eBay was the world’s second most visited eCommerce marketplace in 2022. The popularity of the platform has led many to start selling and finding success. However, 10% of all packages disappear without explanation in major US cities. This is just one of the many challenges that eBay sellers face.
Just like selling in Amazon, insurance might be a requirement for selling on eBay safely. A successful business strategy for starting eBay sellers is a comprehensive insurance policy that can protect them from many different kinds of liability. In this article, we will talk about ebay seller insurance.
eBay and the transport services it uses offers shipping insurance that can cover packages that sellers send out. Below is a breakdown of the different coverages offered.
| USPS | UPS | FedEx | ShipCover |
|---|---|---|---|
| Automatically covers damaged and lost packages up to $100 | Base $100 liability coverage | Offers $100 liability coverage | eBays shipping insurance that covers packages of up to $100 at a price of $1.70 |
| Additional liability can be purchased for a shipping label up to $5,000 | Can purchase up to $999 in coverage value | Can purchase up to $2,000 of coverage from FedEx | Additional coverage can be purchased up to $1,000 |
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $2,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $2,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $300,000/$1,000,000 | $300,000 | $100,000 | $100,000 | $1,000,000 |
| Waiver of subrogation included? | Yes | No | Included | Can be included | No |
| Hired/non-owned auto liability coverage included? | Yes | No | No | Can be included | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Can be included | Can be included |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 | $0 | $0 |
eBay liability insurance with general liability coverage grants the policyholder protection from third-party injuries and property damage. Some situations where this policy can be helpful include:
A member of the public wanders onto your business property and gets injured, filing a lawsuit
A product that you send out causes a customer injury
A customer accuses you of slander based on disparaging remarks you make
General liability policies can be complemented by other policies to get coverage for more incidents. Here are some of the common add-ons to the policy:
Tools and equipment–Protects your business tools when they are damaged, lost, or stolen
HNOA coverage–Hired/non-owned auto liability coverage accounts for the costs of accidents caused by a vehicle you hired or borrowed for business purposes
General liability policies have a coverage limit of $1 million per occurrence and $2 million aggregate. This limit will be different depending on the cost of your policy and what your insurer provides.
No, you will not be legally required to purchase general liability insurance for your eBay
business. However, some customers or clients may want you to provide proof of liability insurance to do business with you. If you want to apply for a professional license for your business, you may need to provide proof of general liability.
Yes, general liability insurance will have policy periods that cover incidents, claims, and lawsuits. Your coverage will only last for an agreed time period, which can create a lapse in coverage if you fail to renew if the policy expires.
General liability policy benefits trigger based on the type of policy you have. A per-occurrence policy makes an incident of injury or damage the trigger for coverage. If this incident occurred under the policy period, you will get coverage.
A claims-made policy is another way for benefits to trigger. This allows coverage to trigger only when a claim is made. This means that if you file a claim outside the policy period, it may not get covered. In a case like this, you might want to purchase an extension add-on that lets you get a longer time to report your claims.
| CoverWallet | NEXT | Thimble (Best) | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $1,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $2,000,000 |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | Yes | Can be included | No |
| HIPAA coverage included? | No | No | No | No | No |
| Sexual misconduct coverage included? | No | No | No | No | Can be included |
| License defense coverage included? | No | No | No | No | Can be included |
| Deductible | $500 | $500 | $500 | $50/$10,000 | $500 |
Another type of eBay business insurance is professional liability insurance coverage. This protects your business from lawsuits and liabilities stemming from mistakes, errors, or negligence you make in your business practices or operations. Example situations include:
You fail to deliver an item promised to a buyer that causes them to lose money and seek damages
You make an oversight in your business that causes financial damage to a client
The coverage limit for professional liability for eBay sellers will vary between $500,000 per occurrence and $1 million aggregate. Other limits are available as well. You will want to speak to your insurer if you have a specific limit in mind.
Professional liability will not typically cover business property damage, commercial vehicles, employee injuries, and employment discrimination lawsuits. You will want to purchase additional coverage for your business if you want these perils covered.
While this policy is not legally required, you may need insurance coverage to protect your business from financial ruin resulting from a costly legal suit. As an eBay seller, you will make lots of business decisions, and it's only a matter of time before you make a mistake that costs you money.
Get all the best quotes from leading providers in a click of a button!
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $260,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Contents coverage limit (minimum) | $50,000 | $22,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/10,000 | Included | Excluded |
| Money and securities | Excluded | $2,500 | $1,000 | Included | Excluded |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Business interruption floater | Excluded | Included | Included | Included | Excluded |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Excluded |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Included | Excluded |
Commercial property insurance protects your business premises and business property that is held within it. Examples of when to use this policy are listed below.
A fire breaks out on your business premise and ruins some of the products you intend to ship out.
One of the local criminals in your neighborhood breaks into your property and steals products you already promised to customers
Business interruption–Helps you compensate for lost profits when your business operations get interrupted by covered events. This policy can also help you make tax payments and rent payments. It can also reimburse you for relocation costs
Equipment breakdown–Covers things like mechanical and electrical breakdowns of your business equipment that result from covered incidents like power surges
Commercial property insurance has a median average coverage limit of $60,000 for small business owners. More coverage is available based on the value of the items and building you need to insure.
No, vehicles will need to be covered separately. If you use your vehicles for your business, you will want to inquire about a commercial auto insurance policy.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $260,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Contents coverage limit (minimum) | $50,000 | $22,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/10,000 | Included | Excluded |
| Money and securities | Excluded | $2,500 | $1,000 | Included | Excluded |
Business owner’s policy combines general liability and commercial property insurance. Purchasing a BOP is smart to get lower premiums even if you need more than one insurance product. Some situations to use this coverage include:
Your business property gets damaged by a natural disaster
A customer is financially harmed by a product you sold them
Cyber liability–This policy helps protect from the costs of cyber attacks and security breaches.
Outdoor property–Extends property coverage to outside property like business signs
Employment practices liability coverage–A liability coverage that protects you when your employees file a lawsuit due to poor employment from causes like discrimination, harassment, and wrongful termination
Business owner’s policy will have a general liability limit of $1 million-$2 million and property coverage between $20,000 and $60,000. Higher policy limits are available depending on the insurer.
No. You would need a worker's compensation policy to cover workplace illnesses or injuries that affect your workers.
Yes, this coverage will be helpful if employee vehicles are regularly used for business purposes.
| NEXT | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|
| Aggregate limit | $3,000/$10,000 | $2,500/$5,000 | $15,000/$25,000 | $5,000-$10,000 |
| Covers hired and borrowed equipment? | $3,000/$10,000 | $2,500/$5,000 | No | Yes |
| Miscellaneous equipment also covered? | $5,000/$10,000 | No | Yes | Yes |
| Offered as an endorsement to general liability insurance? | Yes | Yes | Yes | Yes |
| Deductible | $500 | $500 | $0 | $0 |
Tools and equipment insurance is a policy that protects your business equipment from physical damage and theft, even when they are off your business premises. Here are some situations where this policy can be useful:
While traveling to get more products to sell in your store, your laptop gets stolen by a criminal
One of your shipping tools gets damaged from a fire that started in your workplace
Equipment breakdown–Helps minimize your business downtime by covering the costs associated with repairing or replacing damaged equipment
Inland marine insurance–Protects your tools when they are transported on land by a vehicle like a truck or a train
Tools and equipment insurance has an average coverage limit between $3,000 and $25,000. The limits will change based on the policy and company.
Depends on the policy. A typical deductible for tools and equipment insurance can be around $500.
Events that happen because of wear and tear are not covered by this policy. Also, things like rust and corrosion from neglecting the maintenance of your equipment aren’t typically covered.
Commercial auto insurance covers vehicles that you use for business-related purposes. Some coverage situations include:
While driving your car to pick up an item to sell, you get into an accident
During business operations, your car gets stolen by a thief
Your commercial auto policy is comprised of several standard policy protections, including:
Collision–Protects your business against financial losses that originate from damage to your vehicle when it gets into an accident
Comprehensive–Covers your vehicle for physical damage from covered events besides accidents. Typical situations are things like theft, vandalism, or fires
Auto liability–Provides protection when you are found liable for damage to someone else or their property because commercial auto crashed
Medical payments–Helps you cover the costs for your or a passenger’s medical expenses if you get in a car accident, regardless of who is at fault
Rental coverage–Reimburses you when you need to operate a rental if your main vehicle is damaged and needs to be repaired or replaced
If you finance or lease your business vehicle, Gap coverage can help you pay off the remaining loan or lease period if your vehicle gets totaled. This is an add-on to commercial auto insurance.
Workers' compensation insurance protects your employees when they get injured and cannot work because of their job activities. Example situations include:
One of your workers injures their back while moving a product to sell on eBay
A worker contracts a chronic condition like carpal tunnel syndrome on this job that reduces their ability to work
Yes, workers comp policies provide medical benefits in addition to lost wages. This means you can get reimbursed for things like medications once your claim is approved.
Generally no. Independent contractors are exempt from coverage requirements. However, a company can choose to extend workers' comp benefits to independent contractors by naming additional insureds.
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| General liability insurance | $41 | $492 | $0-$500 |
| Professional liability insurance | $45 | $540 | $500-$1,000 |
| Commercial property insurance | $51 | $612 | $1,000-$2,000 |
| Business owner's policy | $92 | $1,104 | $1,500 |
| Tools and equipment insurance | $46 | $552 | $500-$1,000 |
| Commercial auto insurance | $55 | $660 | $500-$1,000 |
| Workers compensation insurance | $76 | $912 | $2,500-$5,000 |
Business insurance for ebay sellers is $41 per month or $492 per year for a $1 million general liability coverage. Factors that affect the cost of premiums are claims history, business history, policy limits, deductibles, location, number of employees, and revenues. Here’s a table showing the cost of a $1 million general liability insurance from the best companies:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $25 | $300 | Best overall; Fastest general liability insurance for eBay sellers |
| Hiscox | $30 | $360 | Customized eBay seller insurance |
| CoverWallet | $39 | $468 | Comparing different eBay seller policies online |
| Tivly | $46 | $552 | Comparing eBay seller insurance quotes over the phone |
| The Hartford | $49 | $588 | Insurance expertise for E-commerce policies |
| Thimble | $57 | $684 | On-demand coverage for eBay sellers |
Get all the best quotes from leading providers in a click of a button!
Here are some of the best eBay seller insurance companies. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability insurance.
Best overall
Issues an online proof of insurance instantly
Fastest general liability insurance eBay sellers
Great customer service and reputation
Excellent rates
Outstanding value for money
Get a 10% discount if you buy two or more policies
Couldn’t find any
NEXT is the best overall choice for your eBay seller insurance policy. They offer critical components like general liability and professional liability, all accessible online. NEXT delivers 10-minute quotes and has an app for increased convenience for the customer. The company has an A- rating with AM Best for financial security. It also has a B+ rating from the Better Business Bureau.
Best for: Best overall; Fastest general liability insurance for eBay sellers
Average cost: $25 per month
Our rating: 10/10
Pros
File your policy online
Extensive insurance experience
Renowned company for workers comp insurance
Cons
Some states may not be covered
The Hartford offers business owner’s policy, commercial auto, and general liability policies that are perfect for building your eBay seller insurance. This company has a highly rated claims process, receiving 4.8 out of 5 stars. They have an A- rating from AM Best and an A+ rating from the BBB.
Best for: Insurance expertise for e-commerce policies
Average cost: $49 per month
Our rating: 10/10
Dedicated customer support team
Lets you access all your insurance policies from one location
Compare quotes online
HNOA coverage automatically included in general liability insurance
Not an insurance company but an insurance broker
CoverWallet has a dedicated section of their site to E-commerce business insurance. They offer policy options like professional liability, cyber liability, and general liability. Their business model is to act as your own place to keep track of all your policies from their top partners. The company has an A-rating from the BBB.
Best for: Comparing different eBay seller policies online
Average cost: $39 per month
Our rating: 10/10
Has many partners to choose from
A flexible targeting approach connects you to the right policy
Compare quotes over the phone
No mobile app
Tivly has a guide to online retail insurance that lets buyers know about their business owner’s policy bundles that contain things like commercial property, general liability, and business interruption protection The company offers a selection of over 200 partners and has 20 years of experience in the insurance industry. They have an A rating from the BBB. Call now to compare quotes over the phone.
Best for: Comparing eBay seller insurance quotes over the phone
Average cost: $46 per month
Our rating: 10/10
Fast quotes
Excellent and functional app
On-demand coverage
General liability insurance is available as a short-term coverage
Chat support is not available 24/7
Thimble takes great care to ensure their insurance policy process is quick and easy to buy. They help you set up coverage for policies like general liability, professional liability, and cyber insurance. The company offers excellent resources for first-time buyers, which comprise 75% of their business. Thimble boasts an impressive A+ rating from AM Best.
Best for: On-demand coverage for eBay sellers
Average cost: $57 per month
Our rating: 10/10
Can get discounts for purchasing multiple policies
Convenient refund policy
Worldwide coverage
Numerous upgrades to base policies
Some policies are restricted by the number of employees you have
Hiscox offers e-commerce business insurance through general liability and professional liability policies. They help tailor and customize your policy to be wholly unique for your desired coverage. This allows you to get the maximum amount of coverage while not having to pay for coverage you won’t use. Hiscox has an A rating from AM Best.
Best for: Customized eBay seller insurance
Average cost: $30 per month
Our rating: 10/10
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
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