Ecommerce Business Insurance Cost (2025 Rates)

Updated: November 20, 2025

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Key Takeaways

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.

How Much Is Insurance For a Ecommerce Business?

We found average business insurance costs for ecommerce companies for commonly needed coverage are as follows:

Complete Ecommerce Insurance Bundle: $188 per month or $2,250 yearly for combined BOP, workers' compensation and professional liability coverage.
General Liability Coverage: $73 monthly or $882 annually
Workers' Compensation Insurance: $22 per month or $261 per year
Professional Liability Coverage: $62 per month or $739 annually
Business Owner's Policy (BOP) Insurance: $104 monthly or $1,250 annually


BOP	$104	$1,250
General Liability	$73	$882
Professional Liability (E&O)	$62	$739
Workers Comp	$22	$261

Note: We based these rates on small businesses with two employees across 79 major industries, focusing on four coverage types: general liability, professional liability/errors and omissions (E&O), workers' comp and business owner's policy. Your actual rates will vary based on your specific business factors and location.

Get Matched To Cheap Cleaning Business Insurers

Select your industry and state to get a customized quote.

Industry

State

Ecommerce Business Insurance Cost of General Liability Coverage by State

Your ecommerce business insurance cost for general liability insurance varies significantly by location. Maine leads with the lowest rates at $64 monthly, saving you $9 compared to the $73 national average. New York sits higher at $85 monthly, giving you real numbers for budgeting decisions.


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

Note: We based these general liability rates on ecommerce businesses with two employees across different states. Your rates will vary based on your location, claims history and the types of properties you clean.

Ecommerce Business Insurance Cost of Workers’ Compensation Coverage by State

Your ecommerce business will face different cost of workers' compensation insurance depending on your state. For example, North Carolina businesses pay around $19 monthly while New York businesses pay $25 monthly. State regulations and claim histories drive these pricing differences across the country.


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

Note: We based these workers' comp rates on ecommerce businesses with two employees across different states. Your workers' comp requirements and costs will vary by state since each has different regulations.

Ecommerce Business Insurance Cost of Professional Liability Coverage by State

Your professional liability cost varies significantly by state. Nationwide, this coverage averages $62 monthly. North Carolina offers the most affordable rates at $52 monthly, while New York commands the highest premiums at $73 monthly.


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

Note: We based these professional liability rates on ecommerce businesses with two employees across different states. Your actual rates will depend on your services offered and location.

Ecommerce Business Insurance Cost of BOP Coverage by State

Ecommerce business insurance costs vary significantly across states, with business owner's policy (BOP) coverage showing the largest price differences. BOP insurance cost ranges from $88 in Alaska to $121 in Pennsylvania for the same coverage level.

The $33 monthly difference between the cheapest and most expensive states can add up to nearly $400 annually. Alaska consistently offers some of the most affordable rates for online retailers, while 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

Note: We based these BOP rates on ecommerce businesses with two employees across different states. Your actual rates will vary based on your business size, location, and coverage needs.

Ecommerce Business Insurance Cost By Provider

Ecommerce business insurance costs vary widely by provider, ranging from $43 to $84 monthly. These price differences stem from each insurer's market focus and coverage priorities, which shift based on profitability and expansion opportunities within specific 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

Ecommerce Business Insurance Cost Factors

Several factors affect your e-commerce business insurance costs when insurers price your policy:

Geographic location

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.

Safety record and claims history

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.

Types of products sold

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.

Employee count and payroll

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.

Business size and revenue

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.

Coverage limits

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.

Credit score and financial stability

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.

How to Get Cheap Ecommerce Business Insurance

Keeping your e-commerce business insurance costs reasonable takes strategy and smart choices. With help from our step-by-step guide, you can compare options, secure cheap business insurance for your online business, and strengthen your risk profile for long-term success.

1
Choose the right coverage types for your business
E-commerce businesses need cyber liability to protect against data breaches and payment fraud, product liability for customer injuries from defective merchandise, and general liability for basic business operations. Add business property insurance if you maintain inventory in a warehouse or home office, and consider errors and omissions coverage if you dropship products. Cyber insurance is particularly critical since even small breaches can cost $50,000+ in notification, credit monitoring, and legal expenses.
2
Shop multiple insurance companies
Insurance costs for online retailers vary widely based on your product category, with electronics and supplements typically costing more than clothing or home decor. Get quotes from at least three providers, ensuring each covers sales through multiple channels including your own website, Amazon, Shopify, and social media platforms.
3
Bundle your coverage types
Combining cyber liability, product liability, and business property insurance can save 15-25% versus purchasing separately. Many insurers now offer e-commerce packages specifically designed for online sellers that include coverage for digital assets, inventory, and customer data. Bundling also provides seamless protection when incidents span multiple coverage areas, like a data breach that leads to business interruption.
4
Increase your deductibles
Higher deductibles lower your monthly premiums since you pay more out-of-pocket before insurance coverage begins. This strategy works best when you can afford the higher upfront costs for potential claims.
5
Pay annually instead of monthly
Monthly payment plans add 4-10% in processing fees that eat into your already thin e-commerce margins. Paying annually eliminates these charges and often qualifies you for a 5-9% discount from insurers.
6
Review and adjust your coverage annually
Review coverage whenever you expand product lines, enter international markets, or significantly 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, these operational changes require immediate policy updates to avoid coverage gaps.

Insurance for Ecommerce Business Cost: Bottom Line

E-commerce business insurance costs between $19 and $121 per month, though your actual premium depends on factors like 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 Insurance Cost: FAQ

Ecommerce business owners commonly ask about insurance costs. We answered the most frequent questions below:

What is the cheapest type of Ecommerce business insurance?

Workers' compensation costs just $22 monthly but only covers employee injuries. Most Ecommerce businesses require general liability coverage ($73 monthly) for protection against customer lawsuits and property damage.

How much does Ecommerce business insurance cost in expensive states like California and New York?

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.

How much can I save by bundling my Ecommerce business insurance policies?

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.

What factors make my Ecommerce business insurance more expensive?

Higher premiums stem from multiple risk factors: storing valuable inventory, processing sensitive customer data, facing cyber threats, shipping internationally, handling product liability claims, operating warehouses and managing high transaction volumes.

Should I choose a $500 or $2,500 deductible for my Ecommerce business insurance?

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.

How much does workers' compensation cost for Ecommerce businesses by state?

Workers' compensation costs for ecommerce businesses vary by state, spanning from $19 monthly in North Carolina to $25 monthly in New York.

Is business owner's policy (BOP) worth the extra cost for Ecommerce companies?

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 separately while offering unmatched convenience.

How often should I shop around for Ecommerce business insurance quotes?

Shop annually when your policy renews. Comparing quotes from multiple insurers can uncover significant savings, especially after business changes like adding employees or expanding services.

How We Determined Ecommerce Business Insurance Costs

We collected ecommerce business insurance quotes from companies across different states. For consistent comparisons, every quote used the same business setup:

Two employees (three people in total, including the owner)
$150,000 annual payroll
$300,000 annual revenue
Already insured status
$1 million per occurrence and $2 million total per year for all coverage except BOP, which includes the same limits plus $5,000 business property coverage

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. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like 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.

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