Whether you’re a small startup or you run an established e-commerce shop, finding the right insurance is a critical step in safeguarding your online business. Entrepreneurs face a myriad of challenges, from cyber threats to supply chain disruptions.

With the right insurance coverage, those threats don’t have to be catastrophic to your side hustle. But businesses are as unique as fingerprints — some have zero inventory, while others maintain a physical stock of goods, and some have employees while others don’t. So how do you know what insurance you need? 

To help you find the right fit, we’ve put together a list of the best companies, policy types, and insurance coverage options for your online business. We specifically looked for insurance companies that are easy to do business with and offer policies that are customizable to your business profile.

1. Chubb

Best For: Business owners who need comprehensive coverage 

Chubb is an insurance giant known for its comprehensive coverage options. That means their policies cover a wide range of risks, including property damage, business interruption, and cyber liability, and they have options for small-business owners ($1,000,000 or less in gross revenue) as well as larger commercial companies.

Chubb dates back to the late 1800s, is known for being the world’s largest property and casualty insurance company, and offers policies in dozens of countries worldwide. For online businesses with a global footprint, Chubb’s international reach and expertise can be invaluable. 

Chubb’s online user experience is decent — you can get a business insurance quote and purchase a policy online. You can also obtain insurance documents immediately through their website.

2. Next

Best For: Online business owners who prefer self-serve tools over an agent

If you prefer handling your insurance needs online through a company’s website and their chat feature, Next might be the best fit for you. While other companies advertise the benefits of an agent to guide you, Next makes it easy for customers to self-serve their business insurance needs through a modern user interface.  

Next not only offers the convenience of digital customer service like adding or changing coverage and producing certificates of insurance, but you can also file claims online. When you do have questions, you can opt to work with a representative, but only on weekdays.

While Next is a newer company that can’t boast the long-established trust of Chubb, it caters to businesses that sell on Amazon and can help you meet those requirements.

3. The Hartford

Best For: Online business owners who prefer to work with an agent

The Hartford is another company that has been around for more than a century and is well-rated by the insurance industry for its financial strength. They have many years of experience offering business owners core coverages they need like general liability, property coverage, and business interruption.

The Hartford offers coverage that addresses the distinctive risks inherent to online retail. Their business owners policy (BOP) can be customized with add-ons that protect you against product liability claims, supply chain disruptions, and data breaches.

While you can get quotes online, depending on your business type, you may need to work with an agent to finalize coverage and get ongoing service. 

4. Travelers

Best For: Online business owners concerned about business interruption

For online businesses heavily reliant on digital operations, any disruption can have significant financial implications. Travelers Insurance specializes in providing coverage for business interruption, ensuring that online enterprises can recover from unexpected events like server outages and cyberattacks.

Their policies are crafted to help businesses resume operations swiftly and minimize financial losses. You will need to work with an agent to purchase their policies, but they do offer online services like filing claims and printing certificates of insurance.

5. Thimble

Best For: Business owners who need instant, short-term coverage

Thimble specializes in on-demand insurance, allowing businesses to purchase coverage for specific periods, often as short as a few hours. This flexibility is beneficial for online businesses that may only need coverage for a special event, like selling goods at a craft fair.

Thimble offers general liability insurance, which can cover bodily injury and property damage, and they can tailor coverage based on specific activities, size, and risk factors.

Thimble’s digital platform streamlines the application process. Businesses can often obtain quotes and purchase insurance online without the need for extensive paperwork. This user-friendly approach is particularly attractive for online entrepreneurs.

Thimble aims to provide businesses with quick access to insurance protection, making it suitable for situations where coverage is needed on short notice.

6. State Farm

Best For: Online business owners who want a single company for personal and business insurance needs

State Farm is a well-established insurance company that most people know for auto and home insurance. But their Business Owners Policy covers general liability, business property, and business interruption, providing a well-rounded solution for small to medium-sized businesses, including online ventures.

The convenience of having your personal and business insurance with one company could be a benefit and also make things easier if you have to file a claim. You can also customize the BOP with Cyber Liability Insurance, or purchase Professional Liability.

If your online business involves the use of vehicles for deliveries or other purposes, State Farm offers commercial auto insurance to protect business-owned vehicles. The company’s availability to get quotes or buy business insurance through their website is limited, but they advertise a large network of agents so you can get guidance from a licensed professional. 

How Much Does Online Business Insurance Cost?

The cost of insurance for your online business can vary significantly based on several factors, including the following:

  • Type of Business: The nature of your online business significantly impacts the cost of insurance. For example, an e-commerce store may have different insurance needs than a content creator or bookkeeper.
  • Coverage Types and Limits: The types and amounts of coverage you choose affect the cost. Comprehensive coverage, higher liability limits, and additional endorsements will generally result in higher premiums.
  • Business Size and Revenue: The size of your online business and its annual revenue play a role in determining insurance costs. Larger businesses with higher revenues may have more assets to protect, impacting the premium.
  • Location: Just like with auto and home insurance, the location of your business can impact insurance costs. 
  • Claims History: The claims history of your business, if applicable, can influence insurance costs. A history of frequent or costly claims may result in higher premiums.
  • Cybersecurity Measures: If your online business deals with sensitive customer data, the strength of your cybersecurity measures can affect insurance costs. Robust security practices may help lower the risk of cyber incidents.
  • Deductibles: The deductible is the amount you pay out of pocket before the insurance coverage kicks in. Choosing a higher deductible can lower your premium but increase your financial responsibility in the event of a claim.
  • Professional Experience: Your experience and expertise as an online business owner in your industry may be a factor. Established and experienced businesses may be viewed as having lower risk profiles.
  • Insurance Provider: Different insurance providers have different pricing models and underwriting criteria. It’s a good business practice to get quotes from multiple insurers to compare costs and coverage options.
found logo

Want a free business checking account? It takes 5 minutes to sign up.

Found’s online banking solution is ideal for small business owners who want bookkeeping features and tax tools for no additional charge.

Why Does My Online Business Need Insurance?

Buying insurance for your business is a way of transferring certain risks from yourself to the insurance company, so you can minimize disruption when a lightning strike fries all your equipment or a customer claims your product caused them harm. 

Those events and hundreds of others, like cybersecurity threats and data breaches, can damage your credibility or cause you to have to shut down your business for a while, which costs money. Business insurance helps address these risks by paying for financial losses.

Insurance Coverage Options For Online Businesses 

Most businesses need the foundational coverage provided by the following types:

  • General Liability Insurance: Coverage for third-party bodily injury and property damage and protection against advertising and personal injury claims
  • Property Insurance: Coverage for physical assets, including equipment and inventory, and protection against damage due to fire, theft, or other perils
  • Products and Completed Operations Liability: Coverage for the legal liabilities arising from the products you manufacture, sell, and distribute; or the services you have completed.

Online businesses quite often need the following additional coverages:

  • Cyber Liability Insurance: Protection against data breaches and cyberattacks and coverage for related legal fees and fines
  • Business Interruption Insurance: Coverage for lost income during downtime and reimbursement for extra expenses incurred during interruptions
  • Professional Liability Insurance: Protection against claims of professional negligence 
  • Workers’ Compensation Insurance: If you have employees, you’ll most likely need workers’ comp to cover the cost of employees who become injured or ill on the job. 

Where To Buy Online Business Insurance

You can buy insurance for your online business in three primary ways:

  • Directly from the insurance company through a website
  • Through a broker (a professional who represents several different insurance companies)
  • Through an agent who is a company representative

When deciding which channel you want to buy from, it helps first to identify how you prefer to do business. Do you value the advice of a trusted advisor? Then you may want a company that has licensed agents to guide you. Would you prefer to do as much as possible with your policy online without having to talk to a person? Then stick with companies with the most comprehensive digital platforms and live chat customer service. 

What To Look For in an Insurance Company

To help you decide which company is the right choice for you, focus on these selling points: 

  • Cybersecurity Coverage: Make sure the insurance provider offers robust coverage against cyber threats such as data breaches, ransomware, and other cyberattacks.
  • Customizable Policies: Look for insurance policies that can be tailored to the specific needs and risks of your business. This flexibility is crucial as online businesses can vary significantly in their operations and potential risks versus a brick-and-mortar store. 
  • Financial Strength: Assess the financial stability of the insurance company. A financially strong insurer is better equipped to fulfill its commitments and pay claims, providing you with greater peace of mind.
  • Industry Expertise: Choose an insurance provider with expertise in the online business or e-commerce sector. Understanding the unique challenges and risks online businesses face is essential for crafting effective insurance policies.
  • Claims Process: Evaluate the insurance provider’s claims process. A streamlined and efficient claims process can be crucial in helping your business recover quickly from covered incidents.
  • Customer Reviews: Read reviews from other businesses that have used the company’s insurance services. These can provide insights into the customer experience, claims handling, and overall satisfaction.
  • Global Coverage (if applicable): If your online business operates internationally, consider whether the insurance provider offers coverage that extends beyond domestic borders.
  • Affordability: Compare the cost of coverage with the level of protection provided. It’s important to strike a balance between affordability and comprehensive coverage.

Final Words

By taking time to understand and choose the best insurance coverage, online business owners can build a secure foundation for sustained growth in the online marketplace. Having business insurance comes hand in hand with having an online banking solution. Found is a great all-in-one banking solution for self-employed people, freelancers, and gig economy workers. Having these things figured out can help you enjoy the peace of mind that comes from knowing your business is well-protected from risk.

Insurance is complicated, so do your homework. But also don’t be afraid to ask questions. Insurance professionals can help you evaluate the areas of greatest exposure for your business and find the most appropriate coverage options and policy types. 


Is insurance required for my online business?

It depends. If you work from home and do not sell a product, you may not need coverage at first. As your business grows in revenue, number of clients, and number of services, you may need general liability and protection against cyberattacks, at a minimum. 

If you sell a product, then insurance helps protect your inventory from fire or theft, for example, which would interrupt your ability to make money. Or you could get sued by a customer who claims your product hurt them, and insurance helps provide coverage for a legal defense should you need one. 

Some marketplaces like Amazon or local crafts festivals may require liability insurance for you to do business.

What can I do to make my insurance cheaper for my online business?

Consider higher deductibles to keep premiums down. For some coverages, your established business practices for proactively protecting your data or property may help you get discounts. Security systems, smoke alarms, and bundling insurance with other products may also lower the price.