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Amazon Seller Insurance Policy Information

Amazon Seller Insurance

Amazon Seller Insurance. Every month, more than 197 million shoppers around the globe visit Amazon to make purchases. With those kinds of numbers, it's safe to say that Amazon is the world's largest online retailer.

Whether you're an entrepreneur who has developed an awesome product and you're looking for a platform to sell it on, or you're interested in getting involved in the reselling industry, becoming a seller on Amazon can certainly open the doors to a lucrative opportunity.

While getting set up to sell products on Amazon is pretty easy, trying to figure out how to properly grow your success can be a bit tricky. Though e-commerce giant does offer guidelines in their Amazon Services Business Solutions Agreement, it's long, in-depth, and is filled with jargon that everyday people may not be able to understand.

With that said, however, there's one particular area of this agreement that you really need to take the time to familiarize yourself with and ensure you're complying with: Amazon's insurance requirements for sellers.

Amazon requires all sellers to carry insurance. Why? And what type of Amazon seller insurance do you need?

Below, we'll discuss Amazon insurance requirements for sellers, including why it's important and what type of coverage you need.

Amazon seller insurance helps you meet Amazon's insurance requirements starting as low as $23/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked Amazon seller insurance questions:

How Much Does Amazon Seller Insurance Cost?

The average price for the required $1,000,000/$2,000,000 General Liability policy for Amazon sellers ranges from $23 to $59 per month based on based on location, products offered, what country the products come from, gross sales and experience.

Why Do Amazon Sellers Need Insurance?

Insurance For Amazon Sellers

An Amazon store is a business, and like all businesses, insurance is a necessity. The primary reason why Amazon requires all of their sellers to invest in insurance coverage is so that they can properly protect their businesses. That's because insurance provides sellers with the protections they need in the event that some type of unforeseen circumstance arises.

Picture someone buying a product from you and then being involved in an accident and getting injured as a result of using that product - and that person filed a lawsuit against you; you could be looking at some pretty serious financial repercussions. Amazon doesn't want to pay for your liability, so they require that you purchase an Amazon sellers insurance policy.

By having an Amazon seller insurance policy, both you and your business will be protected against any fees that may arise as a result of any unforeseen circumstances, such as legal fees, property damages, and medical care, as well as any settlements that you may be liable for.

What Are The Insurance Requirements For Amazon Sellers?

According to Amazon, their pro sellers must invest in general liability insurance. In other words, if you are on the retailers Professional Selling Plan, you must invest in general liability coverage. As per Amazon pro seller insurance requirements:

"Sellers with professional selling plans on must provide proof of Commercial General Liability insurance. This insurance, obtained at the seller's expense, shall cover up to $1,000,000 per occurrence and in the aggregate and must include products liability, bodily injury, or personal injury, property damage, and other requirements as stated in the Participation Agreement. The insurance must indicate that ", Inc., and its affiliates and assignees" are added as additional insureds."

The required Additional Insured wording must be as follows: ", Inc., its affiliates and assignees are additional insureds, as their interests may appear"

The document also specifies that your Certificate of Insurance must...

  • Be an original document.
  • Be completed in its entirety and signed.
  • Contain an Additional Insured Endorsement.
  • List all seller subsidiaries or DBAs covered by the certificate provided.
  • Provide at least 30 days' notice of cancellation, modification, or non-renewal.
  • Show complete insurance carrier names as listed in the A.M. Best Property & Casualty Guide.
  • Note: Binders are not acceptable

You must have Commercial General Liability (CGL), Umbrella and/or Excess Liability Insurance coverage with limits of not less than: $1,000,000 per occurrence, $1,000,000 in the aggregate for products and completed operations, and $1,000,000 in the general aggregate. Such insurance must include products liability, products/completed operations, bodily injury, personal injury, broad form property damage, and broad form contractual coverage. You may also satisfy the insurance limits by using any combination of Commercial General Liability and Umbrella and/or Excess Liability insurance.

The Amazon Services Business Solutions Agreement also states:

"If the gross proceeds from Your Transactions exceed the applicable Insurance Threshold during each month over any period of three (3) consecutive months, or otherwise if requested by us, then within thirty (30) days thereafter, you will maintain at your expense throughout the remainder of the Term for each applicable Elected Country commercial general, umbrella or excess liability insurance with the Insurance Limits per occurrence and in aggregate covering liabilities caused by or occurring in conjunction with the operation of your business, including products, products/completed operations and bodily injury, with policy(ies) naming Amazon and its assignees as additional insureds. At our request, you will provide to us certificates of insurance for the coverage to the following address: c/o Amazon, P.O. Box 81226, Seattle, WA 98108-1226, Attention: Risk Management."

Details Of The Pro Amazon Seller Insurance Requirements

$1,000,000 Of General Liability Insurance

This means your own business insurance would cover up to $1,000,000 in third pprty bodily injury or property damage. Typically, this coverage starts around $23/mo. will not purchase the insurance for you; rather, you must purchase it yourself. If you fail to have the right type of insurance policy that provides the coverage that Amazon requires, you will not be allowed to continue selling on the site.

Products Liability, Bodily Injury Or Personal Injury, And Property Damage

The bodily injury, personal injury and property damage are in virtually all commercial general liability coverage.

Products liability on the other hand is not always included. Consult with your insurance agent or broker to be sure.

Additional Insured Endorsement

By adding Amazon as an Additional Insured, they are free from liability (up to your policy limits), while enjoying the benefit of your liability insurance. The Additional Insured endorsements protects Amazon if you are sued for liability.

Original Proof of Insurance Document

Proof of insurance is most commonly presented on an ACORD 25 Form aka Certificate of Insurance. The ACORD certificate of insurance summarizes essential information about your insurance policy, such as coverage types, policy numbers, insurance limits, and effective and expiration dates. It will also show Amazon as the Additional Insured and can show the other important information that Amazon requires.

Proof of Insurance should be sent to the following address: Attn: Risk Management P.O. Box 81226 Seattle, WA 98108-1226, or by email:

You can request the Certificate of Insurance from you broker or insurer after the policy has been purchased. Then you can forward this to Amazon to meet the Amazon seller insurance requirements.

Amazon Business Insurance Requirements

Commercial Insurance And Business Industry Classification

Description for 454110: Electronic Shopping and Mail-Order Houses

454110 Electronic Shopping and Mail-Order Houses: This industry comprises establishments primarily engaged in retailing all types of merchandise using nonstore means, such as catalogs, toll free telephone numbers, or electronic media, such as interactive television or the Internet. Included in this industry are establishments primarily engaged in retailing from catalog showrooms of mail-order houses.

  • Catalog (i.e., order-taking) offices of mail-order houses
  • Collectors' items, mail-order houses
  • Computer software, mail-order houses
  • Home shopping television orders
  • Internet auction sites, retail
  • Mail-order book clubs (not publishing)
  • Mail-order houses
  • Web retailers

Amazon Seller Insurance - The Bottom Line

If you plan on becoming a professional seller on Amazon, it's imperative that you invest in the right type of insurance coverage and that you meet the above-mentioned requirements for your insurance. For assistance with coverage, speak to a reputable insurance agent.

Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).

Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law
Small Business Commercial Insurance

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

Additional Resources For Information Technology & Internet Insurance

Learn about small business IT technology insurance policies that help protect IT businesses, consultants & subcontractors from the unique risks that small tech businesses face when they work.

Information Technology And Internet Insurance

Some the more popular IT businesses do IT contracting or freelancing work. These businesses have specific risks they face, and can have huge exposures to uncommon risks. Even if the business is very careful, a small oversight or mistake can lead to a large and expensive lawsuit.

For information technology companies, like some of the more popular ones listed below, data security is paramount:

Application Development (Mobile & Web), Business Intelligence / Data Mining Businesses, Computer Installation & Repair, Computer Programming, Computer Retail Store, Data Analysts, Architects & Scientists, Database Administrators, Frontend Developers, Hosting, IT Business Consulting, IT Project Management, IT Staffing, IT Training, Information Technology Consulting, Life Sciences & R&D, Network Architects, Network Security Consultants, System & Network Design, Technical Writing and Web Site Development.

The IT business segment has a critical need for professional liability and errors and omissions coverage. If coverage applies, the insurer has several rights and duties such as providing a legal defense against claims and suits brought by parties claiming damages. The insurer is permitted to investigate all claims to determine whether they are covered by the policy and they may choose to litigate, deny or settle claims.

Most policies providing coverage for electronic data liability, computer professional liability, and computer errors and omissions are claims-made contracts.

Minimum recommended small business insurance coverage: Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Computer Fraud, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Errors and Omissions Liability, Professional Liability, Umbrella Liability, Hired and Nonowned Auto Liability & Workers Compensation.

Other commercial insurance policies to consider: Building, Earthquake, Flood, Real Property Legal Liability, Forgery, Cyber Liability, Employment-related Practices Liability, Directors and Officers Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.

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