Best E-commerce Business Insurance in 2025

Best E-commerce Insurance Companies for Online Businesses

Starting an online store comes with exciting opportunities, but protecting it with the right insurance is just as important as generating sales and building customer trust. E-commerce businesses face unique risks, including product liability claims, shipping damage, cyberattacks, and data breaches. Without sufficient coverage, a single unexpected event can cause costly delays and threaten the survival of your business.

Finding the right insurance policy can be overwhelming due to the many options available. The best e-commerce insurance provides financial protection and peace of mind, allowing business owners to focus on growth instead of potential risks. Below are ten top e-commerce insurance companies in 2025, what they offer, and who they are best suited for.

Highlights

• Customizable coverage for small to medium businesses
• Bundled policies for growing businesses
• Quick online quotes and digital-first convenience
• Short-term insurance for seasonal sellers
• Cyber liability and data breach protection
• Comprehensive bundled Business Owner’s Policies (BOPs)

Top E-commerce Insurance Providers

Hiscox

Best for: Small to medium e-commerce businesses needing customizable coverage

Coverage Options:

1. General Liability—protects against third-party injuries or property damage
2. Professional Liability—covers claims of negligence or errors
3. Product Liability – shields against defective product claims

Highlights: Focus on small and mid-sized e-commerce businesses, competitive premiums, customizable by product line and business model

Progressive Commercial

Best for: Growing e-commerce businesses seeking bundled policies

Coverage Options:

1. Business Owner’s Policy (BOP)—general liability + property insurance
2. Commercial property insurance for inventory, equipment, and warehouses

Highlights: Flexible packages, coverage against theft and damage, customizable add-ons

Next Insurance

Best for: Entrepreneurs seeking digital convenience and quick quotes

Coverage Options:

1. General liability
2. Product liability
3. Business property insurance

Highlights: Fast digital experience, scalable policies, flexible monthly payments

Thimble

Best for: Startups and seasonal sellers needing short-term coverage

Coverage Options:

1. General liability
2. Professional liability
3. Event-based coverage

Highlights: Quick sign-up, transparent pricing, ideal for pop-up shops and seasonal online stores

Nationwide

Best for: E-commerce businesses concerned about cyber threats

Coverage Options:

1. Cyber liability insurance
2. Data breach protection
3. General liability, product liability, property, and business interruption

Highlights: Strong cyber defense, protection from regulatory fines, broad risk coverage

The Hartford

Best for: Comprehensive bundled coverage

Coverage Options:

1. General liability
2. Property insurance
3. Business interruption

Highlights: Strong small business reputation, customizable limits and add-ons, access to risk management tools

State Farm

Best for: Businesses prioritizing customer service and personal support

Coverage Options:

1. Product liability
2. Cybersecurity insurance
3. Property coverage

Highlights: Knowledgeable local agents, customizable coverage, strong claims support

Liberty Mutual

Best for: E-commerce companies with shipping or delivery operations

Coverage Options:

1. Product liability
2. Commercial auto insurance
3. General liability

Highlights: Ideal for fleet or delivery operations, comprehensive risk protection, global recognition

CNA

Best for: Risk management and strong claims support

Coverage Options:

1. Inventory protection
2. Data breach coverage
3. Shipping liability insurance

Highlights: Proactive loss prevention, dedicated claims support, designed for online retail operations

Allianz

Best for: International e-commerce businesses with cross-border sales

Coverage Options:

1. Trade credit insurance
2. Cargo/shipping insurance (air, sea, or land)
3. Global claims support

Highlights: Expertise in international markets, customizable global policies, comprehensive cargo protection

Ecommerce Insurance Providers Summary

Frequently Asked Questions

Why do e-commerce businesses need insurance?
E-commerce companies face risks like data breaches, product liability claims, damaged inventory, and shipping accidents. Insurance helps protect against financial losses and ensures business continuity.

What is a Business Owner’s Policy (BOP)?
A BOP combines general liability, property insurance, and sometimes business interruption coverage into a single package. It provides cost-effective protection for small and mid-sized businesses.

Which provider is best for small e-commerce startups?
Hiscox, Next Insurance, and Thimble are ideal because they offer flexible, affordable coverage that can grow with your business needs.

Do e-commerce businesses need cyber liability insurance?
Yes. Cyber liability coverage protects against hacking, ransomware, and data breaches, safeguarding both business operations and customer data.

What insurance should international e-commerce sellers consider?
Allianz provides trade credit and cargo insurance, protecting international transactions and shipments from loss or damage.

How does coverage differ for seasonal or pop-up online stores?
Providers like Thimble offer short-term, on-demand policies that can be purchased by the day, week, or month, providing flexible insurance tailored to irregular business schedules.

What factors should be considered when choosing an e-commerce insurance provider?
Business size, growth plans, product type, cyber risk exposure, shipping needs, and whether operations are local or international all impact which provider and policy type are most suitable.

Final Thoughts on Ecommerce Insurance in 2025

In 2025, e-commerce businesses face growing risks, from cyberattacks and product liability claims to logistics challenges and international trade exposure. Choosing the right insurance provider ensures protection against immediate threats and builds a foundation for long-term growth.

Small and medium online stores may benefit most from Hiscox and Next Insurance, while Nationwide and CNA offer advanced cyber protections and risk management. For logistics or global operations, Liberty Mutual and Allianz provide specialized coverage. Selecting the right policy allows e-commerce business owners to protect their assets, maintain customer trust, and focus confidently on expanding in a competitive digital economy.

Written by Mei Ling Updated December 7, 2025 by Albert Fang