Does Amazon require sellers to have insurance?

Yes. Amazon requires Professional sellers generating $10,000+ in monthly sales to carry commercial general liability insurance with at least $1,000,000 per occurrence. Amazon must be listed as an additional insured. ERGO NEXT covers Amazon sellers and provides the certificate format Amazon requires.

Do dropshippers need product liability insurance?

Yes. As the seller of record, you are legally liable for products you sell — even if you never physically handle them. A dropshipped product that causes injury or property damage is your legal problem, not just the manufacturer's. Product liability coverage protects you.

Does my business insurance cover PayPal or Stripe disputes?

No. Payment processor disputes (chargebacks) are not covered by insurance — they are merchant agreement issues handled between you and your payment processor. Business insurance covers legal liability, property damage, data breaches, and professional errors — not payment disputes.

How much does cyber insurance cost for an online business?

Cyber liability insurance for most small eCommerce businesses runs $20–$60 per month depending on revenue, the type of data you collect, and your security posture. It covers data breach notification, legal defense, forensic investigation, and business interruption from cyber events.

Does Amazon require sellers to have insurance?

Yes. Amazon requires Professional sellers generating $10,000+ in monthly sales to carry commercial general liability insurance with at least $1,000,000 per occurrence. Amazon must be listed as an additional insured. ERGO NEXT covers Amazon sellers and provides the certificate format Amazon requires.

Do dropshippers need product liability insurance?

Yes. As the seller of record, you are legally liable for products you sell — even if you never physically handle them. A dropshipped product that causes injury or property damage is your legal problem, not just the manufacturer's. Product liability coverage protects you.

Does my business insurance cover PayPal or Stripe disputes?

No. Payment processor disputes (chargebacks) are not covered by insurance — they are merchant agreement issues handled between you and your payment processor. Business insurance covers legal liability, property damage, data breaches, and professional errors — not payment disputes.

How much does cyber insurance cost for an online business?

Cyber liability insurance for most small eCommerce businesses runs $20–$60 per month depending on revenue, the type of data you collect, and your security posture. It covers data breach notification, legal defense, forensic investigation, and business interruption from cyber events.

Work Style

Business Insurance for Online & eCommerce Businesses

Selling online eliminates geography but not liability. Product liability, cyber breach, and payment disputes follow your business wherever it sells.

$35–$110/ montheCommerce businesses selling physical products typically pay $50–$110/month (GL + product liability). Service-based online businesses run $35–$80/month. Add cyber coverage for $20–$50/month more.

Get My Free Quote →

Backed by Munich Re. 750,000+ businesses insured. Get your certificate of insurance instantly.

🏆A+ AM Best Rated (Munich Re)🏢750,000+ Businesses Insured⚡Get a Quote in 10 Minutes📄Instant Certificate of Insurance🕐24/7 Online Policy Management

Coverage Types for Online & eCommerce Businesses

These are the key insurance policies most relevant to your business type — ranked by importance.

🛡️

General Liability

Required

Covers third-party bodily injury and property damage. Even without a physical storefront, product liability and advertising injury claims (e.g., IP infringement in ads) are significant online risks.

📦

Product Liability

Required

If you sell physical products online — including through Amazon, Shopify, or Etsy — and a product causes injury or property damage, you face liability. Many platforms now require sellers to carry product liability insurance.

💻

Cyber Liability

Highly Recommended

Online businesses collect payment data, email addresses, and order history. A breach or ransomware attack triggers notification costs, legal fees, and revenue loss. Cyber coverage is essential for any business transacting online.

📋

Professional Liability (E&O)

Recommended

Digital services — web design, consulting, marketing, SaaS — carry E&O exposure when a client claims your work caused financial harm. Required for service-based online businesses.

⏸️

Business Interruption

Recommended

Covers lost revenue if your systems go down, a key supplier fails, or a cyber event halts operations. Online businesses are uniquely vulnerable to digital disruptions.

Get Your Instant Quote

100% online. No broker call required. Get covered and download your Certificate of Insurance in under 15 minutes.

See My Quote →

Backed by Munich Re. 750,000+ businesses insured. Get your certificate of insurance instantly.

🏆A+ AM Best Rated (Munich Re)🏢750,000+ Businesses Insured⚡Get a Quote in 10 Minutes📄Instant Certificate of Insurance🕐24/7 Online Policy Management

What You Need to Know

→Amazon, Walmart Marketplace, and many payment processors now require sellers to carry product liability insurance with minimum $1M limits.
→Selling online does not eliminate geographic jurisdiction — you can be sued in the customer's state under that state's consumer protection laws.
→Cyber liability is not included in standard GL policies — it must be added separately or purchased as a standalone policy.
→Dropshippers are still liable for the products they sell, even if they never touch the inventory.
→eCommerce businesses using influencer marketing or running paid ads face advertising injury exposure (IP claims, defamation).

What Does It Cost?

$35–$110per month

eCommerce businesses selling physical products typically pay $50–$110/month (GL + product liability). Service-based online businesses run $35–$80/month. Add cyber coverage for $20–$50/month more.

15 min

To get covered online

Broker fees

Instant

Certificate of insurance

Frequently Asked Questions

Yes. Physical presence is irrelevant to liability. If a product you sell injures a customer, if a competitor claims your ad copied their content, or if customer data is stolen from your store, you face real financial exposure — all without a single in-person interaction.

Explore More

→Remote Workers & Remote Businesses →Mobile Businesses →All Business Insurance Guides

Ready to Get Covered?

Join thousands of businesses that get insured online in minutes. No paperwork. No broker required. COI instant download.

Get My Free Quote →

🏆A+ AM Best Rated (Munich Re)🏢750,000+ Businesses Insured⚡Get a Quote in 10 Minutes📄Instant Certificate of Insurance🕐24/7 Online Policy Management