Whether your business operates from a warehouse, sells handmade crafts from home, or manages an expanding Shopify store, protecting it is of vital importance, which is where ecommerce business insurance comes into play.
Running an online business comes with its fair share of risks. While your level of protection depends on its size and scope, certain coverage areas remain common across any business.
We compared hundreds of policies and providers before selecting the five top ecommerce business insurance providers. Let’s first understand what this type of coverage offers before discussing what these best providers cover.
What is Ecommerce Business Insurance?
Ecommerce business insurance policies provide online sellers with protection from the unique risks inherent to digital platforms, such as lawsuits, cyberattacks, lost or damaged inventory, and costs related to them.
If your business depends on online sales, having adequate insurance protection could mean the difference between recovering quickly and suffering serious financial distress.
Common Types of Coverage for Ecommerce Businesses
Every business has its own needs, but most ecommerce sellers should consider these common forms of coverage:
1. General Liability Insurance
These types of coverages form the cornerstone of most ecommerce business insurance plans. These policies protect against physical injury or property damage due to defective product sales or customer interaction that went wrong.
Even fully online businesses can reap the benefits from such coverage, particularly those selling physical products to consumers.
2. Product Liability Insurance
Selling products online involves some risk. Product liability insurance protects your business in case one of its items causes injury due to a design flaw, manufacturing issue, or misuse, helping manage legal and financial implications associated with claims made against it.
Comprehensive ecommerce business insurance policies should cover this aspect, especially if your goods are produced or imported directly by you.
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3. Transit or Shipping Insurance
Shipping insurance provides essential protection in case of damaged or lost merchandise during transport, providing essential coverage to businesses relying on third-party logistics or international shipping services.
Many ecommerce insurance providers include transit protection as part of their package of offerings.
4. Cyber Liability Insurance
Customer data collection is an integral component of online retail, yet it can open the doors for cyber attacks. Cyber liability coverage is an integral component of any sound ecommerce business insurance strategy, helping protect businesses against data breaches, ransomware attacks, phishing attacks, and other online risks.
Legal costs, customer notification expenses, and fines from regulatory bodies all count toward the costs of doing business.
5. Workers’ Compensation
If your company employs even one employee, workers’ compensation insurance should likely be on your required insurance list. It covers medical costs and lost wages should an injury occur on the job site.
6. Business Property Insurance
Whether you store inventory at home storage units and warehouses, third-party locations, or business property insurance helps safeguard it against theft, fire, or any other damage.
This coverage like is especially valuable to ecommerce businesses that maintain large inventories or depend on equipment for fulfillment and shipping services.
5 Best Ecommerce Business Insurance Providers
1. The Hartford
The Hartford is an outstanding choice for ecommerce business insurance due to their expansive coverage offerings and adaptable limits that grow along with your business. They allow for customized policies with custom deductibles and limits, and specific endorsements tailored specifically for any risks your store might be exposed to.
Whether your online selling business is small or expanding rapidly, The Hartford can provide tailored protection with strong claims support and reliable service.
Pros
- 24/7 claims and customer service
- Flexible coverage options based on business size
- Cyber risk services included
Cons
- You may need to call to complete or purchase a policy
- No mobile app to manage policies or file claims
2. Simply Business
Simply Business is an online insurance broker that makes it simple and cost-effective to compare quotes from top providers, making the task of saving on ecommerce business insurance easy without compromising quality. Compare multiple quotes side-by-side before selecting coverage suitable for your ecommerce store.
Note that Simply Business does not handle claims directly; that responsibility lies with the carrier you select.
Pros
- Quick quote comparison in minutes
- Some partners offer same-day coverage
- Request a certificate of insurance (COI) online
Cons
- No 24/7 customer support
- Commercial property quotes may not be available online
- Claims must be initiated with the carrier, not Simply Business
3. Next Insurance
Next Insurance offers ecommerce-ready coverage with three pre-built policy packages: Basic, Pro, and Pro Plus. It’s Pro package meets Amazon’s insurance requirements, making it ideal for marketplace sellers. Within minutes, you can get quotes, purchase, and access policies online–all from within a minute.
Next Insurance offers quick and straightforward ecommerce business insurance that meets seller platform guidelines in an intuitive digital experience.
Pros
- Up to 10% savings when you bundle
- Instant online quote and policy purchase
- 24/7 access to policy documents
Cons
- Customer service is only available on weekdays
- Still expanding offerings across all U.S. states
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4. Thimble
Thimble offers highly flexible ecommerce business insurance built for crafters, artists, and small-scale sellers. Handmade business owners find these policies particularly convenient due to their temporary, monthly, or annual coverage options. Thimble’s mobile-first platform makes managing everything from your phone convenient, while coverage limits can expand with your business needs.
Thimble can help your handmade shop or sell at events run efficiently and profitably.
Pros
- Instant COI available within 60 seconds
- Available in all 50 states
- Purchase and manage your policy through the app
Cons
- Limited phone support and weekday-only service
- Claims handled by the insurer, not the broker
- Hard to reach a live representative by phone
5. Hiscox
Hiscox is a trusted name in small business insurance, offering strong coverage for ecommerce sellers, especially those running from home. Their policies are designed around your revenue and risk level, and include robust cyber liability coverage, available as a standalone plan or bundled with general liability.
Hiscox even publishes an annual report on global cyber readiness, showing their commitment to protecting online sellers from digital threats.
Pros
- Online quotes and instant policy purchase
- Focused on small business and ecommerce needs
- In-house claims management and multi-policy discounts
Cons
- Some policies have lower coverage limits online
- No 24/7 customer service availability
- Mobile app not available for commercial customers
Conclusion
Choosing the right ecommerce business insurance provider depends upon several factors, including your business size, the products sold, and how you operate. Whether your insurance needs range from full coverage, trusted names like Hartford, to quick quotes through Simply Business, to niche solutions such as Thimble or Hiscox, there’s sure to be one available that meets them all.
Don’t wait for something bad to happen before taking steps to safeguard your online store. By having insurance in place, you can focus on expanding your ecommerce venture, knowing you will be covered if the unexpected should arise.
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