Ecommerce Business Insurance
4.8/5 on
- Meet platform and legal requirements
- Protect against product liability and shipping mishaps
- Scale your business with flexible, made-to-order coverage
What is Ecommerce Business Insurance?
Ecommerce business insurance is designed to protect retailers and sellers from claims related to their products and online business. It’s a type of small business insurance that helps:
- Pay for product-related claims
- Cover the cost of customer injuries
- Easily fulfill online insurance requirements
Small business ecommerce insurance has your back while you sell on your own site, or through third-party marketplaces like Amazon, eBay, or Etsy.
Who Needs Ecommerce Business Insurance?
Whether you’re a full-time entrepreneur or a weekend side-hustler, if you sell goods online, product business insurance helps protect your hard work. The most common sellers we cover include:
- Shopify Stores
- Drop Shippers
- White Label Retailers
- WooCommerce Stores
- Indie Ecommerce Brands
- Home-Based Online Seller
Did You Know? Even if your platform doesn’t require insurance yet, you can still be held liable for injuries or damages caused by your products.
Why Do Ecommerce Sellers Need Insurance?
Your shop may be digital, but your risks are very real. If a product you sell causes harm, you could be legally responsible, even if you didn’t make it. That’s where product liability protection comes in!
Keep your shop compliant: Our marketplace-approved policies help you easily meet or exceed insurance requirements for sites like Amazon
Protect against lawsuits: Even if you didn’t manufacture the product, you could be held liable for injuries or property damage it causes
Cover losses and liabilities: Lower or eliminate the cost of a claim, like medical bills, legal fees, lost wages, repairs, and more
Guard your customer data: Data breaches and cyberattacks can affect even small online shops, but cyber liability helps cover the fallout
Sell with confidence: From shipping accidents to inventory losses, ecommerce coverage helps keep your business moving forward
How Much Does Ecommerce Business Insurance Cost?
Most online sellers pay an average of $116 per month or less for small business ecommerce insurance from Insurance Canopy.
Each policy is tailored specifically to your product and business, so you only pay for the coverages you need. The cost of your ecommerce liability coverage depends on:
- Annual Revenue: Higher sales volume increases risks, which can raise your premiums
- Product Type: High-risk or high-value items, like supplements or jewelry, may cost more to cover
- Sales Platform: Selling on platforms with stricter insurance requirements can mean paying for more coverage
- Claims History: Previous claims may raise some red flags, which can impact your rate
- Desired Coverage Limits: Like any upgrade, increasing limits or adding extra coverage comes with additional costs
- Business Operations: Whether you dropship, warehouse, or private label affects your overall coverage needs and costs
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They provided clarity on the importance of insurance for a first time business owner in the cleaning space and provided clear insight next steps and options for coverage.
Evergreen Multiservices
February 2, 2026 -
Extremely user friendly website, super affordable and very little time needed to apply.
Carl Sari
January 31, 2026 -
Excellent company, Great service, the best!!!
Claudina Adams
January 15, 2026 -
Super affordable insurance for a small business like myself super happy to be able to provide this to my customers really helps of landing more gigs
Alex
January 5, 2026 -
Really went the extra mile to find the appropriate coverage for my business.
Daisy B
January 2, 2026 -
Canopy provided escatly what I neede to book the gig, and at a very affordable price.. Thank You!
Andy Anderson
December 22, 2025 -
Easy. Convenient. Trustworthy. Came thru in a moments notice
Eddie K
December 19, 2025 -
Affordable liability insurance for DJ's. Easy to set up and understand. I've been with them for several years and am happy with their service.
Peter Flessas
December 14, 2025 -
So easy to sign up. I hope I never have to use the insurance portion but most hotels require it for corporate gigs
Yuri Gonzalez
December 11, 2025 -
This company is great. They are very helpful and they have great prices for insurance options that cover what you need!
Jacob Serrano
December 6, 2025
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They provided clarity on the importance of insurance for a first time business owner in the cleaning space and provided clear insight next steps and options for coverage.
Evergreen Multiservices
February 2, 2026Extremely user friendly website, super affordable and very little time needed to apply.
Carl Sari
January 31, 2026Excellent company, Great service, the best!!!
Claudina Adams
January 15, 2026 -
Super affordable insurance for a small business like myself super happy to be able to provide this to my customers really helps of landing more gigs
Alex
January 5, 2026Really went the extra mile to find the appropriate coverage for my business.
Daisy B
January 2, 2026Canopy provided escatly what I neede to book the gig, and at a very affordable price.. Thank You!
Andy Anderson
December 22, 2025 -
Easy. Convenient. Trustworthy. Came thru in a moments notice
Eddie K
December 19, 2025Affordable liability insurance for DJ's. Easy to set up and understand. I've been with them for several years and am happy with their service.
Peter Flessas
December 14, 2025So easy to sign up. I hope I never have to use the insurance portion but most hotels require it for corporate gigs
Yuri Gonzalez
December 11, 2025 -
This company is great. They are very helpful and they have great prices for insurance options that cover what you need!
Jacob Serrano
December 6, 2025Great experience, quick and easy to understand with what I needed for my business. Highly recommend!
FrankLynn Rae
October 28, 2025Very helpful customer service! Prompt, punctual, effective! No bots or long waits to get assistance.
Maria Ciccone
October 19, 2025 -
Canopy insurance has made affordable, band insurance needed for major venues. Thank you for your fast and easy service Stan Zizka's Del Satins
stan zizka
October 5, 2025Getting a vendor policy was quick and fairly priced compared to other quotes.
Kristine Fullerton
October 3, 2025Thank you so much
Steve Monreal
July 11, 2025 -
I needed a portable policy as a yoga instructor. I found this company in an online search. Called and got details from them, was quite surprised at how affordable... Read More it would be. Then when I was ready to make my purchase, I called again. Was explained to me that everything was done online, I told the lady on the phone I didn't want to make this kind of purchase online with no guidance. She was so helpful and kind and patient! Walked me thru every page of the form and honestly didn't take long at all. Hope I never need to use the policy but nice to know I have it.
Jamie Calaway
July 4, 2025Very easy & quick experience. We got insurance in no time with no hassle. Thank you!
Robert Earnest
July 4, 2025I am glad I went with them. I needed a last minute policy to cover an event I was doing and they had exactly what I needed at a... Read More reasonable price. I definitely would use them in the future,
Deloris Pacheco
June 27, 2025 -
Very easy to renew policy
Elyce Nissinoff
June 18, 2025Representative Sarah was very helpful. Walked me through every step and not to mention the price even matched the service! Would recommend to any and everyone.
queenkiam
June 18, 2025Would have 5 starts, but not right now. This is the first time I have ever had to pay for an additional insured ever in 20 year's. They either have... Read More a way to input the information or you can call or email to request it.
Anthony Burgess
June 18, 2025 -
Very user friendly platform. Multiple options. Very good pricing. Needed liability insurance in order to secure a very good paying event for my solo tribute show. Was set up within... Read More 15 minutes and had the signed contract in my possession 30 minutes later.
Michael Riley
June 18, 2025Needed DJ insurance for Memorial Day weekend & was squared away within an hour for 2 events! Highly recommend
Jay Solis
June 18, 2025What a lovely experience I had with Insurance Canopy! Easy and fast sign up, great policy, matches my needs as a self-employed business owner. Highly recommend!
Masha Rusanov
June 18, 2025 -
great little company, with fair pricing, for entertainers who need occasional coverage. however, they have long hold times to speak to an agent, and their customer service left a little something... Read More to be desired. 🤷🏻♀️ overall, would recommend! 🙂
Gretje Angell
June 18, 2025Provides event insurance at a very reasonable price compared to other companies. Easy to purchase and provide proof of insurance.
David Fox
May 18, 2025They can help.you with the right Insurance you need, and the lowest price
Alvaro Baltazar
May 18, 2025 -
everything is excellent
Radames Martinez
May 18, 2025Extremely affordable event insurance and an easy to work with system and team that will advise you every step of the way!
Ishan Arvin
May 18, 2025Affordable for dance & yoga folk. Thumbs up!
Maia Claire
May 18, 2025
Get custom coverage for your online business with a fast application, instant proof of insurance, and licensed support whenever you need it.
Ecommerce Insurance for Small Businesses
Insurance Canopy offers core coverage and customizable add-ons to meet your specific needs! Our insurance for ecommerce businesses includes general liability and product liability insurance, with up to $1 million in coverage per claim and $2 million total per policy year.
Looking for extra protection? Our licensed agents can help you customize your plan with higher limits and add-on coverages tailored to your business model.
General liability insurance covers third-party injury or damage claims that are not directly caused by your products, like if someone slips while picking up an order from your home office or at an in-person event. It also helps with legal costs if you’re ever accused of advertising injury, like copyright infringement.
Product Liability Insurance protects you from claims related to the products you sell, even if you didn’t manufacture them. If a customer claims damages caused by something you sold, this coverage helps pay for legal defense, medical bills, and settlements.
Product Recall Insurance covers the costs of pulling defective, mislabeled, or unsafe products from shelves or online listings.
Cyber Liability Insurance helps cover costs like customer notification, credit monitoring, and reputation repair if your website or sales platform is hacked. This coverage is crucial if you collect customer emails or payment information.
Workers Compensation Insurance covers medical bills and lost wages if a team member is injured while packing orders or handling shipments. In most states, workers comp is legally required if your business has employees besides you (even if they’re part-time).
Inland Marine Insurance protects your inventory and business property while in transit. This coverage is essential if you ship products yourself, store goods in a warehouse, or sell at pop-ups or trade shows.
E&O Insurance covers liability if you offer customization, design services, or product advice that leads to a customer loss. It can be especially useful for sellers who create personalized or made-to-order items.
The Amendment of Coverage Territory endorsement extends your protection to sales or claims outside the U.S. It’s ideal for ecommerce businesses that ship internationally.
The Primary & Non-Contributory endorsement ensures your policy responds first to a covered claim before any other policies. This may be required in some contracts, like with Amazon or shipping fulfillment centers.
A Waiver of Subrogation protects parties like a partner, landlord, supplier, or fulfillment center from being held financially responsible after a claim involving your business. This coverage is often a must-have for B2B agreements.
A 30-Day Cancellation Notice sends a “heads-up” to your platform or another party if your policy is ever canceled. It’s a frequent requirement in marketplace agreements or commercial leases.
Don’t worry, we’ve got you covered.
- Apply online in 10 minutes or less
- Get immediate, same-day coverage
- Get instant access to your policy
- Receive A+ rated coverage
- Access your online dashboard 24/7 to make changes to your policy, download your certificate of insurance, or add additional insureds
FAQs About Ecommerce Business Insurance
Do I need ecommerce insurance if I sell on Amazon or Etsy??
Yes, you need ecommerce insurance if you sell on Amazon, but not if you sell on Etsy.
Amazon requires liability insurance once you pass a certain sales threshold. Etsy does not, but you’re still on the hook if something goes wrong with a product you sell.
What’s the best ecommerce insurance for a small business?
The best ecommerce insurance for a small business is a policy that includes:
- General and product liability insurance
- Add-ons like cyber or product recall (based on your needs)
- Proof of insurance that meets platform requirements
Can I get sued even if I didn’t manufacture the product?
Yes, you can be sued even if you didn’t manufacture the product. As the seller, you’re part of the distribution chain and can be held liable for defective or dangerous items, even if you sourced them from someone else.
Will this policy meet Shopify’s seller requirements?
Shopify does not currently have seller requirements for insurance, but this policy is still designed to protect your business from product-related lawsuits that could shut down your store.
Still have questions regarding our policies? Feel free to reach out to our licensed insurance agents. We are available Monday through Friday from 8am–8pm ET.
Product liability lawsuits happen when a product causes bodily injury or property damage,
When you sell a product, you’re also taking on responsibility for what happens
You make great food, maybe even the best. But here’s the uncomfortable truth: