The basics
If you sell physical products online — Shopify, Amazon FBA, Etsy, your own DTC store — a Business Owners Policy (BOP) is usually the right starting bundle. A BOP combines general liability, commercial property (for inventory), and business interruption into one policy at 10-20% less than buying separately.
Why it matters in 2026
For online sellers, the key BOP add-ons are product liability (covers bodily injury from a defective product), data breach / cyber endorsement, inland marine (for inventory in transit or off-premises 3PL warehouses), and equipment breakdown if you fulfill yourself.
How it actually works
Amazon now requires sellers crossing $10,000/month in sales to carry $1M per occurrence / $1M aggregate commercial general liability with Amazon listed as additional insured. Most BOPs handle this for $400-$900/year — Next Insurance, Hiscox, and Thimble file the COI to Amazon directly.
Common pitfalls
What a BOP does NOT cover: professional advice (you need E&O), employee injuries (workers' comp), and auto used for business (commercial auto or hired/non-owned auto). For a one-person Shopify store with no employees, the BOP plus a cyber endorsement is usually enough.
Practical recommendations
Underwriting in 2026 asks for annual revenue, top product categories (ingestibles, electronics, and children's products get higher premiums), countries you ship to, and any prior product liability claims. Have your last 12 months of sales by category ready before you quote.
Key takeaways
- Understand the structure before you shop.
- Compare quotes from at least three carriers.
- Document everything and revisit coverage annually.
- Pair with related coverage for full protection.
Related reading on InsureLab
Sources & further reading
Frequently asked questions
Do I need a BOP if I sell only on Amazon?+
Once you cross $10,000/month in sales, Amazon requires $1M general liability with them as additional insured. A BOP is usually the cheapest way to meet that requirement.
Does a BOP cover product liability?+
Most BOPs include product liability for retailers, but check the policy form — supplements may be required for ingestibles, electronics with batteries, and children's products.
What about shipping and inventory in transit?+
Add inland marine coverage for inventory in transit, at 3PL warehouses, or off-premises. Standard BOP property coverage typically excludes off-premises stock.
How much does a BOP cost for an online seller?+
Typically $40-$80/month for a small Shopify store, depending on revenue, product categories, and limits. Higher-risk categories (ingestibles, children's) cost more.
Found this helpful?
Share it with a friend who's about to renew their policy — and browse our other guides while you're here.