An online store looks low-risk because customers never walk in, but it carries its own exposures: stock sitting in a spare room or rented warehouse, a product that injures a buyer, goods damaged on the way to a customer, and a marketplace or wholesaler that asks for a certificate before it will deal with you. This guide puts numbers on general liability and a business owner’s policy for online retailers, then covers what catches sellers out: home-based stock, product claims, and the proof of cover that marketplaces and suppliers ask for.
How much does e-commerce insurance cost per month?
Most online stores start with general liability: it pays when a customer or visitor is hurt, or their property is damaged, because of your business, and it is what marketplaces and wholesalers usually ask to see. A business owner’s policy bundles it with cover for your stock and equipment, usually for less than buying the two apart. The table shows both.
| Coverage | Typical monthly | Typical annual | What it covers |
|---|---|---|---|
| General liability ($1M per occurrence) | $28–$56/mo | $336–$672/yr | A customer or visitor hurt, or their property damaged, through your operations. Often the cover a marketplace or wholesaler asks to see. |
| Business owner’s policy (BOP) | $57–$114/mo | $684–$1,368/yr | General liability plus commercial property for your stock, packing supplies and equipment, usually cheaper than buying the two apart. |
Estimates from Insureon’s published medians for online retailers at standard $1M/$2M limits, national, business of two to five people. Not quotes. Insureon publishes no separate figure for professional liability or workers’ comp for this trade. Hiscox writes coverage in 49 states plus Washington DC (not Alaska).
See these costs for your own business size, revenue and state
Our guide to general liability vs professional liability vs BOP walks through when each applies, and an online store that makes its own products or holds a lot of stock can end up needing more than one.
E-commerce insurance cost by business size
Insurers rate mainly on revenue and headcount because both stand in for how many customers you serve in a year.
| Business size | General liability monthly | General liability annual |
|---|---|---|
| Just me | $28–$42/mo | $336–$504/yr |
| 2–5 people | $28–$56/mo | $336–$672/yr |
| 6 or more people | $42–$56/mo | $504–$672/yr |
Estimates from Insureon’s published medians, not quotes. No source publishes prices by headcount, so we show the lower half of the range for a one-person business under $100k in revenue, the whole range for two to five people, and the upper half for six or more. Larger businesses often pay more than this, especially for workers’ comp.
E-commerce insurance cost by state
Where the business is based matters nearly as much as its size. Litigation-heavy states price liability higher; quieter states price it lower. The ranges below start from Insureon’s published medians for online retailers and adjust them for each state’s published general liability median.
| State | General liability monthly | General liability annual |
|---|---|---|
| Florida | $34–$68/mo | $408–$816/yr |
| California | $26–$52/mo | $312–$624/yr |
| New York | $27–$55/mo | $324–$660/yr |
| Texas | $27–$54/mo | $324–$648/yr |
| Illinois | $25–$50/mo | $300–$600/yr |
| Colorado | $34–$67/mo | $408–$804/yr |
| Washington | $28–$56/mo | $336–$672/yr |
| Pennsylvania | $33–$66/mo | $396–$792/yr |
| Ohio | $26–$52/mo | $312–$624/yr |
| Georgia | $29–$58/mo | $348–$696/yr |
| North Carolina | $26–$52/mo | $312–$624/yr |
| New Jersey | $29–$58/mo | $348–$696/yr |
| Arizona | $28–$56/mo | $336–$672/yr |
| Massachusetts | $27–$55/mo | $324–$660/yr |
| Michigan | $29–$58/mo | $348–$696/yr |
| Virginia | $26–$52/mo | $312–$624/yr |
Estimates for online stores of two to five people, from Insureon’s published medians adjusted by each state’s published figure. Not quotes.
All fifty states, for every trade and all three policies, are in our guide to average business insurance cost by state.
E-commerce insurance cost by limit
Limits are the second lever after location. The first figure is the most the policy pays for any one incident, the second the most it pays across a policy year. $1M/$2M is the standard because it is what leases and vendor contracts ask for.
| Limits (per occurrence / aggregate) | General liability monthly | General liability annual | |
|---|---|---|---|
| $500K / $1M | No published figure | No published figure | |
| $1M / $2M (standard) | 8–$56/mo | $336–$672/yr | |
| $2M / $4M | About the same as $1M/$2M | About the same as $1M/$2M | |
| $1M plus a $1M umbrella | No published figure | No published figure |
Insureon publishes its medians at the standard $1M per claim / $2M total limit, which most leases and client contracts ask for. Its customers who choose $2M/$4M pay a median of $46 a month nationally against $45 at $1M/$2M, so doubling the limit adds little. No source we use publishes prices for other limits, so ask the insurer to price the options before you choose.
No source publishes a price for a $500K policy, and a marketplace or supplier that asks for $1 million will turn it away. Our guide to the cost of $1 million liability insurance goes further into what each limit buys.
Stock, home-based sellers and the BOP
Many online stores run from a spare room, garage or storage unit. A home or renter’s policy often excludes business stock and equipment, or caps it at a low figure, so a flood or fire can leave an online seller with a loss nobody pays. A business owner’s policy adds commercial property cover for inventory, packing supplies and equipment, which is why a BOP costs more than general liability alone: Insureon’s median is $95 a month against $42. Ask your insurer in plain words whether stock held at home, in a storage unit or at a third-party warehouse is covered, and for how much.
When something you sold hurts someone
If a product you sold injures a buyer, the claim can reach you as the seller even when someone else made it, and that includes goods you ship on a dropshipping basis. Claims of this kind are usually handled under the products part of general liability, so ask the insurer how products you make, import or put your own label on are rated, because those usually cost more to cover than resold goods. Some categories, such as supplements, cosmetics, children’s products and anything electrical, can be priced or declined differently, so say exactly what you sell.
Marketplace and supplier requirements
Sellers on large marketplaces, and stores that buy from wholesalers or brands, are often asked for a certificate of insurance: a one-page summary from your insurer showing carrier, limits and dates. The usual request is $1 million per occurrence of general liability, which is why $1M/$2M limits are assumed throughout this guide, and some ask to be named as an additional insured. Marketplaces set their own thresholds and wording, so read the current seller terms before you buy, and give the insurer the exact legal name the marketplace or supplier will use.
What general liability does and does not cover
General liability pays when a customer, visitor or supplier is injured, or their property is damaged, because of your operations. It does not cover your own stock and equipment, which need property cover (a business owner’s policy adds it), and it does not pay for employee injuries, which is workers’ comp. Nor does it usually cover a data breach or a hacked store, which is a separate cyber policy that this guide does not price. If you hire staff, our workers’ compensation guide covers that side.
How to get an accurate quote at a fair price
- Say exactly what you sell. The category and who makes it drive the price more than anything else.
- Say where the stock lives. Home, storage unit and third-party warehouse can be treated differently.
- Consider a BOP. It bundles liability with stock cover and is usually cheaper than buying the two apart.
- Check what your marketplace or supplier asks for before you buy, so the limits and wording on the certificate match.
- Report the right revenue. Premiums can be audited, so overstating costs you now and understating costs you later.
- Compare two or three carriers. The same coverage can cost more at one insurer than another.
Where these numbers come from
The figures at the top of this page and in the main cost table come from the same data as our cost estimator, so the two always agree. The starting point is the median premium that Insureon, an online insurance agency, publishes for its small business customers (see its online retailers cost page). We adjust it for the state using Insureon’s state medians, and show the band that Insureon’s own price distribution says most businesses fall in. Every figure is an estimate, not a quote. The full method and source list is on the estimator page.
Hiscox and online stores
Hiscox quotes small retail and online businesses online, and its form confirms whether your type of business is eligible. It is rated A (Excellent) by AM Best and sells in 49 states and DC (not Alaska). Its advertised starting prices are entry prices for the lowest-risk trades, so compare them with the medians rather than treat them as a likely quote: where a quote lands depends on what you sell, revenue, limits and claims history. A broker or independent agent can price the same cover at several insurers, which suits a business that wants more than one price.
Frequently asked questions
How much does e-commerce insurance cost per month?
An online store of two to five people pays about $28-$56 a month for general liability nationally, or $336-$672 a year, on Insureon's published figures for online retailers. A business owner's policy runs about $57-$114 a month. A one-person store pays nearer $28-$42 for general liability.
Do I need insurance to sell online?
There is no general law requiring it, but marketplaces, wholesalers and landlords often ask for a certificate of general liability, and a claim from a product you sold can reach you as the seller. Stock held at home is often not covered by a home policy.
Does my home insurance cover the stock I sell online?
Often not, or only up to a low limit. Home and renter's policies commonly exclude or cap business stock and equipment. A business owner's policy adds property cover for inventory, so ask your insurer how stock at home, in storage or at a warehouse is treated.
Am I liable if I dropship a product that hurts someone?
It can be. A buyer's claim can reach the seller even when another company made and shipped the product. Ask your insurer how products you resell, make or label yourself are rated before you buy.
Does general liability cover a data breach or a hacked online store?
Usually not. A breach is the job of a separate cyber policy, which this guide does not price. General liability is aimed at injury and property damage.
Can I get an online store insurance quote online?
Yes. Hiscox quotes small retail and online businesses online and its form confirms whether your type of business is eligible. It is rated A (Excellent) by AM Best and sells in 49 states and DC (not Alaska).
Get a real price
These figures are estimates. Only an insurer can give you a real price.
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Online broker or marketplace
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Disclaimer: Informational only, not insurance advice or a substitute for a licensed agent. Coverage descriptions are summaries; policy terms govern. Availability and pricing vary by state and business, and prices are illustrative. Hiscox is available in 49 states and DC, not Alaska.