E-Commerce Insurance
E-Commerce Insurance
E-Commerce Insurance protects online retailers, dropshippers, digital wholesalers, and marketplace sellers from the unique risks of operating a digital business. It covers liability for product-related harm, cyber threats, business interruption, inventory loss, and legal claims related to customer disputes, privacy breaches, or failed deliveries.
This type of insurance is essential for businesses that operate through their own websites, platforms like Shopify or WooCommerce, or marketplaces such as Amazon, Etsy, or eBay. It can be tailored to support Australian-only sales or international exports.
At Angelic Insurance, we help online business owners secure general liability, product liability, cyber cover, and business interruption protection ensuring that their operations remain protected from click to delivery.
How It Works
We make insuring your online business simple, whether you sell digital products, physical goods, or run a full-scale fulfilment operation.
Tell us about your online store
We assess your platform, average monthly sales, fulfilment process, and whether you hold, ship, or outsource product distribution.
Identify your key exposures
We look at risks like product liability, shipping issues, data security, and platform account suspension that may impact your business.
Compare insurer options
We provide general advice and compare insurers that specialise in retail, tech, cyber, and global liability solutions.
Build your insurance package
You may need a combination of public liability, product liability, cyber insurance, stock cover, and errors and omissions protection.
Activate your policy
Once approved, we issue Certificates of Currency so you can comply with marketplace or payment processor requirements.
Adjust cover as your store scales
We review your cover at renewal or if your product line, fulfilment method, or export market changes.
Why You Need It?
E-commerce businesses face distinct risks not covered by traditional retail insurance. One claim or platform issue could impact your entire operation.
Protects against product claims
If a customer is injured or their property is damaged by your product, insurance covers legal costs and compensation.
Defends against cyberattacks
If your site or customer data is hacked, cyber insurance helps pay for recovery, legal defence, and customer notification.
Covers inventory loss
If stock is damaged, stolen, or destroyed during storage or transit, your policy helps pay for replacements.
Ensures compliance with platforms
Marketplaces like Amazon and eBay may require product liability insurance to continue listing certain products.
Supports income continuity
Business interruption cover helps protect your revenue if you can’t trade online due to a covered loss.
How Angelic Insurance Can Help?
We work with growing online businesses to structure coverage that’s affordable, scalable, and suited to the evolving world of digital retail.
Compare policies across industries
We help you access cover designed for retail, logistics, software, digital services, and e-commerce platforms.
Tailor cover to your fulfilment model
Whether you use dropshipping, third-party logistics (3PL), or ship direct, we structure the cover accordingly.
Understand compliance requirements
We help you meet platform demands, including Certificates of Currency for Amazon or Shopify Seller Protection.
Include cyber and privacy cover
Protect customer data, transaction security, and system continuity with optional cyber extensions.
Claims and account recovery support
If your operation is interrupted due to damage, loss, or cyber issues, we help you navigate the claims process efficiently.
Challenges Businesses Face Without E-Commerce Insurance
Without the right protection, a single incident from a customer injury claim to a supplier failure can disrupt or shut down your online business.
Product lawsuits or injury claims
Even basic items can cause injury or malfunction, leading to expensive legal claims and business interruption.
Platform takedowns due to non-compliance
Many marketplaces suspend or remove sellers who can’t provide proof of insurance or recover from claims quickly.
Loss of income after cyber breach
Online stores can be taken offline by ransomware or payment system breaches, halting sales and damaging trust.
Unrecoverable stock or fulfilment delays
Lost or damaged stock during transit or storage without coverage may result in cancelled orders and negative reviews.
Reputational damage after data loss
Failing to respond to a data breach or customer privacy claim can hurt your brand and lead to fines or lost users.
Case Studies: How E-Commerce Insurance Helped Real Businesses
Case 1 – Faulty electronics cause injury
A dropshipper selling gadgets was sued after a charging cable caught fire. Product liability insurance paid $44,000 in defence and compensation costs.
Case 2 – Cyberattack locks Shopify store
An online apparel store was hit with a ransomware attack. Cyber insurance funded $18,000 in IT recovery and public relations support.
Case 3 – Transit loss of imported stock
A Sydney-based beauty brand lost $26,000 worth of skincare items in freight. Marine transit cover reimbursed the value, avoiding customer delays.
Case 4 – Amazon seller account reinstated
A supplement business was suspended after a product safety claim. Proof of insurance and legal support led to reinstatement within two weeks.
Frequently Asked Questions
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