eBay Seller Insurance: Cost & Quotes From $25/mo

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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 Seller Shipping 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


General Liability Insurance for eBay Sellers

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

Add-Ons of General Liability Insurance for eBay Sellers

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

Coverage Limits of General Liability Insurance for eBay Sellers

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.


Is General Liability Insurance Legally Required?

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.

Do I Need to Have an Active Policy to Get Coverage?

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.


What Does Per-Occurrence and Claims Made General Liability Coverage Mean?

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.


Professional Liability  Insurance for eBay Sellers

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

Coverage Limits of Professional Liability Insurance for eBay Sellers

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.


What is Not Included in Professional Liability Insurance?

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.


Do eBay Sellers Need Professional Liability Insurance?

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.

Compare Cheap eBay Seller Insurance Quotes Online

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Commercial Property Insurance for eBay Sellers

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

Add-Ons of Commercial Property Insurance for eBay Sellers

  • 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

Coverage Limits of Commercial Property Insurance for eBay Sellers

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.


Does Commercial Property Insurance Cover Your Vehicles?

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.




Business Owner’s Policy for eBay Sellers

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

Add-Ons of Business Owner’s Policy for eBay Sellers

  • 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

Coverage Limits of Business Owner’s Policy for eBay Sellers

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.


Does Business Owner’s Policy Cover Worker Injuries?

No. You would need a worker’s compensation policy to cover workplace illnesses or injuries that affect your workers.


Is Hired/Non-Owned Auto Liability Insurance an Option for Business Owner’s Policy?

Yes, this coverage will be helpful if employee vehicles are regularly used for business purposes. 


Tools and Equipment Insurance for eBay Sellers

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

Add-Ons of Tools and Equipment Insurance for eBay Sellers

  • 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

Coverage Limits of Tools and Equipment Insurance for eBay Sellers

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.


Does Tools and Equipment Insurance Have a Deductible?

Depends on the policy. A typical deductible for tools and equipment insurance can be around $500.


What Incidents Are Not Covered by Tools and Equipment Insurance?

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 for eBay Sellers

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 

Add-Ons of Commercial Auto Insurance for eBay Seller

  • 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

What is Gap Coverage?

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 for eBay Sellers      

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

Can I Get Reimbursed for the Medications I Pay for?

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.


Are Independent Contractors Covered by Workers’ Compensation?

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. 

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eBay Seller  Insurance Cost

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

Compare Cheap eBay Seller Insurance Quotes Online

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

Best eBay Seller Insurance Companies

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. 


NEXT eBay Seller Insurance

Pros

  • 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 

Cons

  • 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 


The Hartford eBay Seller Insurance

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 


CoverWallet eBay Seller Insurance

Pros

  • 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

Cons

  • 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 


Tivly eBay Seller Insurance

Pros

  • Has many partners to choose from

  • A flexible targeting approach connects you to the right policy

  • Compare quotes over the phone

Cons

  • 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 


Thimble eBay Seller Insurance

Pros

  • Fast quotes

  • Excellent and functional app

  • On-demand coverage

  • General liability insurance is available as a short-term coverage

Cons

  • 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 


Hiscox eBay Seller Insurance

Pros

  • Can get discounts for purchasing multiple policies

  • Convenient refund policy

  • Worldwide coverage

  • Numerous upgrades to base policies

Cons

  • 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 

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