E-commerce Insurance

Protect your online store from product liability, cyber attacks, shipping issues, and more with specialized e-commerce coverage.

Why E-commerce Businesses Need Insurance

Running an online store comes with unique risks that traditional brick-and-mortar insurance doesn't cover. From credit card data breaches to product liability claims, e-commerce businesses face threats from multiple angles.

Whether you're selling on Shopify, Amazon, Etsy, or your own platform, the right insurance protects your business, inventory, and customer data while giving you peace of mind to scale.

Essential E-commerce Coverage

Product Liability Insurance

Protects against claims that your products caused injury or damage. Critical if you manufacture, distribute, or private label products.

Cyber Liability Insurance

Essential coverage for data breaches, payment card theft, ransomware attacks, and customer information security failures.

General Liability Insurance

Covers third-party bodily injury, property damage, and advertising injury claims. Required by many payment processors and marketplaces.

Commercial Property Insurance

Protects your inventory, equipment, and warehouse space from theft, fire, and natural disasters.

Business Interruption Insurance

Covers lost income if your online store goes down due to covered events like cyber attacks or server failures.

Shipping & Cargo Insurance

Protection for goods in transit. Covers lost, stolen, or damaged inventory being shipped to customers.

Common E-commerce Risks

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Payment Card Breaches

Hackers steal customer credit card data, leading to PCI-DSS fines and lawsuits.

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Product Defects

A customer is injured by your product and sues for damages and medical expenses.

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Shipping Losses

High-value inventory is lost or stolen during transit to customers or warehouses.

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Warehouse Disasters

Fire, flood, or theft destroys your inventory before it can be sold.

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Copyright Claims

Accused of using copyrighted images or descriptions in product listings.

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Website Downtime

DDoS attack or server failure takes your store offline during peak sales season.

Real-World E-commerce Claims

Dietary Supplement Store

A customer has an allergic reaction to a supplement and sues for $75,000 in medical expenses. The store's product liability insurance covers legal defense and settlement.

Claim paid: $62,000 in legal fees and settlement

Fashion Boutique

Hackers breach the store's Shopify site and steal 10,000 customer credit card numbers. PCI penalties and customer lawsuits total $250,000.

Cyber insurance covered: Forensics, notification, fines, and legal defense

Electronics Retailer

A warehouse fire destroys $150,000 worth of inventory right before Black Friday. Commercial property insurance replaces the lost stock.

Property insurance covered: Full inventory replacement value

Coverage by E-commerce Platform

Shopify / WooCommerce / Custom Sites

You need comprehensive coverage:

✓ General Liability ($1M minimum)
✓ Product Liability (if selling physical products)
✓ Cyber Liability (mandatory for payment processing)
✓ Commercial Property (if you hold inventory)

Amazon FBA Sellers

Amazon requires proof of insurance:

✓ $1M General Liability (Amazon requirement)
✓ Product Liability included
✓ Amazon named as additional insured
✓ Cyber coverage recommended but not required

Etsy / Handmade Sellers

Essential for craft and handmade goods:

✓ Product Liability (protects against injury claims)
✓ General Liability (if you attend craft fairs)
✓ Home-based business rider (if working from home)

Cost Breakdown

E-commerce insurance costs vary based on:

•Annual revenue: Higher sales = higher premiums
•Product type: Electronics and supplements cost more than apparel
•Inventory value: More stock to insure costs more
•Claims history: Past claims increase future rates

Small E-commerce Store

$1,500 - $3,000/year

Under $500K revenue, basic coverage

Growing E-commerce Business

$3,000 - $10,000/year

$500K-$5M revenue, comprehensive coverage