Amazon Insurance Requirements: What You Need to Know

Amazon has made it easier than ever for small businesses to sell products online. However, as a seller, it’s important to ensure that you meet all of Amazon’s insurance requirements to protect yourself and your business. In this article, we will discuss everything you need to know about Amazon’s insurance requirements so you can sell with peace of mind.

What insurance is required to sell on Amazon?

Amazon requires sellers to have two types of insurance coverage: General Liability Insurance and Product Liability Insurance.

General Liability Insurance

General Liability Insurance, also known as GL Insurance, covers third-party bodily injury, property damage, and personal injury claims. This type of insurance is important for all businesses because it protects you from unexpected accidents or incidents that may occur in your business premises or operations.

Amazon requires that all sellers have a minimum of $1,000,000 per occurrence and $2,000,000 in aggregate for General Liability Insurance. This requirement helps to ensure that sellers are able to cover damages or losses that may arise from accidents or injuries caused by their products or business operations.

Product Liability Insurance

Product Liability Insurance covers sellers for claims arising out of the use of their products. This means that if a buyer is hurt or experiences damage to their property as a result of a product sold by a seller, the seller’s insurance policy will cover the damages.

Amazon requires that all sellers have at least $1,000,000 per occurrence for Product Liability Insurance. This coverage helps to protect sellers from costly legal fees and settlements that may arise from product-related claims.

Why are these insurance requirements important?

Amazon’s insurance requirements are important because they help to protect both sellers and Amazon customers. As a seller, having the proper insurance coverage can help you avoid costly legal fees and damages in the event of an accident or product-related claim.

For Amazon customers, these insurance requirements help to ensure that they are protected in the unlikely event that they experience any harm or loss due to a product sold by an Amazon seller. As such, this can help customers feel more confident about making purchases on Amazon and lead to increased sales for sellers.

How do I get insurance coverage?

If you are a new seller on Amazon, you will need to provide proof of insurance coverage before you can start selling. You can obtain insurance coverage from a number of insurance providers online or through a local insurance agent.

When selecting an insurance provider, it’s important to choose a provider that specializes in insurance coverage for small businesses. You should also make sure that the provider you choose is reputable and has a track record of providing quality service to their clients.

Frequently Asked Questions

Do I need insurance if I am only selling a few items on Amazon?

Yes, all sellers on Amazon are required to have insurance coverage regardless of the number of items they sell on the platform. This requirement helps to ensure that all Amazon customers are protected in the event of any accidents, injuries or damages that may result from a seller’s products or business operations.

What happens if I don’t have insurance?

If you do not have insurance coverage that meets Amazon’s requirements, you will not be able to sell products on the platform. Additionally, if you are found to be selling products without the proper insurance coverage, Amazon may suspend or close your seller account.

Can I purchase insurance through Amazon?

No, Amazon does not offer insurance coverage for sellers. You will need to purchase insurance coverage from an independent insurance provider that specializes in providing coverage for small businesses.

What happens if I already have insurance, but it does not meet Amazon’s requirements?

If you already have insurance coverage, but it does not meet Amazon’s requirements, you will need to purchase additional coverage to meet their requirements. You can also work with your insurance provider to adjust your policy to meet Amazon’s requirements.

What happens if I make a claim on my insurance policy?

If you need to make a claim on your insurance policy, you should contact your insurance provider immediately. Your provider will work with you to investigate the claim and determine if it is covered under your policy.

Conclusion

Ensuring that you have the proper insurance coverage is essential for selling on Amazon. By meeting Amazon’s insurance requirements, you can protect yourself, your business, and your customers from any potential accidents or incidents that may arise. If you have any questions about Amazon’s insurance requirements or how to obtain insurance coverage, it’s recommended that you speak with an insurance professional who can help you navigate the process.