As an Amazon seller, it’s crucial to have the right insurance coverage to protect yourself and your business.
Amazon has specific insurance requirements that sellers must meet to ensure they are adequately covered in the event of an accident or lawsuit.
In this guide, we’ll take a closer look at Amazon seller insurance requirements and what you need to know to protect your business.
What is Amazon seller insurance?
Amazon seller insurance refers to the insurance policies that Amazon requires its sellers to carry to protect their businesses from liability. The insurance requirements vary depending on the type of product you sell, your location, and your business size.
Amazon requires sellers to have general liability insurance, which protects your business from third-party claims of property damage, bodily injury, or personal injury. This insurance can also cover legal fees if you are sued. Amazon also requires product liability insurance, which covers claims related to product defects or malfunctions.
In addition to these requirements, Amazon may also require additional insurance coverage, such as commercial auto insurance, if you use vehicles for business purposes.
Why do you need Amazon seller insurance?
If you’re an Amazon seller, you’re operating a business, and like any business, you face certain risks. Without insurance coverage, you could be liable for damages or injuries caused by your products, services, or business operations. This could result in costly lawsuits, settlements, or judgments that could bankrupt your business.
Amazon requires sellers to have insurance coverage to protect themselves and their customers. In the event of an accident or lawsuit, insurance can provide financial protection and ensure that your business can continue to operate.
Amazon Seller Insurance Requirements
Amazon requires sellers to carry general liability insurance and product liability insurance. Let’s take a closer look at each type of insurance and what it covers.
General Liability Insurance
General liability insurance covers claims related to property damage, bodily injury, or personal injury caused by your business operations. For example, if a customer slips and falls in your store, general liability insurance would cover their medical bills and any legal fees if they sue you.
Amazon requires sellers to carry at least $1,000,000 in general liability insurance. However, depending on the type of product you sell, Amazon may require you to carry higher limits.
Product Liability Insurance
Product liability insurance covers claims related to injuries or damages caused by your products. For example, if a customer is injured by a defective product you sold, product liability insurance would cover their medical bills and any legal fees if they sue you.
Amazon requires sellers to carry at least $1,000,000 in product liability insurance. However, depending on the type of product you sell, Amazon may require you to carry higher limits.
Additional Insurance Requirements
In addition to general liability and product liability insurance, Amazon may require you to carry additional insurance coverage, depending on your business operations. For example, if you use vehicles for business purposes, Amazon may require you to carry commercial auto insurance.
Here are some of the additional insurance requirements you may need to meet:
- Commercial Auto Insurance: If you use vehicles for business purposes, such as delivering products, Amazon may require you to carry commercial auto insurance. This coverage provides liability protection if you or one of your employees causes an accident while driving a company vehicle.
- Professional Liability Insurance: If you provide professional services, such as consulting or advice, Amazon may require you to carry professional liability insurance. This coverage protects you from claims of negligence, errors, or omissions that result in financial losses for your clients.
- Workers’ Compensation Insurance: If you have employees, Amazon may require you to carry workers’ compensation insurance. This coverage provides benefits to employees who are injured or become ill due to their work.
How to Get Amazon Seller Insurance
To meet Amazon’s insurance requirements, you’ll need to purchase insurance coverage from a reputable insurance provider. Here are some steps on how to get Amazon seller insurance.
Determine Your Insurance Needs
The first step in getting Amazon seller insurance is to determine your insurance needs. Consider the type of products you sell, your business operations, and your location to identify the insurance coverage you need. This can help you determine the amount of coverage you need and the type of policy that best fits your needs.
Shop Around for Insurance Providers
Once you have determined your insurance needs, you can begin shopping around for insurance providers. Look for insurance providers that specialize in providing coverage for Amazon sellers. You can also ask for recommendations from other sellers or check with industry organizations to find reputable insurance providers.
Get Insurance Quotes
Once you have identified a few insurance providers, you can start getting insurance quotes. Provide the insurance provider with information about your business, such as your revenue, number of employees, and the type of products you sell. This will help them provide you with an accurate quote for the coverage you need.
Compare Quotes and Coverage
After receiving insurance quotes from multiple providers, compare the coverage and rates to find the best insurance policy for your business. Don’t just focus on the price, but also consider the coverage limits, deductibles, and any exclusions or limitations in the policy.
Purchase Your Insurance Policy
Once you have found the best insurance policy for your business, purchase the policy from the insurance provider. Make sure you understand the policy terms and conditions, including the coverage limits, deductibles, and any exclusions or limitations.
Submit Your Insurance Information to Amazon
After you have purchased your insurance policy, you’ll need to submit your insurance information to Amazon. You can do this through the Amazon Seller Central platform. Provide Amazon with the insurance policy number, coverage limits, and the name and contact information for your insurance provider.
Maintain Your Insurance Coverage
Once you have met Amazon’s insurance requirements, it’s important to maintain your insurance coverage. Keep your insurance policy up to date and pay your premiums on time to ensure your coverage stays in effect. Also, review your insurance policy regularly to ensure you have adequate coverage for your business needs.
In conclusion, Amazon seller insurance is a critical component of running a successful Amazon business. Meeting Amazon’s insurance requirements can help protect your business from financial losses due to accidents or lawsuits.
As an Amazon seller, it’s important to understand the insurance requirements and to work with a reputable insurance provider to get the coverage you need. By following the steps outlined in this guide, you can ensure that you meet Amazon’s insurance requirements and protect your business from liability.