It depends on the product, just like any insurance pricing. Your liability will be greater if you sell knives than if your eCommerce store sold fluffy cotton wool balls. There will also be the following calculations:
- How recent is your company? The risk is lesser the longer you’ve been around. Your level of experience will determine the price.
- Where is your company based? The dangers will be larger, as well as the price of the insurance, if your storage facilities are vulnerable to earthquakes or flooding.
- Your quote will also be dependent on your projected annual income because Amazon mostly requires product E-commerce Liability Insurance. The normal annual cost is between $500 and $1,000.
Additional insurances that can be appropriate for your company include:
Cyber Liability:
The “WannaCry Ransomware Cyber Attack” in 2017 grabbed news as one of the most significant ransomware attacks ever. In over 150 countries, 200,000 PCs were compromised. The pandemic cost a number of sectors $8 billion.
Businesses are shielded from ransomware and data breaches by cyber liability. This kind of insurance will assist with the costs associated with dealing with customers, the investigation of the issue, and third-party lawsuits in the event that your eCommerce website is compromised and hackers steal secured credit card information.
Transit insurance: (aka inland marine insurance)
Consider that you sell birdfeeders and keep them in a warehouse for storage. This sort of insurance will cover any damage to the birdfeeders in the event that they are harmed during transit due to an accident, theft, vandalism, or an act of God like bad weather.
The birdfeeders will be replaced under this type of regulation whether they are damaged or taken.
Professional Insurance:
Professional E-commerce Liability Insurance will pay for the cost of your defense, including the cost of hiring a lawyer, if a disappointed client sues you for a mistake your company did, like negligence that reduced his business.
This includes typos, oversights, unfulfilled services, and late submissions.a