Every ecommerce business—be it an online retailer, an individual selling homemade items on Etsy or Amazon, or a larger brick-and-mortar operation with a warehouse—needs insurance to protect its operations. We evaluated 21 insurers, focusing on financial stability, policies offered, customer satisfaction, and convenience, and found the six best ecommerce insurance companies:
- The Hartford: Best overall provider for ecommerce insurance
- Simply Business: Best for comparing quotes online
- Next Insurance: Best for Amazon and Etsy sellers
- Thimble: Best for crafters and handmade products insurance
- Hiscox: Best for cyber insurance and home-based retailers
Best Ecommerce Insurance Companies Compared
Quote Process | Policy Purchase Process | Accessibility | Instant Certificate of Insurance (COI) | Financial Rating | |
---|---|---|---|---|---|
Online or through an agent | Usually over the phone but sometimes online | 24/7 availability | ✓ | A+ (Superior) | |
Online or over the phone | Online or over the phone | Depends on the provider | ✓ | A++ (Superior) | |
Online or over the phone | Online or over the phone | Monday to Friday 8 a.m. to 5 p.m. Eastern time | ✓ | A- (Excellent) | |
Online or over the app | Online or over the app | Monday to Friday, 9 a.m. to 6 p.m. ET | ✓ | A++ (Superior) | |
Online or over the phone | Online or over the phone | Monday to Friday 7 a.m. to 10 p.m. ET | ✓ | A (Excellent) | |
The Hartford: Best Overall for Ecommerce
Pros
- 24/7 availability
- Experienced small business insurance provider
- Cyber risk assistance
Cons
- May have to call to finish the quote
- May have to call to purchase a policy
- No mobile app to manage your policy or claims
Standout Features
- Custom coverage with endorsements and flexible limits
- In-house claims handled directly by The Hartford
- Responsive customer service to policy questions
- Online portal offers instant access to policy documents
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 regardless of the size or style of your business, 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.
We awarded The Hartford the highest score in our evaluation due to its customer service, financial strength, convenience, and the policies it offers. Complaints are lower than the national average, and it provides the convenience of online policy management and 24/7 accessibility.
If you would prefer to compare quotes from different providers before purchasing, then check out Simply Business. This online broker works with multiple top-rated carriers, so you can compare quotes before purchasing a policy online.
A business owner’s policy (BOP) containing general liability, $15,000 in protection for your property, and data breach insurance costs $687 annually with The Hartford.
The liability portion provides a limit of $1 million per occurrence and also protects against data breaches 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. And, in J.D. Power’s independent agent satisfaction survey, The Hartford was voted the third-best provider to work with.
You sometimes have to call to purchase a policy, but the process is quick and straightforward. You can typically get a quote online for most coverages and purchase the policy in just a few minutes.
Simply Business: Best for Comparing Quotes Online
Pros
- Quote and buy a policy online
- Same-day coverage
- Instant COI
Cons
- Not open 24/7
- Commercial property quotes may be unavailable online
- Must notify specific carrier to start a claim
Standout Features
- Online quotes available quickly
- Dedicated agent available to help manage your policy
- High reviews from customers about their experience
- Multiple coverages available for your ecommerce business
Financial stability: Simply Business works with multiple top-rated carriers—and it is also owned by one. Travelers purchased Simply Business in 2015, and AM Best rated Travelers an A++ (Superior).
Simply Business is an online broker that specializes in finding insurance for ecommerce businesses. It works with multiple top-rated carriers to bring you quotes, allowing you to compare prices and coverage to choose which policy is best for you.
You can get a quote in 10 minutes or less and purchase the policy online without needing to call and speak with anyone about it. However, if you do wish to review the policy with a person, licensed agents are available on weekdays.
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 our 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.
While you can purchase the policy entirely online, you also have the option to call and speak with an agent about other options to insure your ecommerce business.
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 4.8 out of 5 with over 1,000 reviews from users on Trustpilot.
Next Insurance: Best for Amazon Vendors & Etsy Sellers
Pros
- Ecommerce policy packages
- Online policy purchase
- 24/7 access to your policy
Cons
- Weekday-only service center
- Newer company that is still rolling out coverages across states
Standout Features
- User-friendly app for your policy and claim needs
- Available throughout the United States
- Policy offered in line with Amazon requirements
- Save up to 10% when you bundle two policies
Financial stability: Despite only being founded in 2016, Next Insurance has an AM Best rating of 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. Pro, its most popular offering, 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.
Because of its policies designed to work with Amazon requirements, its fast quote and policy purchase, and the wide range of coverages it offers, it is the best provider for Amazon vendors.
If you prefer a traditional carrier but one with 24/7 availability when you need it, check out Nationwide or The Hartford. Both, like Next Insurance, are traditional providers who can service the policy and resolve claims using their in-house teams. However, unlike Next Insurance, they maintain a 24/7 call center for claims and customer service.
You can 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.
Because of the nature of an ecommerce company, product liability is an important type of business insurance for online businesses. Next Insurance including it in the BOP is a great feature.
Next Insurance offers a great app that functions like a 24/7 service center when you need to speak with someone; however, the customer service team is available only on weekdays. You can make changes to your policy, pay your premium, request a certificate of liability insurance, sometimes called certificate of insurance (COI), and file claims through the app.
The provider also offers insurance for more than 1,300 different professions and industries. 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[2] has more than 5,000 user reviews with an average score of 4.5 out of 5 stars.
Thimble: Best for Etsy Sellers
Pros
- COI is available within 60 seconds
- Quick quotes online
- Purchase policy through app
Cons
- Weekday-only services
- Claims are managed by the carrier and not Thimble
- Reaching someone by phone is very difficult
Standout Features
- App for managing your policy
- Hourly coverage available for craft shows and fairs
- Available in all 50 states
- Customizable limits to increase as your business grows
Financial stability: Thimble offers policies underwritten by Markel Insurance and National Specialty Insurance Company (NSIC).
- Markel’s AM Best rating is A (Excellent).
- NSIC’s AM Best rating is A (Excellent).
Thimble is a very convenient ecommerce insurance provider with custom policies for crafters and solopreneurs who sell handmade products. It started out by insuring drones, and during the COVID-19 pandemic, it expanded into the maker and craft space, specializing in insuring small businesses crafting handmade items like soap, jewelry, and apparel. This makes Thimble a great option for ecommerce businesses that sell products online through platforms or in person at craft shows and fairs.
The provider 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. It also offers $5,000 in coverage for equipment.
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 1,500 user reviews with an “Excellent” average score of 4.4 out of 5.
Hiscox: Best for Home-based Online Retailers
Pros
- Online quote and policy purchase
- Dedicated provider for small businesses
- In-house claims
Cons
- Complaints are higher than expected
- No 24/7 call center
- Does not offer an app for commercial policies
Standout Features
- In-house claims services available all the time
- Independent agents available to advise you on your policy
- Account portal provides online access to manage your policy
- Responsive customer service to help with policy questions
Financial stability: AM Best rated Hiscox an A (Excellent).
Beginning with an underwriter working at Lloyd’s of London in 1901, Hiscox has the history, experience, and global reputation as a carrier you can count on for your ecommerce business. Since then, Hiscox has become a dedicated insurer of small businesses.
With over 500,000 small businesses insured, it has developed policies targeted at home-based business owners. These policies come with a potential discount and limits that are 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. Hiscox 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 because of 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.
Customer reviews for Hiscox are moving in a positive direction. Over the past few years, complaints monitored by the NAIC have decreased. On its review page[4], Hiscox has published over 900 verified customer reviews with an average rating of 4.7 out of 5 stars.
How We Evaluated the Best Ecommerce Business Insurance Companies
To determine the best ecommerce insurance companies, we utilized our proprietary evaluation system. We reviewed over 21 carriers and have presented the six 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.
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 or data breach 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. We’ve saved you time by evaluating over 20 carriers to find the best ecommerce insurance companies, with The Hartford being our best overall provider. Get a quote today.
Visit The Hartford for a quote
User review references:
Trustpilot | Simply Business
Next Insurance
Trustpilot | Thimble
Hiscox