Best Ecommerce Business Insurance for Online Retailers

by Adarsh Patel
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Small business owners should look for ecommerce business insurance carriers that provide quality coverage at an affordable rate and can scale up their business. We compared over 15 carriers on cost, policy options, online features and more to come up with the seven best e-commerce insurance companies.

An online retailer must consider e-commerce business insurance. It protects you from lawsuits, accidents, and calamities and gives you protection. Most businesses should have e-commerce insurance that protects sellers from risks.

Interested in knowing more about liability insurance for ecommerce, then this article is for you. Here we will give you detailed information about the best ecommerce business insurance for online retailers.

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What is Ecommerce Insurance?

Suppose you are an online business owner. So as an owner, you need a policy that can reduce risks.

An ecommerce insurance policy is a policy that covers the risks faced by the online business owner. In this, coverage is provided to compensate for the loss after the closure of business, injury to an employee, any accident with someone, loss of property etc.

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Why do e-commerce businesses need insurance?

Need For Ecommerce Businesses Insurance
Ecommerce Business Insurance

An E-commerce business is to run, operate and reduce the risks in the business. It covers for accidents like slips and falls, any physical damage, etc.

Covers financial loss to the online store and every damage resulting from communicating the business.

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What are the problems faced by e-commerce businesses?

  • Products that cause injury or damage to property
  • Violations on the website that expose customer information
  • Not delivering the product on time or misbehaving with the customer
  • Any damage or theft

What does e-commerce business insurance cover? 

Insurance needs may differ depending on what each business sells. All these covers are included in an ecommerce business insurance package.

1: Cyber ​​Liability Insurance

Cyber ​​liability insurance is essential and vital coverage for businesses that operate online. This insurance generally covers costs related to electronic events. This includes cyber hacks that involve technology, systems, and data.

Suppose an employee clicks on a wrong link, which accesses the customer database of the customers, i.e. provides the information. That link leaks customer information.

Cyber ​​liability insurance covers loss and damages to your customer by informing and repairing data.

2: Product Liability Insurance

Product liability insurance is essential and important insurance for retailers. It defends you against an allegation of harm, bodily injury, etc., to a third-party person caused by your product.

Suppose you operate a drop shipping company; ensure that all manufacturers and distributors are adequately insured.

Your broker can help you determine whether you need the policy or whether they should include you in the policy. For example, a customer claims that a product purchased from your shop has exploded.

The explosion caused damage to many people and damage to the house. So in such a situation, legal action can be taken against you, and you can also pay medical expenses. This is because a third person may have to pay medical expenses if your product causes damage to that person.

And there is such a big problem in the product made by you due to which you will have to face legal action. But if you have your e-commerce insured, it will cover your legal and medical expenses.

3: Commercial general liability insurance

Commercial General Liability Insurance protects you from everyday risks. This can often happen when interacting with a third party, including injury, property damage, or physical harm.

Suppose when you go to drop the goods at the customers’ door, then the customers come to the door to pick up the goods.

If any bodily harm is caused to a customer during that time due to you, you can be sued. CGL insurance will generally cover all legal expenses and doctor fees.

4: Commercial property insurance

If you store your products in a location or operate the business from your home office, then this insurance is essential for you. This insurance provides coverage for your physical location or material such as stocks, inventories, etc. 

It protects against any damage to your stock such as theft, fire, flood, spoilage etc. This coverage covers overhead costs, business closing, employee salaries, etc.

Best eCommerce Business Insurance For Online Retailers

Best eCommerce Business Insurance
Ecommerce Business Insurance

1: Cover wallet

Cover Wallet is one of the best eCommerce insurance companies. Cover Wallet A provides coverage for commerce companies. It brings the best offers to its customers and provides them coverage quickly and safely.

2: Hiscox

Hiscox is a leader in commercial insurance for sole proprietorships and small enterprises, making it ideal for home-based e-commerce businesses.

As a result of the carrier’s focus on low-risk businesses, insurance premiums are kept at a reasonable level. Electronic data loss insurance can be added to a BOP that e-commerce companies can construct with Hiscox.

3: Nationwide

Nationwide, a reputable national carrier offers a variety of commercial insurance solutions for e-commerce companies and specialises in property and liability insurance.

One of these, the cyber policy, stands out since it covers three important coverages: data recovery, identity theft, and cyber security.

3: Cyber Policy

The cyber policy is the Quote for Quick Cyber Insurance Internet regulation. Our top recommendation for quick cyber insurance quotes is the online insurance broker Cyber Policy.

Cyber Insurance is complicated insurance, but Cyber Policy has developed a straightforward internet tool that provides rates for comparison in under a minute.

In addition, the organisation offers basic e-commerce insurance plans and resources to assist business owners in determining their needs.

4: Layer

Online insurance broker Layer uses technology to simplify the process of purchasing business insurance.

Despite concentrating primarily on cyber liability protection, it is the ideal organisation for owners of manufacturing-based e-commerce businesses because it provides product liability to A-rated carriers.

Factors Determine E-commerce Insurance Cost

The price of e-commerce insurance is affected by the following factors.

  • Number of policies required
  • Coverage limit and policy limit
  • Place of arrangement
  • Business status
  • What products do you sell, and what offers do you offer?
  • Your number of employees
  • Assets of your business
  • History of past claims


There are different types of insurance for everything, such as individuals, vehicles, businesses, etc. It is essential to have business insurance; it covers every accident and loss that happens in your business and protects you from loss. E commerce business insurance is a must-have for online retailers, and it provides a foundation to the business which protects it from every loss and provides cover to make up for the loss.

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