Start Getting Business Insurance for Ecommerce
Get Ecommerce insurance anywhere in the world. Lowest net cost is contractually guaranteed for similar protection that is tailored to your goals - otherwise, we pay the difference.
Our team is independent of any insurance broker or lobbyist, working for you and not the broker or insurer, and has skin in the game during claims. We audit and trigger insurance policy language for best cost, compliance, operational protection, financing, and valuations.
What is E-commerce Risk?
We define E-commerce risk as the operational risk of e-commerce companies that includes the risks of external events, processes, people, and systems impacting the operations of E-commerce companies. E-commerce risk management entails measuring e-commerce risks, protecting against them through controls and e-commerce insurance, and monetizing the outcomes of operational resilience with lenders and investors.
What is E-commerce Insurance?
E-commerce Insurance is commercial insurance that is reworded or tailored to protect against operational E-commerce risks. E-commerce insurance products include but are not limited to:
- E-commerce D&O Insurance
- E-commerce Cyber Insurance
- E-commerce Professional Liability Insurance
- Rep and warranty insurance (RWI) for E-commerce M&A
Whether E-commerce Insurance is used to hedge against supply chain disruptions, management errors, or other operational risks, the language of e-commerce insurance policies must be clinically reviewed, reworded, and triggered to achieve the best results on cost, compliance, protection. As such, it is important for e-commerce companies to understand the insurance claiming process of E-commerce Insurance.
Tailoring Business Insurance for Ecommerce at the Lowest Cost
Running an e‑commerce business means you’re exposed to both traditional commercial risks and modern digital‑era exposures — so relying solely on a standard policy may leave significant gaps. Business insurance for ecommerce is specifically tailored to cover the unique threats facing online sellers: inventory damage or theft, stock in transit, product‑liability claims, cyber‑attacks, business interruption due to website downtime, and more.
Key coverages you should consider:
- General & Product Liability: Even if you don’t manufacture items, selling products online exposes you to risks of bodily injury or property damage caused by a product you sold.
- Commercial Property / Inventory & Equipment: If you stock inventory, own equipment (cameras/computers for your site), or operate from a warehouse or home office, this coverage protects your tangible assets.
- Cyber & Data Breach Insurance: With customer data, payment processing, and online systems, ecommerce businesses are prime targets for hacking, ransomware and data breach events. You can now calculate data breach insurance cost instantly.
- Business Interruption / Transit: If your stock is lost in transit or website downtime stops sales, it can hurt revenue sharply — insurance can help replace lost income or increased costs of operations.
Why this matters: Because an ecommerce business often connects physical operations (inventory, shipping) with digital platforms (online storefronts, customer data), the composite risk is broader. For example, a damaged shipment leads to lost revenue; a cyber‑attack results in regulatory fines and reputation damage. Without proper insurance, you could be vulnerable to cascading losses.
What to do next:
- Work with a consultant who is independent fo any broker or insurer who understands ecommerce models (dropshipping, marketplace seller, fulfilment centre, subscription box). Contact DeshCap.
- Inventory your operations: note whether you hold stock, use third‑party logistics (3PL), ship internationally, process customer data.
- Review your pricing & limits: higher‑value products, international shipping and greater data exposure typically mean higher premiums.
- Ensure your policy wording matches your business model: If you use a 3PL or dropship, ensure stock‑in‑transit or off‑site storage is covered. Many standard policies assume you “own and store” inventory.
Example of E-commerce Risk Management
Below is an example of e-commerce risk being measured for our client EMERGE Commerce that went public on Monday December 14th, 2020 on the TSXV. The company's e-commerce risk measures were outlined and marketed to investors. We anticipated an initial outperformance of the stock following the IPO (subject to no changes in interest rate levels) given its financials being more resilient to operational risks thereby providing better protection, consistency, and returns to investors. This assumes a consistent level of execution on risk management and other strategic endeavours. We wish the team at EMERGE all the best.
