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E-Commerce Insurance: Ecommerce Business Insurance Quotes From $5

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In this day and age and especially during this COVID 19 age, e-commerce business is on the rise. Whether you run an Amazon, Shopify, e-bay, Alibaba, Etsy or any other kind of ecommerce business, the last thing you want to wake up to is a letter from a client suing you for damages. E-commerce insurance may save your business' life in such occasions. In this guide we’re going to explore eCommerce business insurance, its different forms, costs and some of the best companies that offer it, as well as some of the key differences between its different forms, that you should know about ahead of making your eCommerce insurance quote comparison and buying it online through our free comparison tool.

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E-Commerce Liability Insurance

E-commerce insurance is very similar to online store insurance and retail insuranceEcommerce Liability insurance is a category that contains several specific forms of insurance for ecommerce businesses. In this section, we’re going to take a look at the differences between ecommerce product liability insurance, cyber liability insurance, and general liability insurance. This should make it easier to decide what will work best for your online business.

Ecommerce General Liability Insurance

General liability e-commerce insurance coverage is the basis for your ecommerce business risk management plan. It covers 3rd party property damage and bodily injury claims. If anyone visits your office and gets injured, including customers, vendors and business partners, which can be of variable importance for an ecommerce company, general liability coverage will cover any financial expenses that result from this third party lawsuit. Even if you operate your ecommerce business from home, don't falsely assume that your home insurance will cover you, as it mostly does not cover commercial claims, so better purchase a basic general liability insurance coverage in that case as well.

In most cases, e-commerce general liability insurance will also cover any property damage someone suffered while on your business premises. 

Most general liability insurance policies may also include product liability coverage, which will be covered in the next section. 

The average e-commerce business general liability insurance cost is about $33 per month or $396 per year.

Product Liability Insurance for Ecommerce

 for e-commerce business is the most important coverage for it, since products are the core of your business, and as stated above, it may be included in your e-commerce business general liability insurance policy in most cases.

Product liability insurance for ecommerce business protects it from any potential damages that are caused to customers due to malfunction in a product that your business has manufactured or a product that carries your business name. To name a few things that may cause damage/injury to customers and major risks and liabilities to your e-commerce business are design flaws, product defects, bad instructions, and more.

The damages caused by your product can range from property damage, such as if your product started a fire that burned down one of your customers’ homes, but it can also include bodily harm, for example when a customer got your package and cut himself when opening it, the cut got infected, and now he's asking for you to cover his cost of visit to the doctor. 


Before initiating any business with them, you will also be wise to make sure your vendors/suppliers are adequately insured. Ask for their proof of insurance with your ecommerce business as an additional insured. This reassures that your business is more protected, lowers your own risk, which lowers your e-commerce product liability insurance cost consequently. The more risk is sent back to your suppliers, the lower your own ecommerce business product liability insurance cost will be. 

Most product liability policies cost about $100 per month or $1200 per year. Product liability insurance may be included in most general liability insurance for e-commerce businesses policies.

Cyber Liability Insurance for Ecommerce Businesses

Cyber liability insurance protects e-commerce businesses and all other online-first businesses from the associated risks that they are most vulnerable to. Due to the nature of ecommerce business, gathering customer info and processing a great amount of transactions, they became a main target for hackers and cybercrime. In the event of a data breach or if hackers accessed or deleted any of the sensitive data that your ecommerce business was holding on to, be it customer data or other kind, a comprehensive cyber liability insurance makes sure that your business is fully covered financially. This include any potential lawsuits, fines, settlements, investigation expenses caused by a data breach or cyber attack. 

There are a few different things that cyber liability insurance covers, including damages caused to your clients by data loss, etc.

However, cyber liability insurance can also pay out so that you can reacquire or recover data that your business needs to operate after it was hacked. Of course, if the data was unique, there’s often nothing that one of these policies can do to help you out, so always make sure that you have backups.

Cyber liability insurance tends to cost about $120 per month or $1,440 per year.

Tech E&O Insurance for Ecommerce

Last but not least is Technology errors and omissions insurance, which covers your e-commerce business from any claims about negligence, errors, oversights, including (but not limited to) claims related to your product's failure to perform its purpose, undelivered services, not following deadlines, breach of contract, incomplete work, and more.

The average Tech E&O insurance cost is around $60 per month or $720 per year for small businesses.

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Ecommerce Shipping Insurance

Sometimes referred to as ecommerce sales insurance, this kind of coverage will protect you in case any of your products are stolen or damaged while they’re on the way to your customer. Ecommerce businesses typically invest in these policies when they sell high volume or high-value products. The cost of shipping insurance ranges from $0.50 per $100 in product value to $1 per $100.


Shopify Business Insurance

When shopping for insurance e-commerce platform matters because they may have specific stipulations about the kind of coverage the businesses selling on their platform should have. This is true for shopify insurance as it is to Amazon ecommerce insurance, e-bay business insurance, Etsy e-commerce business insurance, Alibaba insurance or any other e-commerce platform insurance. Shopify doesn’t have any specific forms of insurance that they require their sellers to have.

That being said, there are a few types of insurance coverage that Shopify recommends for the businesses that are selling on their platform. These included property insurance, business interruption insurance, commercial umbrella insurance, and more. If you’d like to learn more about recommended Shopify insurance, feel free to check out their list that you can find here.

Shopify Cyber Insurance

While Shopify recommends a wide range of insurance, many store owners wonder whether it’s worth getting their hands on cyber insurance if they work on the platform. Shopify does a good job of ensuring that their clients’ details are as secure as possible, to the point that customer data isn’t even stored on their servers.

What this means is that if someone stages an attack against Shopify, then they won’t have access to your customer information. The only case in which it would make sense to have cyber insurance is if the login info for your store is compromised, since that is what attackers will need to access sensitive data relevant to your store.



Best Ecommerce Business Insurance

Let’s start off by taking a look at some of the most popular e-commerce insurance companies so you have a good starting point with which to begin your search for the best quotes available. We’re going to look at Hiscox, The Hartford, and Nationwide so that we can compare and contrast their services.

Hiscox E-Commerce Insurance

If you run a smaller business and you’re looking for ecommerce insurance, then you usually can’t go wrong with Hiscox. They offer a wide range of policy types and even offer breach management and cybersecurity resources with their policies. One of Hiscox’s downsides is that they have relatively limited experience working with businesses that are online-only.

The Hartford E-Commerce Insurance

The Hartford specializes in working with existing brick and mortar retailers who are looking for a way to break into the ecommerce industry. They offer a huge variety of different coverage options that you can use to customize your ecommerce business insurance policy, though they are held back by their lack of online chat.

Nationwide E-Commerce Insurance

Nationwide’s main contribution to the ecommerce insurance policy space is their cyber policy. This allows ecommerce businesses to protect themselves from identity theft damages, and it will also pay out for both data recovery and cyber protection. One of Nationwide’s major downsides is their lack of online customer support.

Compare E-Commerce Insurance Quotes

Get all the best quotes from leading providers in a click of a button!

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