Edited by:
Jason Morrison and Reviewed:
Jason Morrison
Online shopping is booming, with more customers turning to ecommerce stores to purchase the products and services they need every year. According to market research provider Statista, ecommerce sales are projected to grow by 509.4 billion dollars between 2023 and 2027. To compete in the digital marketplace, online entrepreneurs must provide quality products and top-notch customer service and ensure they protect their businesses from costly accidents or disasters. There are several ecommerce insurance companies to choose from, but we’ve rounded up the best of the best so that you can choose the right plan for your ecommerce store.
Business insurance for ecommerce can offer protection for companies of any size and often includes coverage for liability claims, property damage, and cyber attacks. This article will take you through the best insurance for online businesses in 2024, describe the pros and cons of each, and explain how to get coverage.
Hiscox: Best for Cyber Security Insurance
Nationwide: Best Full-Service Insurance Provider
The Hartford: Best for Home-Based Businesses
CNA: Best for Business Owner’s Policy (BOP)
GEICO: Best for Healthcare Professionals
Progressive: Best for Transparent Pricing
State Farm: Best for Businesses That Need Banking and Investment Services
Next: Best for Amazon Sellers
biBERK: Best for Professional Liability Insurance
Allstate: Best for Managing Ecommerce Insurance Costs
Gallagher: Best for Comparing Providers
Travelers: Best for Risk Management Solutions
USAA: Best for Military and Veterans
Ecommerce Insurance Companies Comparison Table
How to Get Coverage
BOP
Online Policyholder Account
AM Best Rating
Hiscox
Online or via phone
✔️
❌
A
Nationwide
Online or via phone
✔️
✔️
A+
The Hartford
Online or via phone
✔️
✔️
NA
CNA
Through a local agent
✔️
❌
NA
GEICO
Online or via phone
✔️
✔️
A++
Progressive
Online or via phone
✔️
✔️
A+
State Farm
Through a local agent
✔️
✔️
A
Next
Online
✔️
✔️
A-
biBERK
Online, or via phone or email
✔️
❌
A++ (Berkshire Hathaway rating)
Allstate
Online, via phone, or through a local agent
✔️
✔️
A+
Gallagher
Online
✔️
✔️
NA
Travelers
Through a local agent
✔️
✔️
A++
USAA
Online
✔️
✔️
A++
Best Ecommerce Insurance Companies
The best ecommerce insurance companies provide a range of property and liability coverage options. Insurance for an ecommerce business can help pay for employees’ medical costs if they are injured while working, third party medical or property damage expenses, defending lawsuits, and costs associated with cyberattacks.
Depending on your individual needs, insurance for an online business can include the following policies:
General liability: Covers bodily injury, property damage, and defending lawsuits.
Product liability: Can help pay for injuries or property damage caused by a defective product.
Professional liability: Helps pay for defending lawsuits if you made a professional mistake that caused damages to a third party.
Commercial property: Protects your brick-and-mortar storefront, inventory, storage space, business equipment, and tools.
Cyber: Covers data breaches, cyber attacks, and damages from defective hardware.
Business interruption: This policy can protect you from loss of income from covered incidents such as fires, storms, or theft.
Business Owners Policy (BOP): A BOP combines policies, such as liability and property coverage, and often offers them at a discount.
Hiscox: Best for Cyber Security Insurance
Benefits
Hiscox has been around since 1901 and provides customized (and instant) coverage options, including general liability, errors and omissions (professional liability), cyber security, workers’ comp, and BOP insurance. Hiscox’s cyber security insurance can cover phishing scams, ransomware demands, defending lawsuits related to cyber security issues, data breach recovery expenses, and revenue lost due to technological failure. In addition, Hiscox’s CyberClear Academy provides training to the employees of cyber insurance policyholders to ensure that they know how to prevent online security incidents.
Pros
Ability to make monthly payments with no additional fees
Certificate of Insurance (COI) available online
Offers umbrella insurance to protect your business from large claims
Cons
No online accounts for policyholders
How to Get Coverage
You can get a quote online, or call 1-877-378-0885 (speech or hearing impaired customers can dial 7-1-1).
Nationwide: Best Full-Service Insurance Provider
Benefits
Nationwide provides a complete array of business insurance options (including BOP, business property, general liability, professional liability, workers’ comp, and cyber policies), as well as vehicle, property, and personal insurance.
Pros
Nationwide’s Loss Control Services team helps policyholders review their business operations to identify and mitigate risks
Provides coverage for businesses of all sizes
24/7 claims service
Cons
Nationwide’s BOP insurance is not suitable for businesses with more than 100 employees or $5 million in sales
How to Get Coverage
You can call 855-224-9869, or fill out a form for an online quote.
The Hartford: Best for Home-Based Businesses
Benefits
The Hartford offers business insurance specifically for home-based businesses. While homeowners insurance can help cover your home and personal items, business insurance may be necessary to provide complete protection for technology, business files, and equipment, and to defend lawsuits against your ecommerce business. The Hartford offers business insurance for home-based businesses of all sizes, and its policies include general liability insurance and a customizable BOP to which you can add endorsements (policy modifications) as needed.
Pros
The Hartford’s website explains insurance in a way that is easy to understand
Can talk to live agents via its online chat service
Ability to pay your business policy premium or start a claim online without logging in
Cons
No financial strength rating from AM Best
How to Get Coverage
Call 855-901-9187 or start a quote online on Hartford.
CNA: Best for BOP
Benefits
CNA offers several business insurance policies, including general and professional liability, property, cyber, and workers’ comp coverage. It provides two different BOPs: CNA Connect and CNA Paramount. CNA Connect is designed for small businesses and includes property and general liability coverage. It offers over 300 endorsements which you can use to customize your plan. CNA Paramount includes property, crime, and umbrella liability (extra coverage for large claims) policies, as well as general liability extension endorsements, which are tailored to your specific industry.
Pros
Direct online billing portal, or you can sign up for autopay
Risk management tools available for policyholders, including perception surveys, benchmark checkpoints, data gap analysis, and risk and virtual ergonomic assessments
Customizable BOPs for small and mid-sized businesses
Cons
The website’s drop-down menu can be distracting and laggy
How to Get Coverage
You can use CNA’s agent locator or agent matching tools to connect with a local agent. Get the quote from CNA.
GEICO: Best for Healthcare Professionals
Benefits
Whether you are a yoga instructor offering an online course or a physical therapist selling digital exercise plans, health professionals with ecommerce stores have special business insurance needs. GEICO partners with Berxi (part of Berkshire Hathaway Specialty Insurance) to provide medical malpractice insurance designed to protect medical professionals against claims of negligence or malpractice.
Pros
Online business insurance calculator tool can help determine the right coverage for your business
GEICO offers a full range of insurance products, including vehicle, property, umbrella, life, and pet coverage
GEICO’s website includes a glossary that defines common insurance terms
Cons
The online quote tool may not be able to process your information
How to Get Coverage
You can call GEICO at 1-866-509-9444 or start a quote online (you may have to call an agent to get coverage).
Progressive: Best for Transparent Pricing
Benefits
Progressive offers many policies that ecommerce businesses need, including BOP, general and professional liability, workers’ comp, and cyber insurance. While insurance pricing can be tricky due to the variety of factors that help determine a businesses’ unique coverage needs, Progressive provides potential customers with both the median and average costs for each of its business insurance policies.
Pros
24/7 customer support
Offers business insurance in 49 states
Lists the types of insurance available in and required by each state it insures, and provides links to resources for business owners in each of those states
Cons
If you use Progressive’s online quote form, it may direct you to fill out another form or call a third-party insurance company to get coverage
How to Get Coverage
Call 1-855-640-9311 or fill out Progressive’s online quote form.
State Farm: Best for Businesses That Need Banking and Investment Services
Benefits
State Farm offers BOP, liability umbrella, workers’ comp insurance, and banking and investment options. Ecommerce companies that require checking or savings accounts, business loans, or retirement plans for owners or employees can benefit from State Farm’s business banking and investment services.
Pros
Ability to pay a bill or get a COI without having to log in
Insures over 300 professions
BOP includes general liability, property insurance, loss of income, equipment breakdown, and a professional liability coverage option
Cons
Online chat requires an agent to contact you to get answers to specific questions
How to Get Coverage
The only way to get coverage through State Farm is to find a local agent through its agent locator tool.
Next: Best for Amazon Sellers
Benefits
Next specializes in small business insurance, and offers general liability, commercial property, and commercial auto policies that entrepreneurs that sell on Amazon may need. Amazon requires its Pro Merchant vendors with gross sales of $10,000 or more to have general liability insurance.
Pros
Next provides a 10% discount to Amazon sellers that bundle two or more policies
Attractive and easy-to-navigate website
Claims decisions within 48 hours
Cons
Chat support may be delayed depending on your queue position
How to Get Coverage
Next’s online quote process is quick and easy, and you can purchase coverage once you have submitted your business information.
biBERK: Best for Professional Liability Insurance
Benefits
biBerk provides all of the insurance policies most ecommerce businesses would need, including general and professional liability, workers’ comp, BOP, commercial auto, umbrella, and cyber coverage. Ecommerce businesses that provide advice or expertise should have professional liability insurance in case they get sued for making a mistake or giving inaccurate information that harms their customers. You can save up to 20% over other providers when you purchase professional liability insurance from biBerk.
Pros
Fast and easy online quote process
Insures over 200,000 small businesses
Able to get a COI either online or over the phone
Cons
Policies not available in all states
How to Get Coverage
You can get a quote and purchase coverage online, call 1-844-492-0967, or email experts@biberk.com
Allstate: Best for Managing Ecommerce Insurance Costs
Benefits
Allstate provides essential coverage for ecommerce stores, including BOP, liability, property, business interruption, and equipment breakdown coverage. Its website contains tips for reducing your business insurance costs, such as regularly reviewing your policies, bundling policies, and increasing your deductibles, as well as information to help you figure out the kinds of coverage your individual business needs.
Pros
Provides information on disaster and business succession planning
Offers vehicle, property, life, identity, phone, pet, and personal umbrella insurance
Provides home, renters, and condo insurance for home-based businesses
Cons
The business quote tool is not linked to a conspicuous button
How to Get Coverage
To get coverage through Allstate, you can fill out an online quote form, use its agent locator tool, or call 1-800-837-6510. If Allstate can’t provide coverage, it will redirect you to third-party ecommerce insurance companies.
Gallagher: Best for Comparing Providers
Benefits
Gallagher is an insurance brokerage that works with multiple ecommerce insurance companies, meaning that it can help you compare prices and services between several different providers to find the best fit for your business. Gallagher offers a full range of business insurance policies suitable for ecommerce businesses, including property, liability, workers’ comp, cyber, and commercial umbrella coverage.
Pros
Recognized as one of the “World’s Most Ethical Companies” by the Ethisphere Institute, a company that rates ethical business practices
Gallagher Perks provides policyholders with business and travel discounts
Gallagher’s Small Business Expertise page contains information about managing, scaling, and protecting your business
Cons
Have to wait for a callback from a representative once you fill out the online quote form
How to Get Coverage
You can fill out an online quote form and then wait for an agent to contact you. You can also call 833-292-9441 with any questions.
Travelers: Best for Risk Management Solutions
Benefits
Travelers offers property, liability, cyber, and BOP coverage for ecommerce businesses. It also provides comprehensive risk control solutions to its policyholders, including training programs, self-assessments, action plans, and a library of risk management resources.
Pros
Industry-specific coverage
Online bill pay, claim reports, policy info, and COI access
Over 1,000 risk control tools available for policyholders
Cons
The only way to get answers to policy service questions is through a local agent
How to Get Coverage
You can get coverage from Travelers via a local insurance agent.
USAA: Best for Military and Veterans
Benefits
USAA offers U.S. military members (and their families) insurance products and discounts on services from car rentals and travel deals to shopping and storage. Its business insurance policies include general, professional, and cyber liability, BOP, and workers’ comp.
Pros
USAA offers advice about military life on its website, including deployment and military pay calculators
USAA’s Business Resource Center provides members with pre-employment screening reports and links to tax and shipping services
Members can receive discounts on daily business expenses and professional security systems for their businesses
Cons
Membership only available to military
How to Get Coverage
To get coverage with USAA, you first need to create a free account. You can then use its online quote tool to create a business profile and get a quote.
Methodology
We chose ecommerce insurance companies with features that ecommerce businesses need, including high AM Best (a financial rating agency) financial strength ratings (ratings based on insurance providers’ creditworthiness), online accessibility, multiple coverage options, discounts for bundled policies, and exceptional customer service.