eBay is a powerhouse marketplace for buyers hunting for everything from brand-new gadgets to rare collectibles and one-of-a-kind finds.
While eBay does not publish the exact number of Canadian sellers on its platform, according to Statista, there are approximately 181,000 eBay sellers in Canada. Additionally, Statista notes retail e-commerce in Canada generated over US$65.5 billion in revenues in 2024. That figure is projected to increase to US$104 billion by 2029.
For independent sellers – whether it’s a full-time business or a weekend side hustle – this growth brings opportunity, but also risk. Even if you’re shipping items from your kitchen table, you’re still exposed to potential liability.
And while eBay doesn’t require sellers to carry business insurance, smart sellers understand the importance of protecting themselves from costly, unpleasant surprises.
A customized eBay sellers insurance policy – generally called e-commerce insurance – is vital for online sellers, including those selling goods on eBay Canada.
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What Liability Risks Do eBay Sellers in Canada Face?
Every small business or independent seller faces a wide range of risks that could devastate their finances, including:
Product Liability
Among the most significant risks eBay sellers face is product liability. Any item or product you manufacture, distribute, or sell that causes third-party bodily harm or property damage – even unintentionally – could result in an expensive lawsuit against you.
Property Damage and Loss
Damage to your business property or home-based business and equipment (including electronics) and inventory caused by fire, water, natural disasters, theft, or vandalism.
Business Interruptions
Many unexpected incidents – such as a fire or cyber-attack – could force you to halt your operations until repairs are completed, causing an eBay seller to lose income.
Cyber Liability
As an online seller, a data breach or a cyber-attack could compromise your eBay account or digital payment system and expose confidential customer information.
Lost or Damaged Shipments
Shipments of purchased goods could be lost, damaged, or stolen while en route to customers.
False Advertising and Copyright Infringement Allegations
eBay sellers may face allegations of false advertising due to inaccurate descriptions of goods or copyright infringement claims from rights holders when selling products with logos or content you don’t have permission to use.
What Does eBay Sellers Insurance Include?
eBay sellers insurance, or e-commerce insurance, is a customized policy that includes a variety of coverages to safeguard eBay sellers. A typical policy might include the following:
- Cyber Liability Insurance: Cyber liability insurance helps eBay sellers recover from a data breach or cyber-attack. It includes coverage for legal advice fees, notifications to and credit monitoring for affected customers, and restoration of your computing systems and software damaged by an attack.
- Product Liability Insurance: Product liability insurance covers third-party bodily injury and property damage claims caused by an item or product you sell to your customers that may be defective. This type of coverage is often included in a general liability insurance policy.
- General Liability Insurance: General liability insurance covers third-party bodily injury and property damage claims caused by your business’s daily operations because of negligence or an accident that occurs on your business’s premises, like a trip and fall injury to a customer or delivery person.
- Commercial Property Insurance: Commercial property insurance protects your business property, equipment, and inventory from damages and losses caused by fire, water, natural disasters, theft, or vandalism. Even a home-based business should have commercial property insurance since most homeowner insurance policies do not cover claims arising from business activities.
- Business Interruption Insurance: Business interruption insurance is designed to cover an eBay seller’s lost income and operational overhead (like utility bills) following an insurable loss, such as a fire. You must have commercial property insurance to purchase this type of coverage.
- Inland Marine Insurance: Inland marine insurance is designed to cover products transported by land (truck or train) or while in storage at a third-party location if damaged, lost, or stolen.
What Does eBay Sellers Liability Insurance Cost?
What eBay sellers or e-commerce insurance costs depends on several factors that an insurance company considers to determine the annual premium for a policy, including:
- Your location
- The types of products you sell and where they’re sourced from
- Sales volume and value of inventory
- The insurance coverages you select and their coverage limits
- Your business insurance claim history
General liability coverage may start around $500 annually for a low-risk, independent eBay seller.
How to Get Low-Cost eBay Seller Insurance Quickly
Zensurance is Canada’s leading business insurance brokerage. We help protect over 350,000 Canadian small businesses and independent professionals with customized coverage, including low-cost e-commerce insurance for eBay sellers.
Fill out our online application for a free quote in less than five minutes.
Our experienced brokers can help you find the right coverage at an affordable cost. We partner with over 50 Canadian insurers and will tailor a policy to meet your specific needs.
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