Buy Amazon Seller Insurance

Amazon Seller Insurance Policy Information

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:

• What Is Amazon Seller Insurance?
• How Much Does Amazon Seller Insurance Cost?
• Why Do Amazon Sellers Need Insurance?
• What Are The Insurance Requirements For Amazon Sellers?
• What Does Amazon Seller Insurance Insurance Cover & Pay For?

Why Do Amazon Sellers Need Insurance?

Amazon sellers need insurance to protect themselves from potential financial losses due to damages or losses of their inventory, liability claims from customers, and other unexpected events.

Amazon seller insurance can also help cover the costs of legal fees and settlement costs in the event of a lawsuit. Additionally, having insurance can provide peace of mind and help maintain a good reputation among customers.

Additionally, some Amazon policies require sellers to have insurance in order to sell on their platform. This can include liability insurance, which covers any damages or injuries caused by a product sold on Amazon, and product liability insurance, which covers any damages or injuries caused by a defect in a product sold on Amazon. Without insurance, Amazon sellers may be at risk of having their account suspended or terminated, which can result in lost revenue and damage to their business.

Furthermore, insurance can also protect Amazon sellers from losses due to theft, fire, natural disasters, and other unexpected events. This can help sellers keep their business running smoothly, even in the face of unexpected challenges.

In summary, Amazon sellers need insurance to protect themselves from potential financial losses, legal fees, and to comply with Amazon policies. It also helps them to maintain a good reputation and to keep their business running smoothly even in the face of unexpected challenges.

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 party bodily injury or property damage. Typically, this coverage starts around $23/mo.

Amazon.com 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: Amazon.com Attn: Risk Management P.O. Box 81226 Seattle, WA 98108-1226, or by email: coi@amazon.com

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.

What Does Amazon Seller Insurance Insurance Cover & Pay For?

Here are some common reasons why Amazon sellers may face lawsuits and how insurance could potentially protect them:

Product Liability: If a customer alleges that a product sold by an Amazon seller caused them harm, such as injury or property damage, the seller may face a product liability lawsuit. Product liability insurance, which is designed to cover costs associated with injuries or damages caused by products, may help the seller pay for legal defense costs, settlements, or judgments.

Intellectual Property Infringement: Amazon sellers may be sued for allegedly infringing on intellectual property rights, such as copyright, trademark, or patent infringement. Intellectual property infringement insurance, also known as intellectual property liability insurance, may help cover legal costs, including attorney fees, damages, and settlements related to intellectual property infringement claims.

Breach of Contract: If an Amazon seller fails to fulfill a contract with a customer, supplier, or other party, they may face a breach of contract lawsuit. Depending on the circumstances, a general liability insurance policy or a specialized business liability insurance, such as errors and omissions (E&O) insurance or professional liability insurance, may provide coverage for breach of contract claims, including legal defense costs and damages.

Advertising Injury: Amazon sellers may be sued for alleged false advertising, defamation, or other similar claims related to their marketing and advertising activities. Advertising injury insurance, typically included as part of a general liability insurance policy, may provide coverage for legal defense costs, damages, and settlements associated with advertising injury claims.

Personal Injury: If a customer or another party alleges that they were injured due to the actions or negligence of an Amazon seller, the seller may face a personal injury lawsuit. General liability insurance or business owners policy (BOP) insurance may provide coverage for legal defense costs, settlements, or judgments related to personal injury claims.

It's important to note that insurance policies may have limitations, exclusions, and deductibles, and the specific coverage and amount of coverage available will depend on the terms and conditions of the insurance policy. Amazon sellers should carefully review their insurance policies and consult with an insurance professional to ensure that they have appropriate coverage for their specific business needs.

Commercial Insurance And Business Industry Classification

• SIC CODE: 5961 Catalog and Mail-Order Houses
• NAICS CODE: 454111 - Electronic Shopping and Mail-Order Houses
• Suggested Workers Compensation Code(s): 8810 Clerical Office Employees NOC

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.

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.

• Application Development
• Amazon Seller
• Artificial Intelligence
• Computer Electronic Repair
• Computer Programming
• Computer System / Network Developer
• Cyber Liability
• Data Breach
• eBay Sellers
• eCommerce
• Electronic Data Processing
• Electronic Data Processing Equipment
• Internet Business
• Internet Service Provider
• IT Consultant
• Online Store
• Social Media
• Software Developer
• Technology Services
• Telecommunications
• Website Design
• Specialty Computer

The information technology (IT) industry is constantly evolving and adapting to new technologies and trends. It is a critical component of many businesses and organizations, as it helps them to communicate, store data, and operate efficiently. However, the IT industry also faces unique risks and challenges that can lead to financial losses, legal issues, and damage to reputation. This is why it is essential for IT businesses to have commercial insurance to protect their assets and interests.

One of the main risks that IT businesses face is data breaches and cyber attacks. Hackers can gain access to sensitive information stored on a company's servers or systems, leading to data theft, identity theft, and other crimes. Insurance can provide coverage for these types of events, helping IT companies to mitigate the financial and legal consequences.

Another risk that IT businesses face is the possibility of equipment failure or malfunction. This can result in downtime and lost productivity, which can have a significant impact on a company's bottom line. Commercial insurance can help IT businesses to cover the costs of repairs and replacements, as well as any lost revenue or expenses incurred due to the equipment failure.

IT businesses may also face legal issues, such as intellectual property disputes or contract disputes with clients. Insurance can provide coverage for legal fees and damages, helping IT companies to defend their interests and protect their reputation.

Overall, the IT industry needs business insurance to protect against the many risks and challenges it faces. Without adequate coverage, IT businesses may be vulnerable to financial losses and legal issues that could impact their operations and success.

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.