For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!
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 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 |
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.Â
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.
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.
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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.
