Why do eBay sellers need insurance?
Sellers on eBay aren't required to carry insurance, but they also won't receive any assistance from the marketplace in the event of a lawsuit. Business insurance covers legal costs if you're sued over harm caused by a product. It also helps pay for data breaches, damaged inventory, and theft.
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With Insureon, eBay sellers can save money on insurance by comparing quotes from top-rated providers.
Fill out our easy online application to get free quotes and advice from a licensed agent.
What types of business insurance do eBay sellers need?
These policies protect against the most common risks of selling on eBay.
Business owner's policy
A business owner's policy, or BOP, is a cost-effective way for eBay sellers to buy general liability insurance and commercial property insurance together.
- Product liability lawsuits
- Damaged or stolen inventory
- Business interruption coverage
General liability insurance
This policy covers common third-party lawsuits, such as slip-and-fall accidents. It typically includes product liability insurance for financial protection against harm caused by your products.
- Customer injuries
- Product liability claims
- Copyright infringement
Workers’ compensation insurance
Most states require workers' comp for eBay stores and other online businesses that have employees. It also protects sole proprietors from work-related injury costs that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Legal fees from worker injuries
Cyber insurance
This policy helps eBay sellers recover from data breaches and cyberattacks. It’s sometimes called cyber liability insurance or cybersecurity insurance.
- Customer notification expenses
- Fraud monitoring services
- Cyber extortion demands
Commercial umbrella insurance
Umbrella insurance boosts coverage on an eBay seller's general liability, employer’s liability, or commercial auto insurance policy once the limit is reached on a claim.
- Customer injury lawsuits
- Property damage lawsuits
- Auto accident lawsuits
Commercial auto insurance
Most states require commercial auto insurance for business-owned vehicles. This policy covers accidents involving an eBay seller's delivery van or other vehicle.
- Injuries caused to another person
- Property damage caused by your vehicle
- Vehicle theft and vandalism
How much does eBay seller insurance cost?
An eBay store with several employees will likely pay more for insurance than a seller who works independently.
Factors that affect the cost of insurance include:
What are eBay seller insurance requirements?
Unlike Amazon sellers, eBay sellers are not required to carry insurance. However, that doesn't mean you don't need it.
The eBay user agreement specifies that "eBay has no responsibility or liability for the safety or performance of any product that you list or sell." That means you're solely responsible for any legal bills arising from your products.
You must also comply with eBay's selling policies. These policies show you the kinds of items you can sell, and provide safety guidelines for products like toys, child seats, cosmetics, and laser pointers.
The site does have a seller protection policy, which is more extensive for Top Rated Sellers. However, it focuses on protection from abusive buyers and the removal of negative feedback related to situations beyond your control. It does not include liability protection at any tier.
How do I get insurance for eBay sellers?
It's easy to get eBay seller insurance and e-commerce insurance if you have your business information on hand. Our application will ask for basic facts about your small business, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:
- Complete a free online application.
- Compare insurance quotes and choose policies.
- Pay for your policy and download a certificate.
Insureon's licensed agents work with top-rated U.S. providers to find the right eBay liability insurance for your business, whether you're a sole proprietor or hire employees. Get insured today and find peace of mind knowing your business can survive the unexpected.
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FAQs about eBay insurance for sellers
Review answers to common questions about eBay business insurance.
Is product liability insurance required for eBay sellers?
All eBay sellers should carry product liability insurance, which provides financial protection against customer lawsuits related to your products. Every retailer, manufacturer, and wholesaler should carry this coverage, as anyone in the supply chain could be held liable for harm caused by a product.
Product liability insurance can help cover bodily injuries and property damage caused by defective products. That includes:
- Design defects
- Manufacturer defects
- Marketing defects
In addition to carrying insurance, it's important to manage your risks. Extensive product testing, warning labels, and quality assurance processes can go a long way toward preventing product lawsuits. This can help keep your customers safe, along with avoiding the hassles and costs associated with a lawsuit.
Product liability insurance is often included in your general liability policy, sometimes called public liability insurance. You can also purchase product recall insurance to protect against costly product recalls. If these types of protection aren't already included, you should be able to add them to your policy as riders.
Does eBay seller insurance protect against theft?
Homeowner's insurance does not cover insurance claims related to your business operations, which is why you may need additional coverage. These policies can help you recover financial losses from theft:
- Commercial property insurance: This policy provides compensation for supplies, equipment, and inventory stolen from your business premises (but not other locations). It's also called business hazard insurance. You can bundle it with general liability coverage in a BOP for savings.
- Fidelity bond: Also called employee dishonesty coverage, this type of commercial crime insurance provides financial protection against employees who steal from your business or a customer.
In addition to insurance, it's important to take steps to prevent theft. In some cases, you can even reduce your premium by implementing security measures recommended by your insurer.
What other types of insurance policies should eBay sellers consider?
To fully protect your eBay selling business, you may need additional types of insurance. Consider the following policies for coverage against other risks you might face:
- Business interruption insurance: Also called business income insurance, this add-on to commercial property insurance helps businesses recover from a temporary closure tied to a fire, storm, or other covered property claim.
- Equipment breakdown coverage: This policy protects your eBay store's computers, electrical systems, production machinery, and other equipment from sudden malfunctions. It covers financial losses from short circuits, loss of air pressure or vacuum, or power surges that commercial property insurance typically excludes.
- Electronic data processing (EDP) insurance: This covers electronic data processing equipment, such as computers and POS systems, against data loss during a power surge, fire, natural disaster, or similar incident.
- Inland marine insurance: Be aware that property insurance only covers items at your primary business location. Inland marine insurance covers items at storage units, warehouses, and other off-site locations, along with items in transit.
Some of the above coverages can be added to a BOP, often with a discount. Learn about other ways you can save money on small business insurance.