Every ecommerce business—be it an online retailer, an individual selling homemade items on Etsy or Amazon out of their home, or a larger brick-and-mortar operation with a warehouse—needs insurance to protect its operations.
While the limits may change, the type of coverage remains largely the same for ecommerce business insurance. We evaluated over 20 insurers and found the five best ecommerce insurance companies.
- The Hartford: Best overall provider for ecommerce insurance
- Simply Business: Best for comparing quotes to save money
- Next Insurance: Best for Amazon and Etsy sellers
- Thimble: Best for insuring crafters and handmade goods
- Hiscox: Best for cyber insurance
Insurance designed for small businesses — fast, simple, and affordable |
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Best Ecommerce Insurance Companies Compared
Quote Process | Average General Liability Cost | Accessibility | Financial Rating | ||
|---|---|---|---|---|---|
 | Online or through an agent | $67 per month | 24/7 availability | ✓ | A+ (Superior) |
| Online or over the phone | $21–$25 per month | Depends on the provider | ✓ | A++ (Superior) |
 | Online or over the phone | $31 per month | Monday-Friday, 8 a.m.-5 p.m. ET | ✓ | A- (Excellent) |
 | Online or on the app | $40 per month | Monday-Friday, 9 a.m.-6 p.m. ET | ✓ | A++ (Superior) |
 | Online or over the phone | $29 per month | Monday-Friday, 7 a.m.-10 p.m. ET | ✓ | A (Excellent) |
The Hartford: Best Overall for Ecommerce
Pros
- Claim services are available 24/7.
- There’s flexibility to tailor coverage to the size of your business.
- It offers cyber risk assistance.
Cons
- You may have to call to finish the quote.
- You may have to call to purchase a policy.
- It lacks a mobile app to manage your policy or claims.
Standout Features
- Offers flexible levels of coverage, with endorsements like protection for perishable goods in transit
- Maintains its own in-house claims department that has years of experience resolving ecommerce claims, with customer reviews of The Hartford’s claim handling being overwhelmingly positive
- Has shipping coverages (e.g., worldwide liability coverage) for ecommerce business that ships internationally
Financial Stability
With over 200 years of experience, The Hartford has the financial strength you would expect from a successful insurance company. AM Best rated The Hartford an A+ (Superior).
The Hartford is the overall best provider of ecommerce business insurance because it has the full range of coverage you need and flexibility in limits to match your business size. You can customize your policy limits and deductibles, and it provides a host of add-on endorsements so that the coverage fits your specific needs. It also tops our list of the best small business insurance companies.
If you would prefer to compare quotes from different providers before purchasing a policy, check out Simply Business. This online broker works with multiple top-rated carriers, so you can compare quotes before purchasing a policy online.
We received a quote for a business owner’s policy (BOP) containing general liability, $15,000 in protection for your property, and data breach insurance. The quote was for $687 annually with The Hartford.
The liability portion provides a limit of $1 million per occurrence and also protects against any data breaches that your business may face. The provider offers specialized cyber resources for online business through The Hartford Cyber Center.
The Hartford has excellent customer service, with 24/7 access to claims, customer service, and online policy management.
Customers and agents have a positive experience working with The Hartford. The number of complaints filed with the National Association of Insurance Commissioners (NAIC) is lower than the national average. In the most recent data, while many other carriers’ complaint index rose, its complaints continue to remain low.
Simply Business: Best for Comparing Quotes to Save Money
Pros
- Simply Business lets you compare quotes online in just minutes.
- Some of its partner carriers make same-day coverage an option.
- You can request a COI online.
Cons
- It lacks a 24/7 customer service center.
- Commercial property quotes may be unavailable online.
- You must notify a specific carrier to start a claim.
Standout Features
- Makes it easy for you to compare quotes from top-rated providers for ecommerce insurance as it’s a digital broker
- Allows you to get a quote in 10 minutes or less and purchase the policy online without needing to call and speak with anyone about it; if you wish to review the policy with a person, licensed agents are available on weekdays
- Lets you adjust limits and deductibles and receive an updated quote in real time, in case you are curious about the cost or unhappy with the initial quote
- Offers multiple coverages like general liability, cyber insurance, and workers’ comp
Financial Stability
Simply Business works with multiple top-rated carriers—and it’s owned by one. Travelers purchased Simply Business in 2015, and AM Best rated Travelers an A++ (Superior).
Simply Business is an online broker specializing in small business insurance. It works with multiple top-rated carriers, allowing you to compare small business insurance quotes and coverages to choose which policy is best for you. Comparing quotes is a great way to save money on insurance.
Because Simply Business is a broker, it doesn’t directly handle any claims. If you’d prefer to go with a carrier that has a similar level of convenience but handles claims in-house—so you only have one point of contact throughout the process—then Hiscox may be the better pick.
After answering a few questions, we received a quote for cyber liability insurance for an ecommerce business. The quote was for $250 annually and came with an aggregate coverage of $250,000 and a deductible of $1,000.
The policy was through USG Insurance Services. It carried multiple coverages within that limit, but some did have a lower coverage amount. The quote came with $10,000 in coverage for extortion and $50,000 in forensic and legal expenses.
Simply Business is available in all 50 states. You can get a quote and purchase a policy entirely online. Usually, it will provide multiple quotes from different top-rated carriers, allowing you to compare for the best price. When you purchase a policy, you gain access to an account where you can manage it, file a claim, and get an instant COI.
Unfortunately, it is not open 24/7, and if you want to call, you will need to do so between 8 a.m. and 8 p.m., Monday through Friday. Simply Business is well-reviewed by customers, scoring 4.7 out of 5 with over 1,100 user reviews on Trustpilot.
Next Insurance: Best for Amazon Vendors & Etsy Sellers
Pros
- Save up to 10% when you bundle.
- Get a quote and purchase a policy online in just minutes.
- It offers 24/7 access to your policy.
Cons
- It has a weekday-only service center for customer service.
- It’s a newer company that is still rolling out coverages across states.
Standout Features
- Lets you access the free resources and guides Next has created, useful if you sell on Amazon or Etsy
- Offers a policy package designed for ecommerce businesses with four key coverages created for ecommerce businesses
- Provides policies in line with Amazon requirements, including product liability
- Allows you to easily add Amazon or any other host business to your policy as an additional insured and then forward them proof of insurance
Financial Stability
Despite only being founded in 2016, Next Insurance’s AM Best rating is A- (Excellent). AM Best has determined Next Insurance’s balance sheet is very strong.
For ecommerce businesses, Next Insurance offers three policy packages: Basic, Pro, and Pro Plus. Its most popular offering, Pro, meets the requirements for Amazon seller insurance. In minutes, Next Insurance can generate multiple quotes, including ones that fit and can work on seller platforms like Amazon or Etsy. It is one of our top providers of general liability insurance.
If you prefer a traditional carrier but one with 24/7 availability when you need it, check out The Hartford because it maintains a 24/7 call center for claims and customer service.
Save up to 10% on ecommerce policies with Next Insurance. We received a quote for a BOP costing $59.59 a month. This policy provides product liability coverage and $10,000 in coverage for equipment and property.
According to Next Insurance, 65% of its customers pay anywhere from $23 to $30 a month for general liability for ecommerce business insurance.
Next Insurance offers a great app that functions like a 24/7 service center. When you need to speak with someone, you can make changes to your policy, pay your premium, request a certificate of liability insurance, and file claims through the app.
If your business isn’t strictly ecommerce but does work online, it is still a great choice because of its wide range of industries covered.
Customers are happy with their experience with this provider. Its complaints monitored by the NAIC are lower than the national average. Next Insurance’s reviews page has over 3,500 user reviews with an average score of 4.5 out of 5.
Thimble: Best for Insuring Crafters & Handmade Goods
Pros
- You can get a COI within 60 seconds.
- Thimble is available in all 50 states.
- You can purchase a policy through its app.
Cons
- It has weekday-only services for customer service.
- Claims are managed by the carrier and not Thimble.
- Reaching someone by phone is very difficult.
Standout Features
- Allows you to manage your policy, adjust coverage, and file a claim through an app for iOS and Android
- Enables you to purchase hourly coverage, beneficial if you are a craft show or fair vendor
- Lets you purchase $5,000 in equipment coverage for home-based crafters
- Offers customizable limits, and coverage increases as your business grows
Financial Stability
Thimble offers policies underwritten by Markel Insurance and the National Specialty Insurance Company (NSIC), among other companies.
- Markel’s AM Best rating: A (Excellent)
- NSIC’s AM Best rating: A (Excellent)
Thimble provides a convenient experience for shopping and managing your ecommerce insurance policies. Simply download the app and get started. It has custom policies for crafters and solopreneurs who sell handmade products. During the pandemic, Thimble expanded into the maker and craft space, specializing in insuring small businesses that craft handmade items like soap, jewelry, and apparel.
It offers limits as low as $500,000 and as high as $2 million, and its goal is to grow with your business. If you are just starting out making and selling your goods online, then Thimble is the best ecommerce insurance provider for you.
One of the biggest challenges is reaching a person if you need to speak with anyone. While it doesn’t have a 24/7 line, Next Insurance is the provider on this list most similar to Thimble (in terms of convenience and type of insurance) and may be a better option for you if the ability to reach someone is important to you.
A general liability policy with professional liability costs $67.11 a month. If you are just breaking into the space and trying to spread brand awareness by vending at a few craft shows, Thimble offers policies by job, month, year, and even hourly coverage.
In terms of coverage, Thimble’s crafter insurance policy is for small businesses with a sales cap of $500,000.
Convenience is where Thimble shines, offering online quoting, purchasing, and policy maintenance. Its app functions like a 24/7 call center, and there is no cap or added cost for requesting COIs. Both the app and its website are easy to navigate and user-friendly.
Customers are responding well to Thimble. On the independent review site Trustpilot, the provider has over 1,800 user reviews with an “Excellent” average score of 4.5 out of 5.
Hiscox: Best for Cyber Insurance
Pros
- You can get a quote and purchase a policy online.
- It’s a dedicated provider for small businesses.
- It offers in-house claims.
Cons
- Limits online are sometimes fairly low.
- It lacks a 24/7 call center.
- It does not offer an app for commercial policies.
Standout Features
- In-house claims services are available all the time
- Independent agents are available to advise you on your policy
- Account portal provides online access to manage your policy
- Responsive customer service helps with policy questions
Financial Stability
AM Best rated Hiscox an A (Excellent).
With over 500,000 policyholders, dedicated small business insurer Hiscox has developed policies for owners of both small and ecommerce businesses, including those based out of their homes. These policies come with a potential discount and limits more in line with your revenue and property and a cyber liability insurance program with numerous cybersecurity resources.
Indeed, Hiscox has focused on cyber security insurance, including studying the impact of cyber security issues around the world every year in its readiness report. It offers cyber security insurance as a standalone policy or bundled with another policy. It also has a 5% discount when you purchase two or more of its products.
Unfortunately, Hiscox does not operate a 24/7 call center for customer service. The Hartford is a traditional carrier with a 24/7 call center and great customer service scores, making it a great alternative to Hiscox if you’re looking for a strong customer experience.
A general liability policy with a $2 million limit costs $77.10 monthly. To add cyber security to the policy costs an additional $250.
If you’re a home-based web designer, Hiscox has a custom policy combining general liability, professional liability, and commercial property coverage.
Its property coverage includes protection against business interruption due to malfunctioning computer operations and losses related to electronic data. It also has $2,500 in coverage for personal effects destroyed or damaged by theft.
Hiscox’s cyber liability insurance offers some of the following coverages:
- Data breach expenses
- Cyber extortion
- Business interruption
- Data recovery
Hiscox provides you with a convenient experience by offering an online portal for managing your policy and requesting a COI. Its in-house claims team is available to help you if something goes wrong.
While Hiscox isn’t open 24/7, it maintains weekday hours from 7 a.m. to 10 p.m. ET—you can report a claim online at any time, day or night.
On its review page, Hiscox has published over 900 verified customer reviews with an average rating of 4.7 out of 5. While this is positive, it does have higher than average complaints in reports to the NAIC.
How We Evaluated the Best Ecommerce Business Insurance Companies
To determine the best ecommerce insurance companies, we used our proprietary evaluation system. We reviewed 21 insurers and have presented the five with the highest scores. In our evaluation, we focused on the customer’s needs, paying particular interest to convenience, financial ratings (AM Best), customer service, types of policies offered, and overall experience as a policyholder for a specific provider.
Types of Small Business Ecommerce Insurance
Ecommerce business insurance isn’t one single policy, but rather, it is a combination of policies. The type of policy you need will really depend on the size of your business and the type of industry it participates in. In general, there are four important coverage to look into for your business.
Nearly every type of business needs general liability. This is a broad type of liability insurance that will protect you from accusations that, because of your negligence, someone was injured, had property damaged, or their reputation was harmed. While this may seem like an odd policy for an online business, if your company has any interaction with customers, it is still a good idea to purchase.
Workers’ comp is required in nearly every single state. However, each state has a different threshold for when you must offer it. Some states include family members as employees required to be offered workers’ comp.
Check your state requirements to see if this insurance is required. It helps employees who become ill or injured on the job with medical bills and wage replacement.
Since your business is primarily online, cyber liability insurance is a must. This will help your business if you encounter a cyber loss, like a data breach or even a ransomware loss. Cyber liability will help with first-person costs associated with restoring data and third-person costs like creditor monitoring services for customers impacted by a breach.
If you’re a business that ships products to customers, where are you storing them, and are they protected? Commercial property insurance is a type of insurance with many subsets that lets you insure your commercial property in case something, like theft or a fire, happens to it. This coverage typically carries a deductible, which you’ll be responsible for every time you file a claim.
Frequently Asked Questions (FAQs)
Ecommerce insurance is insurance that covers small business owners who sell products online. While most of the policies are common, ecommerce businesses often require additional coverage, like cyber liability insurance and products-completed operations coverage. These policies protect your assets and help control costs when something goes wrong.
Any small business owner selling products or services online should consider purchasing ecommerce insurance. Some ecommerce platforms, like Amazon, require vendors to buy such insurance. If you sell soap on Etsy or books on Amazon, or if you operate a clothing store that ships products to customers across the country, then review your policy to see if you need ecommerce insurance.
Premiums for ecommerce insurance have a wide range and can vary from $500 to $10,000. When assessing risk for a business, insurers take many factors into account, such as industry, products sold, country of origin for the products, labeling, revenues, and claims history.
An ecommerce platform is software that businesses use to track and catalog products, purchases, and sales. If you are looking for one, check out our evaluation of the best ecommerce platforms.
Bottom Line
Business owners who work in online retail know that time is money. And we’ve saved you time by evaluating over 20 insurers to find the best ecommerce insurance companies. After careful evaluation, we found that The Hartford is our best overall provider. Get a quote today.
