Ecommerce insurance is a necessary investment to keep you, your business, and your workers safe. Whether we like it or not, there are a lot of risks involved in doing business.
Before we dive into our top 7 eCommerce insurance picks, let’s get familiar with some of the most common insurance policies available for your business.
General Liability Insurance
This covers legal, defense, and associated medical and reparative costs and protects your company from client or customer:
- Claims of negligence
- Claims of bodily injury
- Advertising injury (improper use of images)
- Property damage (caused by business operations)
- Libel and slander (harm to company reputation)
Business Equipment Protection
Also known as inland marine insurance, this covers your tools or equipment used on a daily basis. This covers tools that may have been stolen, damaged tools that may have worn down too quickly, or borrowed tools from another company that breaks while on loan.
Commercial Property Insurance
This covers any damage to a physical property or building used for business operations. This typically can also cover the equipment, documents, inventory, or other items on that property in the event of natural disasters, intentional or accidental damage, or theft. As such, some insurance companies combine this insurance with Business Equipment Insurance.
This insurance helps businesses get back on their feet quicker in the event of such property loss or damage. This covers business income interruptions, meaning you won’t have to worry about getting paid while your workplace gets fixed up.
Business Owners Policy (BOP)
This is basically a combination of General Liability and Commercial Property Insurance – two important insurance types for any business. Some companies also include additional areas of coverage.
Employment Practices Liability Insurance
This covers employee claims of sex, race, age, or disability discrimination, wrongful termination, harassment, and other employment-related issues. This helps you pay for defense costs and damage costs if found guilty.
Cyber Insurance
Cyber security insurance, or data breach insurance, provides coverage from online and technology-related threats. These threats include:
- Viruses
- Malware
- Security breaches
- Ransomware
- Other cybercrimes
Protect yourself from the fallout of potential cyberattacks that potentially cause data breaches or stolen customer information.
Worker’s Compensation Insurance
Commonly referred to as “Workman’s Comp,” this is one of the most common insurance coverages. In the event of a work-related injury, accident,or death, Workman’s Comp includes:
- Wage replacement – helps cover wages lost by employees during recovery from a work-related accident or illness
- Medical benefits – helps cover associated medical bills including rehabilitation costs
- Funeral costs and Income replacement – in the event of an employee death occurring at work, this is given in support of surviving family members
- Permanent injury benefits – compensation to workers who sustained injuries permanently affecting their ability to work
- Employer’s liability – in the event of an employee-filed lawsuit, this helps protect from financial losses
Professional Liability Insurance
Also known as errors and omissions insurance, this covers your business from customer and client claims of financial loss or harm due to professional services you’ve rendered. This includes claims that you rendered subpar service, delivered late or did not deliver at all, made a mistake, gave inaccurate information, or were negligent.
Umbrella Insurance
This is basically extra padding to your other policies. It fills in the gaps when coverage depletes on other plans or the costs are higher than one policy can handle.
Now that we’ve got a good idea of some of the most common policies, below are our 7 recommended providers for your eCommerce insurance needs.
1. Spott
Spott specializes in eCommerce insurance coverage made specifically for Amazon sellers. This company provides tailored liability insurance policies with flexible terms and competitive rates. You don’t pay any hidden fees.
Get the right insurance policy at the right price quickly and easily. Get a personalized quote in under 3 minutes. With their eCommerce expertise, they can evaluate your business and provide you with the specific coverage you need.
With Spott, you can stay protected and grow your business at a scalable pace.
Coverage
- Amazon Seller Insurance – liability insurance for eCommerce business
- Amazon Suspension Coverage – protect your top-selling Amazon products, stay compliant, get automated monitoring, expert guidance, and quick reinstatement
2. Ashlin Hadden Insurance
The Ashlin Hadden Insurance Agency has been in the space for 6 years. They have worked with many businesses and have experience with start-ups, small businesses, and even large enterprises.
They specialize in offering eCommerce insurance to Amazon sellers. Not only do they understand Amazon insurance requirements, but they keep updated on any changes in Amazon Terms of Service and other business agreements.
With Ashlin Hadden, you get affordable, comprehensive liability insurance plans. They even offer other plans not listed on their site. You can inquire about these through [email protected]
Coverage
- General Liability
- Product Liability
- Workers Comp Insurance
- Cyber Liability Insurance
- Professional Liability For Coaches/Consultants
- 3PL & Warehouse Insurance
- Inventory Insurance
- Cargo Insurance
- JANE
3. Thimble
Thimble is advertised as “the best insurance for the smallest businesses”. From pet sitters, janitors, and freelancers to restaurants and retailers, Thimble grants the A-rated insurance coverage you need.
With Thimble, you can get started quickly and buy a policy either through their app, online, or via phone call. Their scalable plans mean you can upgrade your plan when your business starts growing. Their flexible plans mean you can choose how long your coverage lasts, select how you pay, and stop anytime you want if the business is struggling.
Coverage
- Small Business Insurance
- General Liability Insurance
- Professional Liability Insurance
- Errors + Omissions Insurance
- Business Owners Policy
- Commercial Property Insurance
- Business Equipment Insurance
- Workers’ Compensation Insurance
- Cyber Insurance
- Event Insurance
- Drone Insurance
4. CoverWallet
Keep your company protected with CoverWallet’s commercial insurance plans. You get a smart digital wallet that includes your certificates, claims, payments, policies, and rates, with peer comparison.
Need guidance on the type of eCommerce insurance you need in your industry? No problem, they offer free consultations. Need to know ahead of time what these policies are going to cost? Sure thing, they provide free quotes with no commitments required. Need help understanding the process? Well, they have you covered with a dedicated representative who can answer your questions and help you through the process.
Coverage
- General Liability Insurance
- Business Owners Policy (BOP)
- Cyber Liability Insurance
- Umbrella Insurance
- Employment Practices Liability Insurance
- Workers Compensation Insurance
- Professional Liability Insurance
- Commercial Property Insurance
- Directors & Officers (D&O) Insurance – protect your assets from any harm caused by executive decisions; a type of Management Liability
5. Next
As their name suggests, Next desires to enable its clients to make risky business decisions to bring them to the next level. How? Through their flexible and tailored business insurance policies. Next caters particularly to small businesses whether they be engineers, retailers, or Amazon sellers.
If you’re a startup or in need of a team of 20, Next has the flexibility your business needs. Get started and save up to 10% if you bundle two or more of their policies together.
Coverage
- General Liability
- Workers’ Compensation
- Professional Liability
- Tools and Equipment
- Commercial Property
- Business Owner’s Policy (BOP)
6. The Hartford
The core advantage of Hartford is its care in providing sustainable, long-term solutions to its clients. Its commercial insurance helps protect business owners from losses with its many insurance options available. Whether it’s legal liability, employee-related risks, or property damage, Hartford has got you covered.
With 50 years in the business, over 18,000 reviews, and a near-perfect rating, Hartford is a good option to keep you, your business, and your employees safe. Since they have reliable, comprehensive plans, Hartford can get you the policies you need. Plus, they have a customer-first approach and the quality support that you need.
Coverage
- Business Property Insurance
- Data Breach/Cyber Insurance
- General Liability Insurance
- Professional Liability Insurance
- Workers’ Compensation Insurance
- Business Owner’s Policy (BOP)
- Commercial Umbrella Insurance
- Business Income Insurance
- Home-Based Business Insurance – Coverage for businesses operating from home
- Management Liability Insurance – Protection for executive members of the business from losses related to management
- Multinational Insurance – For businesses operating outside the U.S. or that have locations or employees abroad
7. Simply Business
Simply Business is one of the biggest business insurance providers in the UK with a record of servicing over 800,000 clients, including contractors, small- and medium-sized enterprises, and landlords.
Get a flexible policy within minutes customized to your business needs. A UK-based team of experts will ensure you are not alone in the process and will provide all the guidance you need. You can keep in touch with them online or by phone.
Coverage
They offer an eCommerce insurance package catered to online sellers.
- Online Retailer Insurance
- Public and product liability insurance for online retailers
- Employers’ liability insurance
- Business interruption insurance
- Stock/ Inventory Insurance
- Legal expenses Insurance
Final Thoughts on Ecommerce Insurance
It’s a risky world out there, and we want you to be ready for anything. From general coverage to more specific policies, it’s important to choose a provider that offers what your business needs. Hopefully, we’ve given you a good idea of what common eCommerce insurance providers offer.
Now, we weren’t able to dive into all the types of insurance that we mentioned here. If you’re interested in any of these 7 providers and want to gain further insights into their business and offerings, we encourage you to head on over to their websites.
It can be difficult to think about investing in insurance, especially as a startup. If you’re interested, we’ve also compiled a list of sites where you can get eCommerce funding to get your business off the ground.
