Ecommerce business insurance averages $65 monthly. Costs range from $19 to $121 based on coverage types and your location.
Get matched with cheap ecommerce business insurance below.
Updated: February 2, 2026
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Ecommerce business insurance costs range from $227 to $1,457 annually on average, depending on your coverage type, state and sub-industry.
Your ecommerce insurance premiums depend on location, claims history, property types serviced and employee count when insurers calculate your rates.
Shop multiple business insurers, bundle policies, increase deductibles and pay annually to find affordable ecommerce business insurance costs.
Average business insurance costs for ecommerce companies:
| BOP | $104 | $1,250 |
| General Liability | $73 | $882 |
| Professional Liability (E&O) | $62 | $739 |
| Workers Comp | $22 | $261 |
*These rates are for small businesses with two employees across 79 major industries, focusing on general liability, professional liability/errors and omissions (E&O), workers' comp and business owner's policy. Your actual rates vary based on your business factors and location.
Select your industry and state to get a customized quote.
General liability insurance costs for ecommerce businesses change by location. Maine offers the lowest rates at $64 monthly, $9 below the $73 national average. New York costs $85 monthly.
| Alabama | $72 | $860 |
| Alaska | $65 | $779 |
| Arizona | $70 | $837 |
| Arkansas | $71 | $846 |
| California | $82 | $983 |
| Colorado | $73 | $875 |
| Connecticut | $80 | $958 |
| Delaware | $78 | $942 |
| Florida | $80 | $955 |
| Georgia | $75 | $896 |
| Hawaii | $80 | $957 |
| Idaho | $70 | $836 |
| Illinois | $81 | $968 |
| Indiana | $72 | $861 |
| Iowa | $70 | $840 |
| Kansas | $71 | $857 |
| Kentucky | $68 | $821 |
| Louisiana | $84 | $1,002 |
| Maine | $64 | $764 |
| Maryland | $70 | $842 |
| Massachusetts | $77 | $926 |
| Michigan | $70 | $836 |
| Minnesota | $69 | $827 |
| Mississippi | $74 | $887 |
| Missouri | $72 | $866 |
| Montana | $73 | $878 |
| Nebraska | $70 | $835 |
| Nevada | $83 | $1,002 |
| New Hampshire | $73 | $877 |
| New Jersey | $83 | $1,000 |
| New Mexico | $74 | $887 |
| New York | $85 | $1,025 |
| North Carolina | $64 | $764 |
| North Dakota | $64 | $767 |
| Ohio | $68 | $819 |
| Oklahoma | $68 | $820 |
| Oregon | $68 | $819 |
| Pennsylvania | $85 | $1,018 |
| Rhode Island | $81 | $969 |
| South Carolina | $76 | $909 |
| South Dakota | $69 | $825 |
| Tennessee | $72 | $861 |
| Texas | $74 | $890 |
| Utah | $70 | $841 |
| Vermont | $71 | $847 |
| Virginia | $67 | $803 |
| Washington | $84 | $1,003 |
| West Virginia | $77 | $926 |
| Wisconsin | $72 | $866 |
| Wyoming | $68 | $816 |
*These general liability rates reflect ecommerce businesses with two employees across states. Your rates depend on location, claims history and business specifics.
Workers' compensation insurance costs differ by state for ecommerce businesses. North Carolina businesses pay around $19 monthly. New York businesses pay $25 monthly. State regulations and claim histories drive these price differences.
| Alabama | $21 |
| Alaska | $20 |
| Arizona | $21 |
| Arkansas | $21 |
| California | $24 |
| Colorado | $22 |
| Connecticut | $23 |
| Delaware | $23 |
| Florida | $23 |
| Georgia | $22 |
| Hawaii | $23 |
| Idaho | $21 |
| Illinois | $24 |
| Indiana | $21 |
| Iowa | $21 |
| Kansas | $21 |
| Kentucky | $20 |
| Louisiana | $25 |
| Maine | $19 |
| Maryland | $21 |
| Massachusetts | $23 |
| Michigan | $21 |
| Minnesota | $20 |
| Mississippi | $22 |
| Missouri | $22 |
| Montana | $22 |
| Nebraska | $20 |
| Nevada | $25 |
| New Hampshire | $22 |
| New Jersey | $25 |
| New Mexico | $22 |
| New York | $25 |
| North Carolina | $19 |
| Oklahoma | $20 |
| Oregon | $20 |
| Pennsylvania | $25 |
| Rhode Island | $24 |
| South Carolina | $22 |
| South Dakota | $20 |
| Tennessee | $21 |
| Texas | $22 |
| Utah | $21 |
| Vermont | $21 |
| Virginia | $20 |
| West Virginia | $23 |
| Wisconsin | $21 |
*These workers' comp rates reflect ecommerce businesses with two employees across states. Workers' comp requirements and costs differ by state due to varying regulations.
Professional liability costs vary by state. Nationwide, this coverage averages $62 monthly. North Carolina offers the most affordable rates at $52 monthly. New York has the highest premiums at $73.
| Alabama | $61 |
| Alaska | $56 |
| Arizona | $58 |
| Arkansas | $59 |
| California | $70 |
| Colorado | $61 |
| Connecticut | $66 |
| Delaware | $66 |
| Florida | $66 |
| Georgia | $63 |
| Hawaii | $65 |
| Idaho | $57 |
| Illinois | $68 |
| Indiana | $59 |
| Iowa | $58 |
| Kansas | $59 |
| Kentucky | $58 |
| Louisiana | $71 |
| Maine | $54 |
| Maryland | $59 |
| Massachusetts | $64 |
| Michigan | $57 |
| Minnesota | $58 |
| Mississippi | $61 |
| Missouri | $61 |
| Montana | $61 |
| Nebraska | $60 |
| Nevada | $69 |
| New Hampshire | $61 |
| New Jersey | $70 |
| New Mexico | $63 |
| New York | $73 |
| North Carolina | $52 |
| North Dakota | $54 |
| Ohio | $56 |
| Oklahoma | $57 |
| Oregon | $58 |
| Pennsylvania | $70 |
| Rhode Island | $68 |
| South Carolina | $64 |
| South Dakota | $57 |
| Tennessee | $62 |
| Texas | $62 |
| Utah | $59 |
| Vermont | $60 |
| Virginia | $57 |
| Washington | $69 |
| West Virginia | $65 |
| Wisconsin | $61 |
| Wyoming | $56 |
*These professional liability rates are for ecommerce businesses with two employees across different states. Your actual rates depend on your services and location.
Business owner's policy (BOP) costs differ across states for ecommerce businesses. BOP insurance costs $88 monthly in Alaska and $121 in Pennsylvania for the same coverage level.
The $33 monthly difference adds up to nearly $400 annually. Alaska offers affordable rates for online retailers. Pennsylvania ranks among the highest-cost states for ecommerce BOP coverage.
| Alabama | $102 |
| Alaska | $88 |
| Arizona | $100 |
| Arkansas | $100 |
| California | $116 |
| Colorado | $102 |
| Connecticut | $115 |
| Delaware | $111 |
| Florida | $112 |
| Georgia | $105 |
| Hawaii | $110 |
| Idaho | $99 |
| Illinois | $115 |
| Indiana | $103 |
| Iowa | $98 |
| Kansas | $102 |
| Kentucky | $95 |
| Louisiana | $116 |
| Maine | $89 |
| Maryland | $102 |
| Massachusetts | $109 |
| Michigan | $98 |
| Minnesota | $97 |
| Mississippi | $108 |
| Missouri | $101 |
| Montana | $103 |
| Nebraska | $97 |
| Nevada | $118 |
| New Hampshire | $104 |
| New Jersey | $117 |
| New Mexico | $106 |
| New York | $120 |
| North Carolina | $93 |
| North Dakota | $90 |
| Ohio | $96 |
| Oklahoma | $95 |
| Oregon | $97 |
| Pennsylvania | $121 |
| Rhode Island | $115 |
| South Carolina | $110 |
| South Dakota | $98 |
| Tennessee | $103 |
| Texas | $106 |
| Utah | $99 |
| Vermont | $100 |
| Virginia | $95 |
| Washington | $117 |
| West Virginia | $112 |
| Wisconsin | $102 |
| Wyoming | $96 |
*These BOP rates reflect ecommerce businesses with two employees across states. Your rates depend on business size, location and coverage needs.
Ecommerce business insurance costs range from $43 to $84 monthly by provider. Insurers price differently based on their market focus, coverage priorities and target business segments.
| Chubb | $74 | $891 |
| Coverdash | $67 | $805 |
| Hiscox | $84 | $1,006 |
| NEXT Insurance | $52 | $624 |
| Nationwide | $73 | $873 |
| Progressive Commercial | $65 | $777 |
| Simply Business | $82 | $978 |
| The Hartford | $53 | $632 |
| Thimble | $43 | $511 |
| biBERK | $71 | $852 |
Several factors affect your e-commerce business insurance costs when insurers price your policy:
Your business location affects insurance through state regulations and where you store inventory. Warehouses in high-crime areas or disaster-prone regions face elevated property insurance costs. International shipping operations encounter different liability exposures than domestic-only sellers, with each market's consumer protection laws influencing risk.
Past product liability claims, data breaches, or customer disputes shape your insurance profile. Claims involving defective products, shipping injuries, or payment security failures remain visible to insurers for years. Online retailers with clean records demonstrating quality control processes and secure transaction protocols qualify for preferred rates.
Product categories you offer directly determine liability exposure levels. Selling apparel or home décor carries baseline risk, while electronics, supplements, or children's products face heightened scrutiny. Food items, cosmetics, or products making health claims require specialized coverage due to contamination risks and regulatory compliance obligations.
Workforce size drives workers' compensation and employment liability costs. Dropshippers operating solo with no physical inventory maintain minimal overhead, while businesses employing warehouse staff, customer service teams, and fulfillment workers see premiums scale with payroll. Warehouse employees face injury risks from lifting, packing, and operating material handling equipment.
Sales volume indicates operational scale and corresponding insurance needs. Side hustles generating $50,000 annually require basic coverage, while established stores producing $2 million through thousands of monthly orders need comprehensive protection. Higher revenue means more customer touchpoints, increased shipping volume, and multiplied opportunities for product defects or delivery issues.
Higher coverage limits provide better financial protection but cost more monthly. Choosing between different coverage amounts directly affects your premium, with higher limits increasing costs proportionally.
Financial credentials influence carrier selection and premium rates. E-commerce entrepreneurs with excellent credit often receive 17-42% discounts compared to those with challenged credit. Strong financials demonstrate business viability in an industry with high failure rates, making you more attractive to underwriters.
You can reduce ecommerce business insurance costs through strategic choices. Compare options, get affordable business insurance and strengthen your risk profile.
Ecommerce businesses need cyber liability insurance for data breaches and payment fraud, product liability for customer injuries from defective merchandise and general liability for basic operations. Add business property insurance if you store inventory in a warehouse or home office. Consider errors and omissions coverage if you dropship products. Cyber insurance covers costly data breaches; even small incidents cost $50,000 or more in notification, credit monitoring and legal expenses.
Insurance costs for online retailers differ by product category. Electronics and supplements usually cost more than clothing or home decor. Get quotes from at least three providers. Ensure each covers sales through your website, Amazon, Shopify and social media platforms.
Combining cyber liability, product liability and business property insurance saves 15% to 25% versus purchasing separately. Many insurers offer ecommerce packages for online sellers that include coverage for digital assets, inventory and customer data. Bundling protects you when incidents span multiple coverage areas, such as a data breach that causes business interruption.
Higher deductibles lower your monthly premiums because you pay more out-of-pocket before insurance coverage begins. This works best when you can afford higher upfront costs for potential claims.
Monthly payment plans add 4% to 10% in processing fees that cut into your ecommerce margins. Paying annually eliminates these charges and often qualifies you for a 5% to 9% discount from insurers.
Review coverage when you expand product lines, enter international markets or substantially increase order volume. Your inventory limits should match peak stock levels during holiday seasons, not just average monthly inventory. If you've moved from dropshipping to holding inventory, added Amazon FBA or started accepting cryptocurrency payments, update your policy immediately to avoid coverage gaps.
Ecommerce business insurance costs between $19 and $121 per month, though your actual premium depends on location, business size and claims history. You can save by comparing quotes from several insurers, bundling your coverage, choosing higher deductibles and paying annually instead of monthly.
Ecommerce business owners commonly ask about insurance costs. We answered the most frequent questions below:
Workers' compensation costs $22 monthly but covers employee injuries only. Most ecommerce businesses require general liability coverage ($73 monthly) for protection against customer lawsuits and property damage.
You'll pay more in these states. General liability in California runs $82 monthly (vs. $73 national average), and BOP costs $116 monthly (vs. $104 average). New York is similar at $85 and $120, respectively.
Bundling delivers greater savings compared to purchasing individual policies. Most insurance companies provide discounts when you combine general liability, commercial property and commercial auto coverage under a single carrier.
Multiple risk factors increase premiums: storing valuable inventory, processing sensitive customer data, cyber threats, international shipping, product liability claims, warehouse operations and high transaction volumes.
Higher deductibles reduce monthly premiums but increase out-of-pocket costs during claims. Consider your business's cash flow and expected claim frequency when deciding.
Workers' compensation costs for ecommerce businesses vary by state, ranging from $19 monthly in North Carolina to $25 in New York.
Yes, BOP insurance is worth it for ecommerce companies. BOP costs $104 monthly and bundles general liability, commercial property and business interruption coverage. This bundled approach saves money compared to purchasing individual policies and offers convenient coverage management.
Shop annually when your policy renews. Compare quotes from multiple insurers to find savings, especially after business changes such as adding employees or expanding services.
We collected ecommerce business insurance quotes from companies across different states. For consistent comparisons, every quote used the same business setup:
We used a typical small ecommerce business profile requiring comprehensive coverage. We chose companies offering broad national coverage and online quote capabilities, prioritizing insurers that serve the ecommerce industry.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
