Need E-commerce Insurance? We Got You.

Get Business Insurance for as Low as $22.50/Month.*

Let’s face it: You’ve worked hard to build your e-commerce business. And whether you started with an Etsy store or you’re making big bucks as an Amazon seller, one thing is clear:

You need the best e-commerce business insurance to protect your hard work.

That’s where Simply Business comes in. We’re an online insurance platform that makes it extremely easy to compare affordable policy options from insurers that specialize in covering e-commerce businesses like yours.

Just answer a few questions about your business, click on and consider purchasing a policy coverage option you like, and relax — you just got insured.

Ready to get protected for as low as $22.50/month?*

Get your quote

Policies Typically Available for E-commerce Business Insurance:

• General liability insurance
• Workers compensation insurance

Benefits:

• It can potentially protect your e-commerce business from certain claims.
• It can help cover damages caused by your work.
• Proof of insurance can meet requirements from e-commerce platforms.
• Business insurance may be legally required where you live.

What Types of Insurance Do I Need for My E-commerce Business?

As an e-commerce business owner, you’re likely exposed to a lot of risks that may not be 100% obvious to you.

For example, while you may not be interacting with customers face-to-face, those customers are still interacting with your products — and that could open you up to potential product liability claims (more on that later).

Plus, with more e-commerce platforms like Amazon requiring proof of business insurance, it’s no wonder more online retailers are looking for info on which policies they should buy.

That’s why you may want to consider these two e-commerce insurance policies:

General Liability Insurance

General liability insurance — commonly referred to as GL insurance, or commercial general liability insurance — can be a foundational insurance policy for e-commerce businesses that want financial protection from common claims such as:

Product liability: This coverage is a big one for e-commerce business owners, and for good reason: It can help cover you in the event a customer claims that a product from your online store caused them damage in some way.

For example, let’s say that your product contains small parts that could pose a choking hazard, but it doesn’t contain a warning. Unfortunately, a customer’s child choked on a part from your product. The child is fine, but your customer is angry, so they sue you for selling a defective product.

In the above scenario, you’d likely be financially responsible for resulting claims related to the damage your product caused. But with general liability insurance, your policy could cover the cost of the claim, plus attorney’s fees, to defend you in court (up to your policy limit).

Advertising injury: Having an online business means opening yourself up to a lot of digital risk, which includes claims involving copyright infringement, libel, slander, and more.

Let’s say you decide to call out one of your competitors on your online store. You compare your product directly to theirs and claim that their product is unsafe to use. Your competitor gets wind of your advertising and sues you for libel, claiming you defamed them by printing false information about their product.

In this case, general liability insurance would cover financial damages you’re ordered to pay, as well as legal fees (up to your policy’s limit). That means you likely won’t have to pay for those damages out of your own pocket if you’re covered!

Third-party accidents: If a vendor or client visits your location and accidentally gets hurt while there, your general liability policy could pay for any resulting medical bills and claims.

And more (we’ll talk about this in a bit).

As you can see, general liability insurance can cover a lot of the risks you face as an online business owner. That includes risks you face as a result of your actions, as well as risks from customers who may sue you, even if you did nothing wrong.

And those lawsuits can happen a lot. Did you know that a study indicated that 40% of small businesses will likely experience a property or liability loss within the next 10 years?

Those lawsuits tend to be expensive, too. For example, the most costly claim is reputational harm (aka libel and slander), which runs an average cost of $50,000!

Product liability — another common risk for e-commerce business owners — boasts an average claim of $35,000.

Those are definitely not small amounts to deal with, especially for a small business owner!

Fortunately, general liability insurance can cover those costs (including attorney’s fees - up to your policy limit). And with many policies having $0 deductibles, there’s a good chance you won’t have to pay any money out-of-pocket in the event of a covered claim.

Not bad for a policy that’s available for as low as $22.50/month!*

To recap, general liability insurance can typically cover:

• Bodily injury to another person
• Third-party property damage
• Personal and advertising injury
• Medical expenses
• And more

Here’s what GL insurance typically doesn't cover:

• Damage to your own property
• Professional services
• Workers compensation or injury to your employees
• Damage to your work
• Motor vehicles while in business use
• Expected or intentional injury or damage
• And more

Note for Amazon Professional Sellers: Our e-commerce liability insurance meets the insurance requirements spelled out in Amazon’s TOS for Professional Sellers.

Cyber Insurance

General liability can be indispensable if accidents happen or products cause damage or harm. But as an online business owner, you could be an attractive target for people trying to steal customer information or take down your website (which is the same as taking down your business).

If you already have antivirus and other cyber protection products, you’re taking steps in the right direction. Unfortunately, cybercriminals are relentless and clever. Research shows a hacker strikes every 39 seconds. Even if just one is successful, it could cost your business tens of thousands of dollars as a result.

Cyber insurance can help cover many of those costs (up to your policy limits). Even better news, you can get coverage quickly, easily, and affordably. And you can start right now and get a quote in under 60 seconds.

Here’s what cyber insurance usually covers:

• Crisis management expense
• Forensic and legal expense
• Fraud response expense
• Extortion loss
• Public relations expense
• And more

Cyber liability insurance usually does not cover:

• Potential future lost profits
• Cost to improve system security
• Loss of value from theft of intellectual property
• And more

Workers Compensation Insurance

If you have employees working for your e-commerce business — even if they’re working part-time out of your home — you may need to get workers compensation insurance, depending on your state.

Workers compensation is insurance coverage that can cover an employee’s medical bills — as well as lost wages — if they get sick or injured on the job. Workers compensation insurance can even potentially pay for death benefits if the worst happens to your employee.

For example, if one of your employees is moving heavy boxes to their car for shipping and they accidentally drop a box on their toe, your policy could pay for their medical bills if they had to go to the hospital.

In most states, employers are required to carry workers compensation insurance when they hire their first employee.

In summary, workers compensation insurance for e-commerce business owners can cover:

• Medical payments
• Lost wages
• Rehabilitation expenses
• Death benefits

Why Should I Get Insurance for My Online Business?

When you run an online store, it’s easy to assume you don’t need business insurance. But that’s not necessarily true, especially if you sell products that you make or have an online store with a large e-commerce platform, like Etsy or Amazon.

After all, accidents happen. Products break. And customers may decide to sue you for a variety of reasons — even if you did nothing wrong.

Having business insurance is a lot like having other insurance. You may not always need it, but if something does happen, it can help you avoid paying a huge bill that would otherwise be 100% your responsibility.

And with average claims in the tens of thousands of dollars, it’s clear to see that business insurance is helpful to have when you need it.

The good news is that business insurance can be customized to your specific risks, so you don’t necessarily have to pay for what you don’t need. When you buy an e-commerce insurance policy from Simply Business, you can feel confident that you’re getting the coverage you need to protect your money and your peace of mind.

Plus, business insurance can be surprisingly affordable. With some essential GL policies starting at as low as $22.50/month* with $0 deductibles, you don’t have to choose between protection and your bottom line.

Need more convincing? E-commerce business insurance also can:

• Meet any legal requirements in your city, county, or state
• Help customers feel good about purchasing from your store
• Help you rent a workspace, if you decide you need an office
• Meet e-commerce platform requirements (like Amazon’s)

Ready to get started? Use our free online quote tool to see policy options from the nation’s top insurers — all in under 10 minutes.

E-commerce Insurance FAQs

Finding the right policy doesn’t have to be a hassle, especially when we’re here to help. Take a look at our answers to your most common e-commerce business insurance FAQs.

• Is online retail business insurance required by law?

  The state or city (or both!) where you operate your e-commerce business may require you to have proof of insurance, especially if you have employees. Plus, you may find that the e-commerce platform where you host your online store requires you to carry general liability insurance for an online business.

  Even if you’re not required to have insurance coverage, there are still plenty of good reasons to get it, such as:

  • It helps ensure that you don’t have to use your business or personal finances to pay for any claims.

  • It can cover legal costs (like hiring a lawyer) if you’re sued by a customer.

  • It can help you get any licenses or leases that may require proof of insurance coverage.

• Is e-commerce insurance tax deductible?

  In general, you can deduct your insurance premiums when filing your business’s taxes. But we’re not tax experts, so it’s a good idea to speak with a tax professional or an accountant if you have additional questions on your specific business.

• How much e-commerce business insurance will I need?

  The answer really depends on your online business, so it’s tough to make an exact recommendation.

  But to help give you a better idea of how much you may need, your insurance coverage is typically built based on:

  • Your location
  • Where your sales are located
  • The products you sell
  • How long you’ve been in business
  • Your experience in the industry
  • Your payroll (aka the number of employees you have)
  • Your annual revenue
  • And more

  Those bits of information are helpful for creating a customized insurance package that helps cover your biggest — and most expensive! — risks.

• What should I consider before buying e-commerce liability insurance?

  If you’re thinking of buying business insurance, we recommend having the following information on hand when using our online quote tool:

  • Annual revenue estimates
  • Payroll estimates
  • Information on any previous claims

  This information can make it easier to get a quote from one of our insurers in under 10 minutes.

• What does e-commerce insurance cover?

  Your e-commerce business insurance coverage can be customized to cover you against the most common risks you face as an online retailer.

  For example, a bundled plan that includes general liability insurance and workers compensation (if you have employees) can cover:

  • Product liability
  • Accidents and damages
  • Employee injuries
  • And more

  So whether you need multiple policies or you just want general liability coverage to meet Amazon’s requirements, Simply Business can help you find the coverage you need, at an affordable price.

• How much does e-commerce business insurance cost?

  There’s no one set insurance cost for online retailers, as policies are customized to your specific risks and needs. But we won’t leave you hanging with no information!

  Your insurance premium is usually determined by:

  • Your payroll
  • Where you’re located
  • The products you sell
  • Annual revenue estimates
  • And more

  Want to see how much your business insurance coverage may cost? Answer a few questions about your business, and in just a few minutes, you could see policy options from insurance companies that specialize in protecting online retailers like you.

Why Choose Simply Business?

Simply Business is an online business insurance platform that makes it easy to compare and buy policies from top insurers. We have over a decade of experience in making business insurance clear and simple for our customers.

We pride ourselves on making business insurance:

• Fast and Affordable: You have better things to focus on, like running your business. Our policies are fast, affordable, and ready when you are.

• Tailored to You: Forget one-size-fits-all insurance. Get the protection your business needs, when you need it.

• Flexible with Coverage: Whether you need increased coverage for the launch of a new product or a policy to meet an e-commerce platform’s requirements, Simply Business can help.

After all, you’ve worked hard to grow your online retail business, and we offer the best coverage to protect it.

*Monthly payment calculations (i) do not include initial premium down payment and (ii) may vary by state, insurance provider, and nature of your business. Averages based on August 2021 data of 43% of our total policies sold.

This content is intended to be used for informational purposes only. It is not intended to provide legal, tax, accounting, investment, or any other form of professional advice.