Blockchain
Cannabis
Cryptocurrency
Influencers
Micromobility
On-Demand & Shared Economy
On-Demand Delivery
Robotics
SPACs
Web3
AI
E-Commerce
Education Technology
Esports
Fintech
MSPs
SaaS
Startups
Technology
Life Science Risk Management
Biotech
Dietary Supplement & Nutraceutical
FamTech & BabyTech
HealthTech
Pharmaceutical
Virtual Care, TeleHealth, & Telemedicine
Financial Services
Professional Services
Media & Advertising
info@foundershield.com 
114 E 25th St, New York, NY 10010 
646.854.1058 
Shopify Industry Overview
As a Shopify seller, you know that unexpected events can happen at any time. That’s why it’s important to have the right insurance coverage in place to protect your business from financial losses.
The world of e-commerce is witnessing an unprecedented surge in growth, and Shopify has been a highlight of this revolution. With over 5 million active Shopify stores globally, 70% of which are in the US, it’s clear that Shopify has revolutionized the world of online stores. However, great potential also comes with great risks.
As your store flourishes, the need for comprehensive insurance coverage increases. Founder Shield’s Shopify Insurance is strategically crafted to help protect Shopify entrepreneurs against financial and legal risks, ensuring they confidently navigate this dynamic landscape.
Why is Insurance for Shopify Important?
If you sell on Shopify and you’re thinking of skipping Shopify insurance, you might be putting yourself in a risky situation. Here’s why.
Protect Your Customers and Your Reputation
Owning and operating a Shopify store involves countless moving parts, from inventory management to customer interactions. But don’t worry; our shipping insurance coverage ensures that your customers’ orders are protected from the moment you ship them until they reach their destination. This helps protect your customers’ satisfaction and bolsters your business’s reputation for credibility.
Mitigate Financial Risks with Comprehensive Coverage
Every Shopify store faces a different level of risk exposure. Our personalized insurance policies will cover you if you’re concerned about shipping mishaps, data breaches, or potential bodily injury claims. From general liability insurance to professional liability insurance, we tailor our plans to suit your specific needs, protecting your business against unforeseen costs that could adversely affect your business.
Enhance Your Risk Management Strategy
Founder Shield isn’t your usual insurance company – we’re your partners in risk management. We get that the Shopify business is a beloved asset, and we’re here to pave the way for its success. Our insurance program doesn’t consist of a safety net only; it’s an integral component of your risk management strategy. By identifying potential vulnerabilities, we develop coverage plans that fit your needs and protect your investment.
Foster Customer Loyalty and Confidence
In the competitive e-commerce world, customer loyalty is paramount. Adding shipping insurance to your services makes you commit to your customers’ satisfaction. In case of shipping delays or damaged goods, our swift claims process can help promptly address your customers’ concerns, fostering their confidence and reliability in your brand.
Recommended policies for Shopify Sellers
Shopify Insurance Coverage & Policies
These coverages form the foundation of any risk management program for Shopify Selling:
General liability
General liability insurance covers claims of bodily injury, property damage, and other basic liabilities that a business might face during its operations. For Shopify businesses, this is crucial because they interact with customers, suppliers, and potentially have physical locations where accidents or unintended harm might occur, necessitating coverage against potential lawsuits or repair costs.
Cyber liability
Cyber liability insurance offers protection against the financial implications of data breaches and other online security threats. Given that Shopify businesses operate primarily online and deal with customer data, including payment details, they’re at a heightened risk for cyberattacks. This coverage is vital to safeguard against potential financial losses and reputation damage resulting from digital vulnerabilities.
Workers' compensation
Workers’ compensation provides wage replacement and medical benefits to employees who sustain injuries in the course of their employment. If a Shopify business employs individuals, be it in a warehouse, office, or customer service role, it’s essential to have this insurance. It ensures the well-being of employees and protects the business from potential legal repercussions.
Employment practices liability (EPL)
EPL insurance protects businesses from claims related to employment practices, such as wrongful termination, discrimination, or harassment. As Shopify businesses grow and expand their workforce, they may inadvertently face such claims from current or former employees. EPL provides a shield against potential legal fees and settlements.
Shopify Specific Insurance Coverage
Product liability insurance offers protection against claims of injury or damage caused by the products a business sells. For Shopify sellers, where the primary operation involves selling products, this coverage is essential. It ensures that if a product malfunction or defect causes harm, the business is insulated from hefty legal claims.
Product liability Insurance
Product liability insurance covers the business against claims of injuries or damages caused by products they’ve sold or produced. Amazon sellers distribute products that could potentially malfunction or cause harm. This insurance protects against claims arising from such incidents.
Property
Property insurance protects a business against damage to or loss of its physical assets, such as equipment, inventory, or office space, due to events like fires, theft, or natural disasters. Even if a Shopify business primarily operates online, they might still have physical assets, like a warehouse or office equipment, that need protection against unforeseen damages.
Transit and Transportation
Transit and transportation insurance covers goods while they are being transported, safeguarding against potential damage or loss during this process. Given that a Shopify business frequently ships products to customers or receive inventory from suppliers, this coverage ensures peace of mind and financial protection against potential in-transit mishaps.
Shopify Insurance Costs
Every Shopify business has unique requirements and different financial considerations. Whether you’re a small business owner just starting or a seasoned e-commerce veteran, our flexible policies accommodate your budget. At the same time, it helps protect your business against complex situations.
Also, suppose you’re looking for a risk assessment or searching for efficient risk management strategies specific to your business’s unique challenges. In that case, our experts can guide you through the process, minimizing costs and efforts.
Why Choose Founder Shield?
Founder Shield is a leading insurance provider that specializes in offering comprehensive plan for e-commerce companies, offering numerous benefits and advantages over traditional insurance providers. Here’s a breakdown of some of the key features and benefits that you’ll enjoy with us:
Benefits of Choosing Founder Shield
- Industry Expertise: Founder Shield is focused on protecting rapidly evolving e-commerce startups. We ensure that our products are tailored to meet the unique needs of Shopify businesses.
- Customized Solutions: Founder Shield offers bespoke insurance policies that are designed specifically for each client’s needs, ensuring a comprehensive plan that addresses the unique risks associated with Shopify operations.
- Fast Quotes: With Founder Shield’s streamlined quoting process, you can receive a personalized quote for your Shopify insurance quickly, allowing you to make informed decisions fast.
- Ease of Use: Founder Shield’s user-friendly digital platform makes it easy to manage your insurance policies, submit claims, and access important documents whenever you need them.
- Dedicated Support: Founder Shield provides exceptional customer service, with dedicated account managers who are always available to assist you with any questions or concerns you may have about your insurance coverage.
- Scalable Coverage: As your Shopify business grows, Founder Shield’s insurance policies can grow with you, ensuring you always have the right level of insurance plan for your changing needs.
Founder Shield is a preferred choice for Shopify businesses because of our specialization in the industry. We offer flexible and customized insurance policies, a speedy quoting process, and exceptional customer service with dedicated account managers.
Shopify Insurance Frequently Asked Questions (FAQ)
The cost of insurance for Shopify businesses will depend on several things, including the company’s size and development stage. Other factors include:
- Exposures: risks being insured
- Company practices: views on safety, compliance, and risk management
- Program structure: the amount of deductible and willingness for a company to assume more risk
- Claims history: the type and amount of past claims against the company
While Shopify does not universally mandate insurance for all sellers, it’s advisable for businesses to have coverage to safeguard against potential risks. Insurance requirements may also be dictated by local or state regulations, especially if you have a physical presence or employees.
The amount of Shopify business insurance you need will vary based on several factors: the type of products you sell, the scale of your operations, where you’re located, and the specific risks associated with your business. Consulting with an insurance professional can help determine the right coverage levels tailored to your unique business model.
The amount of Shopify business insurance you need will vary based on several factors: the type of products you sell, the scale of your operations, where you’re located, and the specific risks associated with your business. Consulting with an insurance professional can help determine the right coverage levels tailored to your unique business model.
Business liability insurance protects your company against claims of bodily injury, property damage, and other general liabilities that may arise during operations. For online businesses, this includes potential issues arising from product sales or any in-person interactions that may occur in physical locations or pop-up events.
Absolutely! Insurance policies for Shopify businesses can often be tailored to address specific risks and needs. Whether it’s adjusting coverage levels, adding specialized protections for certain product categories, or integrating riders for unique scenarios, insurers offer flexibility to match the intricacies of the e-commerce landscape.
Types of Shopify Businesses that Need Insurance
- Single-Product Shopify store
- Niche Shopify store
- General Shopify store
- Hybrid Shopify store
Shopify Claims & Examples
Navigating a commercial insurance claim is often challenging, often fraught with confusion and multiple unknown factors. The following four-part series outlines the ins and outs of commercial insurance claims:
