNA

3. Farmers


five.The Hanover

6. Westfield

7. Markel


9. Chubb

10. Travelers

Types of E-Commerce Insurance

Like any enterprise proprietor, online sellers face challenges that include facts breaches, stock theft and misplaced earnings if you may’t open your commercial enterprise for a cause consisting of a fire. E-commerce coverage is a sort of small enterprise insurance that covers the kinds of troubles your enterprise faces.

Here are some kinds of e-commerce coverage to recall.

Business Interruption Insurance

Business interruption insurance—also called business income coverage—covers your e-commerce commercial enterprise whilst it is unable to open because of an event protected using the coverage, such as a fireplace or typhoon harm. This insurance reimburses the commercial enterprise for lost profits and will pay for relocation fees in case you want to briefly pass your e-trade enterprise to a brand new location.

Business Property Insurance

Business assets coverage covers your enterprise assets if it is stolen, damaged, or destroyed because of a problem blanketed with the aid of your policy, along with a fireplace. This includes belongings like your business premises, machinery, gear, stock, computer systems, workplace furniture, and crucial files.

Business assets insurance is likewise called industrial assets insurance.

Commercial Auto Insurance

If you use an automobile including a car, truck, or van for commercial enterprise, you likely need a business car coverage policy. For instance, using your merchandise to the submit workplace for transport is considered commercial enterprise use. Your non-public automobile insurance policy does not cover injuries that happen while you’re using your vehicle for painting purposes.

Cyber Liability Insurance

Cyber liability coverage commonly covers a commercial enterprise for cyber threats and information breaches. It covers prices inclusive of statistics healing, identity recuperation, and investigative services. This insurance is also referred to as “cyber danger coverage.” It’s an awesome choice if your e-trade enterprise collects touchy facts such as Social Security numbers, credit score card numbers, financial institution account numbers, and driver’s license records.

General Liability Insurance

General liability coverage covers your e-commerce enterprise for accidental injuries and belongings damage to others. It also covers court cases for reputational damage, copyright infringement, and advertising damage.

For example, if some other commercial enterprise sues your enterprise for defaming it in an ad, the general liability portion of an enterprise coverage policy will cover your prison prices.

Professional Liability Insurance

Professional legal responsibility coverage covers claims of errors and mistakes made with the aid of your e-trade commercial enterprise, even though the claim has no benefit. For instance, if a consumer claims that your e-commerce business did not deliver a product on time and brought about a financial loss, your professional liability insurance will cover your prison expenses.

Professional liability insurance is also known as mistakes and omissions insurance.

Product Liability Insurance

Product liability insurance covers your e-commerce commercial enterprise if a product you created, synthetic or sold doesn’t paint properly and reasons belongings damage or physical injury to someone else, even though the purchaser makes use of a product incorrectly.

For instance, in case your e-commerce commercial enterprise sells a defective product that outcomes in damage to a purchaser, your product liability coverage will cover their scientific bills and your prison costs.

Workers’ Compensation Insurance

Workers compensation coverage covers employees who are hurt or emerge as ill because of their jobs. It will pay for costs which include misplaced earnings, clinical payments, and bodily therapy. Most states require businesses to have this coverage, even supposing they most effectively have one worker.

How Much Does E-Commerce Insurance Cost?

The cost of standard legal responsibility insurance for e-commerce businesses is between $23 to $31 consistently per month, in keeping with Next Insurance.

Your e-trade insurance fee will depend upon elements inclusive of:

  • Type of e-trade keep
  • Business revenue amount
  • Number of personnel
  • Location
  • Claim records
  • Type of coverages
  • Policy information, limits, and deductibles

How to Get E-Commerce Insurance

You can get e-commerce coverage by way of talking to an agent or going online to get quotes and buy a policy that fits your requirements. Here are some guidelines to help you determine your wishes and get e-commerce coverage.

  • Bundle your policies. A top way to keep your e-commerce coverage is via purchasing enterprise owner coverage (BOP). A BOP includes fashionable legal responsibility insurance, commercial enterprise income insurance, and commercial belongings insurance. A BOP is typically cheaper than buying every insurance kind one by one.
  • Evaluate your business’s exposure to danger. Every e-commerce commercial enterprise faces exceptional risks inherent to its enterprise. The insurance types you choose must deal with these dangers. For example, you need product legal responsibility coverage to cover harm and asset damage proceedings stemming from defective merchandise.
  • Regularly evaluate your threat factors. As your e-trade enterprise expands, your liabilities may additionally be exchanged. Hiring extra employees or diversifying your range of offerings can create new dangers. It’s smart to re-evaluate your threat profile annually and speak together with your coverage agent to discover in case you require additional coverage.
  • Explore your alternatives. Insurance vendors have particular formulas for calculating your insurance charges. This manner that now not all policies are priced the same. Comparing quotes for small enterprise coverage from numerous insurers is essential. You can gather unfastened rates online or by way of consulting an unbiased coverage agent.

Examples of E-Commerce Insurance Requirements

Some online retailers (including Amazon) require sellers to have small commercial enterprise coverage, but others (including Etsy) do not. Here are examples of e-trade insurance requirements.


Amazon requires its Pro Merchants and sellers with more than $10,000 in sales in line with month to have general legal responsibility insurance and industrial umbrella insurance. Each policy needs to have not less than $1 million per prevalence and in mixture limit.

You ought to observe Amazon’s insurance necessities within 30 days and offer Amazon the certificate of coverage, full coverage coverage, and other files upon their request.


Etsy does not require its dealers to have small business coverage. But you could want to consider coverage along with popular liability insurance and product liability coverage to cover problems such as unintended accidents to others and defective products.


Shopify no longer requires its dealers to have small enterprise insurance. But insurance types inclusive of fashionable liability coverage and product legal responsibility insurance are nevertheless a good idea. For instance, if a product you promote is faulty and causes an injury to a person else, your product’s legal responsibility insurance will cover your criminal prices.


Walmart calls for companies that promote its merchandise online or in stores to have the following sorts of small commercial enterprise coverage:

  • General liability insurance (minimal $1 million consistent with prevalence, $2 million combination)
  • Commercial umbrella coverage
  • Product liability coverage
  • Commercial automobile insurance (minimum $1 million in line with prevalence)
  • Workers repayment coverage (statutory limits or $1 million if no statutory necessities, and $1 million in organization’s legal responsibility insurance)

You are required to offer a certificate of coverage to Walmart.


We scored the largest business insurance businesses based on grievance statistics for commercial legal responsibility coverage. Complaint information is based totally on court cases upheld by using country insurance departments throughout the United States of America and collected by using the National Association of Insurance Commissioners.

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