6 Best Ecommerce Business Insurance Companies for 2023

Thang Truong
Thang Truong
Updated on:

Even though e-commerce companies operate in the virtual universe, they face some significant real-world risks. While it’s not possible to eliminate all the risks faced by virtual sellers, it’s possible to gain control over them by purchasing the right insurance coverage.

This article reveals the 6 best business insurance companies for e-commerce businesses, along with all you need to know to get the right coverage.

6 best business insurance companies for e-commerce firms

  • Simply Business: Best for ecommerce businesses to compare and find the cheapest coverage online
  • CoverWallet: Best for finding affordable e-commerce business insurance from reputable insurance companies
  • NEXT: Best online buying experience for online business owners
  • Progressive: Best for discounted e-commerce business insurance, especially for commercial auto coverage
  • The Hartford: Best for buying e-commerce business coverage through an agent
  • Hiscox: Best for coverage from a small-business-focused insurance company

Simply Business: Best for ecommerce businesses to compare and find the cheapest coverage online

Simply Business doesn’t sell insurance direct. It’s a broker that helps e-commerce business owners find cheap insurance coverage that they can afford through the companies in its network.


  • It’s simple to get several quotes from different insurance companies through Simply Business. They. can also help you compare these quotes to find the best and cheapest one for your e-commerce business.
  • Simply Business regularly reviews the insurers on its platform to ensure they’re reputable.
  • It offers a complete online library to help you learn about business insurance coverage and preventing risk.


  • Policy underwriting, claims, and customer service is handled by third-party insurers, not through Simply Business.
  • Simply Business is owned by Travelers, a large small business insurer based in the United States. However, it’s headquartered in the United Kingdom. 
  • You can’t file a claim through Simply Business. It must be done through your insurance company.

Here’s a sample e-commerce business insurance quote from Simply Business.

CoverWallet: Best for finding affordable e-commerce business insurance from reputable insurance companies

CoverWallet is an online insurance broker, much like Simply Business. It makes it easy for e-commerce business owners to get insurance quotes from several companies. One differentiation between CoverWallet and Simply Business is that CoverWallet tends to work with more reputable and well-known insurance companies, even though they provide quotes online less often.


  • Coverage through CoverWallet comes from high-quality insurance companies.
  • If you want affordable insurance coverage, CoverWallet can save you the time of getting quotes from several insurers to compare cost and coverage. 
  • If you purchase your insurance through CoverWallet, you can use its online tools to pay your premiums, file claims, and download your proof of insurance.


  • CoverWallet doesn’t always provide you with quotes online. Sometimes, especially if your business is a complex one with unique needs, you have to speak with a representative to finalize your quotes.
  • You may pay higher premiums if you get coverage through CoverWallet compared with buying directly from an insurance company.
  • You cannot make claims through CoverWallet. You must do it through the insurer that provides your coverage. 

Next: Best online buying experience for online business owners

Next is changing how e-commerce businesses purchase insurance. It’s built a system from the ground up that makes securing coverage simple.


  • Even though Next is a virtual insurer, you can get expert help over the phone when you need it. 
  • The Next operation is focused on delivering a world-class online insurance buying experience. 
  • You can purchase a policy, file a claim or get a certificate of insurance any place, any time, every day of the year.


  • Next’s insurance prices aren’t always the lowest.
  • It hasn’t been in business as long as some of the other insurance companies on our list.
  • Next’s customer service rankings are solid but not as high as some of the other providers we recommend.

Progressive: Best for discounted e-commerce business insurance, especially for commercial auto coverage

Progressive was established in 1937 and has grown into a major U.S. insurance company. It’s known for its policy discounts featured in its ubiquitous television commercials.


  • Progressive is a solid insurance company with a good track record.
  • It offers many discounts that could help save you money on e-commerce business coverage.
  • It’s relatively easy for e-commerce business owners to get a quote from Progressive.


  • Progressive only offers vehicle coverage direct. Other types of insurance come from different providers.
  • Despite Progressive’s relatively reasonable insurance costs, it’s still wise to get other quotes to ensure you get the best e-commerce insurance protection at a fair price.
  • Progressive doesn’t offer all discounts in all states, so it’s essential to check with other insurers to see if you’re getting all the discounts you’re entitled to.

The Hartford: Best for buying e-commerce business coverage through an agent


  • You can purchase customized e-commerce coverage from an agent affiliated with The Hartford.
  • You can get advice and support during the buying process and beyond from your agent.
  • The Hartford is a strong, stable, and highly ethical company that’s been in business for more than 200 years.


  • The Hartford offers limited online insurance buying and servicing capabilities, which can be an issue for digital-centered business owners.
  • The Hartford tends to be more expensive than many other insurers, especially online ones.
  • Some of the company’s back-end systems aren’t as modern and up-to-date as those of newer insurers.

Hiscox: Best for coverage from a small-business-focused insurance company

Hiscox only offers insurance for small businesses. It is a leading specialist in the coverage.


  • It’s easy to buy business insurance for e-commerce companies from Hiscox online. A rep can also help you customize your coverage to meet your unique business needs.
  • If you choose Hiscox for your business coverage, you can rest assured knowing you’re entrusting your protection needs to a firm that’s been in operation for 120 years. 
  • More than 400,000 small businesses trust Hiscox for their insurance needs.


  • Hiscox is not based in the United States. It’s headquartered in the United Kingdom.
  • Some of its record-keeping systems aren’t as modern as those of tech-based insurers.
  • Hiscox may not offer all the coverage e-commerce companies need.

Which insurance coverage e-commerce companies are required to have? 

E-commerce businesses are almost always required to have certain forms of insurance. You may need insurance to:

  • Sell and ship products. Online sellers like Amazon will likely require you to have general liability insurance.
  • Manufacture, sell, and/or distribute products online. It is likely that you will need product liability insurance. This will protect you if your customers suffer from using your products and decide to sue you. Some insurance companies offer product liability insurance as an add-on coverage in their general liability insurance policy. This can help you save money.
  • Collect payment from your customers online through their credit cards. You should have cyber liability insurance to protect yourself if your system is hacked and your customers’ sensitive information is stolen.
  • Hire employees. Most states require businesses with employees to have workers’ compensation insurance. 
  • Drive for business purposes. You must have business vehicle insurance if you drive for work purposes, for instance, when transporting items to a shipper. Your personal auto insurance won’t cover you if you have an accident. 
  • Purchase or rent business property. If you need to buy or rent a business location, for example, an office or warehouse, it’s likely your lender or landlord will require you to get business property insurance.

Your insurance agent or a representative at our recommended insurers can advise you on the coverage you need.

Do I need insurance to sell on Amazon?

Yes, Amazon requires most third-party sellers that reach a defined sales threshold to provide proof of general liability insurance with at least $1 million in coverage. You will likely be asked to submit a certificate of insurance with Amazon listed as an additional insured. 

Learn more at The Best Amazon Seller Insurance Companies and Amazon Seller Insurance Cost

What kinds of insurance do e-commerce businesses need?

The most common coverages e-commerce businesses get are:

General liability insurance for e-commerce businesses 

General liability insurance is necessary coverage, especially if you sell on Amazon. It typically meets the platform’s insurance requirements. General liability insurance protects against a wide range of the risks e-commerce businesses face. It covers you if someone (non-employee) is injured on your business property or you damage property that doesn’t belong to you while conducting business. General Liability can help you pay for:

  • Medical payments
  • Property damage
  • Legal fees and judgments.

Learn more at the best general liability insurance companies

Product liability insurance for e-commerce businesses 

If you manufacture, sell, and/or distribute any product, you may need to have product liability insurance to protect yourself and your business. The coverage helps pay legal expenses if someone claims that a product you sold, manufactured, or distributed caused an injury or property damage, and they sue you.

Learn more at the best product liability insurance companies and how much product liability insurance costs

Commercial vehicle insurance for e-commerce businesses 

Commercial vehicle insurance covers you and those who work for you when driving for business. Most states require this coverage for business-owned vehicles. It helps pay for medical expenses, property damage, and other losses related to auto accidents, theft, and vandalism. Personal auto insurance usually won’t cover incidents that happen while driving for work reasons. Commercial vehicle insurance can help pay for:

  • Medical expenses
  • Collision repairs
  • Rental reimbursement if you’re unable to use your vehicle.

Learn more at the best commercial auto insurance companies

Workers’ compensation insurance for e-commerce businesses 

Workers’ comp insurance is typically required by state law for business owners who have employees. Workers’ compensation insurance can help pay for medical care and lost wages resulting from a workplace illness or injury, along with other benefits. It also helps lessen the possibility that you’ll be sued by an employee harmed while working, even if you’re found to be negligent. Workers’ comp helps cover:

  • Medical expenses
  • Lost wages
  • Employer liability.

Learn more at the best workers comp insurance companies and how much does workers comp insurance cost

Cyber liability insurance for e-commerce businesses 

Any business that handle consumer sensitive information such as personal information and credit card information should have cyber liability insurance. The coverage protects small businesses against expenses resulting from a data breach or cyber attack. It covers:

  • Costs to notify customers and clients about an incident
  • The expense to provide credit monitoring services for impacted parties
  • Legal fees and settlements if you’re sued over a cybercrime
  • Fines
  • Public relations costs to restore the reputation of your business.

Learn more at cyber liability insurance cost and the best cyber liability insurance companies

Commercial property insurance for e-commerce businesses 

Commercial property insurance is often purchased by owners who own or rent physical business locations. Commercial property insurance can help protect your business equipment, inventory, and the building itself, whether you own or rent it. If your business property is harmed because of a covered event, such as a burst water pipe, fire, theft, or vandalism, property insurance can help pay replacement and repair costs as well as business income lost because you can’t operate your e-commerce operation while you get back up and running. Commercial property coverage can help pay for:

  • Damaged equipment and inventory
  • Lost income
  • Operating expenses.

These are just some of the most common coverages purchased by the owners of e-commerce businesses. An experienced business insurance agent or company representative can advise you on the specific coverage you need.

Learn more at the best commercial property insurance companies and business renters insurance cost

How much does e-commerce insurance cost?

The average cost of a general liability insurance policy for e-commerce businesses is $28 per month, or $336 a year. This is for $1M coverage limit and $500 deductible. Most ecommerce businesses pay from $14 to $65 per month for a $1M general liability insurance policy.

As we learn above if you have more coverage, you will pay more. Below are the average costs of different insurance coverage for e-commerce businesses:

E-commerce business insurance coverageAverage costs
General liability insurance $28 per month
Product liability insurance $25 per month
Cyber liability insurance $67 per month
Commercial auto insurance$92 per month
Workers comp insurance $52 per month per employee
Commercial property insurance $113 per month

These are just the averages. Your rates will be different. Be sure to shop around with a few companies or work with a good broker like InsurePro, Simply Business, or CoverWallet to compare several quotes to find the chapest one for you.

Learn more details at how much does e-commerce business insurance cost

What affects the e-commerce business insurance cost?

The cost of coverage is dependent on many factors, including:

  • The kinds of products you sell
  • The business property you own or lease
  • Where your inventory or supplies are located
  • Number of employees and what they do
  • The types of vehicles you use for work
  • The types and levels of coverage you buy
  • Your deductibles

What’s critical is that you get quotes from several of the insurance providers on our list so you can compare them to find the best combination of cost and coverage for your business.

Thang Truong

Thang Truong covers small business insurance and small business success at BravoPolicy. He is a licensed P&C insurance agent. Previously, he held product leadership positions at realtor.com, Capital One, NerdWallet, and Mulberry Technology. He holds a MBA degree from UC Berkeley - Haas School of Business.

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