eBay Business Insurance
Getting insurance for your eBay business is essential.
This is because owners of eBay businesses need to protect themselves against a variety of different risks, such as those that relate to product liability claims, reimbursement disputes, and intellectual property violations.
For example, a lawsuit could be filed against your business if an item purchased from your eBay store ends up causing physical harm to a costumer (e.g., sharp object, allergic reaction, skin irritant, etc.).
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for an eBay Business
General liability insurance is — generally speaking — one of the most important insurance policies for eBay businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
As the owner of an eBay business, you could be subject to risks that will not be covered entirely by a general liability policy. This means that you may need to acquire additional coverage in order to “fully” safeguard your business assets.
Examples of such coverage include:
- Product liability: This will protect your business if a customer claims that a product sold from your online store caused them bodily or property damage.
- Intellectual property: This policy will safeguard your assets against liability that arises as a result of accidental IP disputes (e.g., selling an item that’s been trademarked by another business, etc.).
- Commercial property: This will allow you to repair and/or replace your commercial equipment if need be (e.g., inventory, work computer, rented office, etc.).
- Business income: This type of coverage safeguards your business against lost income that is a direct result of you being unable to operate due to commercial property damage.
In order to get started, you will need to find the right business insurer.
Generally speaking, you will be able to choose between a traditional business insurance provider and an online insurer.
We recommend going with the second option for several reasons, including the fact that online insurers tend to be more affordable. This is because they have lower overhead (e.g., automatic quotes, no offices, etc.).
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Cost of General Liability Insurance
On average, eBay businesses in America spend between $350 - $900 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for an ebay business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Discover the best coverage at the lowest rate in our cheapest business insurance review.
Common Situations That General Liability Insurance May Cover for an eBay Business
Example 1: While you take a potential investor on a tour of your business, she trips on some uneven flooring, breaks a wrist in the resulting fall, and decides to sue your business. General liability insurance would pay for your legal defense and any required settlement.
Example 2: The owner of a business similar to yours files a lawsuit against you, claiming you libeled his company in your advertising. General liability insurance would cover your legal defense costs.
Example 3: A customer parks outside your place of business to pick up a large order. As you transport the order to his vehicle, you lose control of the hand truck and it slams into the customer’s car. General liability insurance would cover the customer’s vehicle repair costs.
Other Types of Coverage eBay Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Product Liability Insurance
While you strive to ensure eBay customer service standards are met with every purchase, there’s always a chance someone might claim your product caused them harm. In the event of a lawsuit, product liability insurance would cover your legal fees and any required settlement.
Data Breach Insurance
Also known as cybercrime insurance, this coverage protects you from liabilities related to compromised customer data. If a cybercriminal hacks your system and your customers sue you over the damage caused by the stolen data, data breach insurance would cover your legal fees and any required settlement.
Home-Based Business Insurance
If you run your business from your home, you may need this insurance to safeguard your equipment and space in your home devoted to your business. A typical homeowners insurance policy may not cover business-related items or customer injuries in your home if you don’t disclose you use your home for business purposes.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your ebay business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
eBay Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Yes, you do. Getting business insurance can protect your commercial assets from potential product liability and IP law disputes.
It can also help you replace and/or repair your business assets (if need be). Such assets can include office furniture, computers, and software.
Note: If you employ workers, you will likely be legally required to purchase workers’ compensation coverage.
Not necessarily. Certain exceptions may be written directly into your ebay business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.