Do I Need Insurance for My Shopify Store?

(Depends on how far you plan on taking this lil’ store of yours)
Written by Sara East
Written by Sara East

Insurance doesn’t have to be boring. That’s why we hired Sara East to be our BA insurance writer. Maggie specializes in making mundane subjects hella-entertaining.

Reviewed by Paige Murray
Reviewed by Paige Murray

Paige Murray is Principal Broker and co-owner of Aspen Insurance Services, Inc. She has more than 30 years experience in Medical Malpractice Insurance, Professional Liability Insurance, Property & Casualty Insurance, Life & Disability Insurance, and Employee Benefits.

Potter entrepreneur using Shopify on laptop in workshop

Shopify has quickly become one of the most popular online retail platforms. Just ask makeup mogul/Kardashian team member Kylie Jenner, who’s sold $630 million since opening her Shopify store in 2015. But she’s not even close to being the site’s only massive success story. According to recent Shopify stats, the platform recorded their one-billionth order in the second quarter of 2018. That’s a lot of selling!

One of the most appealing things about Shopify is that it’s insanely easy to get started on. Shervin Mohseni, President of The Source of All, was able to set up his Shopify store in a matter of minutes. “Shopify offers a two-week free trial, which is more than enough time to get used to their platform before committing to launching an online store,” he said.

So if you’ve been thinking about getting your own piece of the Shopify pie, we certainly don’t blame you. But before you jump all in, it’s important that you go into it fully prepared, with all your questions answered. Like other businesses, do you need business insurance for a Shopify store? Well, that’s what we’re here to talk about.

Does Shopify Require Business Insurance?

In short, no. Shopify will not require you to have business insurance. The nice thing about this is you can easily start selling on Shopify right away. However, it’s still a business. And protecting yourself from liability issues is important, so we do recommend that you have coverage. After all, safe is always better than sorry. And in this case, if something goes wrong, the wrong could cross deeply into your personal life, and that’s never worth it.

Now let's move beyond the business insurance question. We want to help give you a good, firm foundation to build your Shopify store on. So let’s talk tactics. 

How to Get Started on Shopify

The fact that you don’t need insurance for Shopify means you can get signed up and start selling immediately. It’s as easy as one, two, three.

  • One: Sign up for a Shopify account.
  • Two: Leverage your two-week free trial to get used to the platform.
  • Three: Link your debit/credit card to your account and start selling.

According to Shervin, Shopify even offers their own payment gateway system called Shopify Payments. This system is connected to your debit/credit card, and all funds are deposited directly into your account daily.


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How to See Success on Shopify

Now that you’ve got the basics down, how do you rake in the bucks? Well, let’s learn straight from the horse’s mouth. Shopify recommends the following tips for being a top seller on the platform:

  • Have clear messaging: Spend time researching what type of company you want to be and how you want to present your company to the world. Once you decide on your message, stick to it. 
  • Have a great design: Work with a professional to create a nice logo and website for your company. User experience, and appearing legit, is everything.
  • Build your brand: It’s not enough to say you’re an eco-friendly water bottle company, you gotta live it. Show your audience how you’re making a footprint in the industry and not leaving too many footprints in the environment. Shopify put it best when they said, “You’re selling a lifestyle, not just a product.”
  • Have positive interactions with clients: The better experience you provide to your customers, the better reputation your brand will get. 

When Should I Consider Getting Insurance for My Shopify Store?

If your Shopify store is just a side gig or a hobby, you can probably last a while without needing insurance. But as soon as you go from a side hustle to a career, you’re making  yourself, your assets and your business vulnerable. 

There are a few situations and reasons that you should get insurance even if you don’t need it for Shopify.

  • Some contracts may require it: If you’re signing contracts with other companies, they may require you to have proper insurance.
  • Your assets could be at risk: If you’re not incorporated and you find yourself being sued, the person can go after your entire estate in addition to your business.
  • It’s good business practice: People who are doing business with you are expecting that you'll be a smart and trustworthy business owner.


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What Type of Insurance Should I Get?

There are endless types of insurance available, but only a few make sense for a small online business.

  • General liability coverageThis protects you against liability from third parties that may sue you. 
  • Hired and non-owned auto coverage: This can be added to general liability and may be available through auto insurance. It's great to have if you’ll be using your car to run business errands. Even though you’re selling online, you may be using your car to run to the bank, pick up merchandise or supplies, etc.
  • Professional liabilityRelevant for online businesses that are selling services, like consultants. This insurance covers you for loss of client information or mistakes you may make when rendering or withholding service.
  • Cyber liability: Covers you for the loss of data such as credit card information, dates of birth, social security information, etc.
  • Product-specific liability: Covers injuries that someone could sustain from a specific product, like kitchen supplies. 

If you have more than one worker, even involved in your online business, you will also need to purchase workers' compensation insurance.

It’s Time to Sell

Getting your business started on Shopify is a smart move, and the tips in this article can totally help you get there. If you plan on your business growing, we definitely recommend investing in business insurance. 

Insurance should cost no more than $250 to $500, which is a small price to pay for peace of mind. 

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