Does Your eCommerce Business Need Insurance: Find Out Here!

Does Your eCommerce Business Need Insurance: Find Out Here!

If you own an online business or an eCommerce store, then you might already be familiar with insurance. Even though it can be a tricky topic, a reliable insurance can help you save a lot of money while dealing with any unforeseen incident. Without much ado, let’s get to know more about eCommerce business insurance and discuss why you should get your business insured.

What Is an eCommerce Business Insurance

Ideally, insurance for an eCommerce business works the same as any other business. Chances are that you might end up losing your products or the technical framework can malfunction. Since an online business consists of various verticals, the malfunction in one domain can cause the entire structure to crash.

That’s why eCommerce business owners consider getting their assets or system insured. In this case, whenever there’s an unforeseen situation like the loss of products or a cybercrime, they can easily recover that loss. Based on your business and requirements, the kind of insurance you opt for can largely be customized.

What Is an eCommerce Business Insurance - DSers
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Why Do eCommerce Businesses Need Insurance

Let’s be honest – we all have asked this question at some time. Just like your life, your business also needs a cover. Therefore, an eCommerce insurance can help you overcome some of the following situations easily.

Loss of products

Needless to say, this is the most important factor for businesses to get an insurance. If you are holding your inventory in a warehouse, then it can get lost or damaged due to numerous reasons.

Besides that, even if you are a dropshipping business, your orders can get misplaced or damaged. That’s why you should get an insurance so that you can get back the money you have spent on your products in case of an emergency.

Professional liability

This is something all online marketplaces should definitely consider getting. Let’s say you own a marketplace that hosts numerous third-party sellers. Now, a product delivered from these sellers can be faulty or even end up harming your customers. If they sue you or ask for a refund, then you should have things insured in advance.


Technology can be a vital part of your online business and you must make sure that it should not be tampered with. Unfortunately, in case of a cyberattack or data breach, you can end up losing a lot of intellectual property.

Cybercrime can not only affect the overall online structure of your store, but it can also cause harm to the privacy of your customers. This can lead to all kinds of repercussions that you must resolve by getting an insurance.

Cybersecurity - DSers
‌‌Source: Caspian

Types of eCommerce and Business Insurances

If you are just exploring business insurance types, then the industry can be quite confusing. This is because there are different kinds of schemes and features offered by insurance companies. You might consider getting either of these insurance types, based on your requirements.

General Insurance

This is the most common type of eCommerce business insurance that is opted by mostly every store owner. Consider this as basic insurance that would cover your products, operational hazards, employee-oriented loss, and other instances.

Product Liability

This type of insurance is dedicated to the loss or damage of products that are owned or handled by your business. It doesn’t matter if you are manufacturing your products or if they come from a third-party vendor, the insurance can cover their damage or loss in numerous instances.

Cyber or Tech Insurance

As stated above, any tech-related crime or mishappening can also lead to a loss in your business. That’s why you can consider getting specific insurance schemes catered to losses due to cyber issues.

Property Insurance

This is another common insurance type that is subscribed by businesses with warehouses and properties. If there is an issue with the warehouse, then you can raise a claim for the loss of property.

Crime Insurance

Since you should be prepared for the worst-case scenarios, you can also consider getting insurance against commercial crimes. This will include actions like fraud transactions, embezzlement, or any other crime committed by third-party agencies or your employees.

Cargo Insurance

Cargo and shipment handling can be a vital part of any eCommerce business. Therefore, cargo insurance will make sure that you get paid for goods that are lost in the shipment process.

Worker’s Compensation Insurance

Lastly, if you have hired a lot of employees, then you can consider getting compensation insurance for your workers too. In case of their death or any other unfortunate event, your employees will get paid the insured amount.

Worker’s Compensation Insurance - DSers
‌‌Source: Payoneer

Things to Consider Before Getting a Business Insurance

By now, you can easily understand the benefits of getting an eCommerce business insurance and its major types. Though, before you finalize an insurance company or agent, make sure you consider these things in mind:

Check for exclusives

Marketers usually only highlight the things that are covered in the business insurance schemes. While it is good to know what the insurance plan can cover, you should ask for the things it won’t cover in advance. For instance, a lot of old schemes don’t consider damages done by cybersecurity attacks, which should be included in your plan.

Review the claim process

The process to get the claim of the damage from the insurance company can sometimes be the most tiring process. To avoid any damage, you should be familiar with their claiming process in advance and what kind of roadblocks you can face.

Go for specialized companies

You can find all kinds of companies in the market offering business insurance. To make things easier for you, try to go with companies that provide insurance plans specific for eCommerce businesses. This will automatically make things easier, and you can eliminate unwanted options.

Read the fine print

Too many times, people don’t read the entire agreement of the insurance scheme which can backfire in the long run. Before you finalize everything, make sure you read the entire document to know about the times you can claim a cover, the maximum amount, yearly increment in premium, and other details.

Check for reviews and feedback

Lastly, you should always check the overall reviews of the insurance company. You can simply look for them online on genuine websites and read the feedback of its existing users. This will certainly help you make up your mind and pick an ideal insurance company for your eCommerce business.

Power Your Dropshipping Business with DSers

As you can see, getting a reliable eCommerce business insurance is a must. To avoid these unwanted situations, you can simply take the assistance of DSers. It is the official AliExpress dropshipping tool that comes with tons of power-packed features.

DSers dropshipping

Get Started Now to Grow Your Online Business with the Best AliExpress Dropshipping Tool - DSers!


  • You can find a wide range of products listed from thousands of suppliers in one place on DSers.
  • If you can’t find a suitable supplier, then just use the Supplier Optimizer feature of DSers. It will automatically suggest the most profitable and best-rated supplier for any product.
  • You can easily integrate DSers will leading eCommerce platforms like Shopify, Wix, and WooCommerce.
  • DSers offers tons of features to help you with bulk purchasing, stock management, variant mapping, affiliate marketing management, and so on.
  • You can automatically track the order status of products and keep your customers informed regarding their purchases.


I hope this guide would have helped you know more about eCommerce insurance. To make things easier for you, I have listed the types of commercial insurances you can get and the things you should consider in advance.

Besides that, you can always go with a reliable dropshipping partner to minimize risks in your business. For that, you can simply check DSers, which is the official AliExpress dropshipping tool and is compatible with leading eCommerce platforms.

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