As an Amazon seller, you are responsible for the safety of any products you sell. If your product causes bodily injury, property damage, or is not properly labeled, you can be held liable to pay medical bills, legal fees, the cost to replace or repair property, and more. A single claim can cost thousands of dollars—if not hundreds of thousands—and can cause you to pause business operations, issue recalls, and sometimes even close your business. Are you ready to shoulder a claim alone and put your business’s reputation and revenue on the line? Amazon insurance can help protect you from that.
Most Amazon sellers are now required to have insurance. While there are some policy options Amazon directly offers you, there are other excellent alternatives out there. Let’s take a closer look at the insurance requirements and where else you can find Amazon business insurance.
One of the biggest downsides to the Insurance Accelerator is the small list of insurances offered. It limits sellers to who they think they can get insurance from instead of encouraging you to shop around for competitive policies. That is why we want to show you three of the best business insurance alternatives for Amazon sellers who you won’t find on the Insurance Accelerator list. Their policies comply with Amazon’s requirements and offer you comprehensive product liability insurance.
What Are The Amazon Insurance Requirements?
If you make $10,000 in sales in 30 days, Amazon requires you to carry product liability insurance. This helps protect you as a seller in the case of a product liability claim. Amazon used to also be held liable in a claim, however, the Amazon seller insurance requirements now place almost all responsibility on you as the seller. If you are abiding by seller requirements and hold a valid insurance policy, Amazon will help cover you with a claim as long as it is under $1,000. Anything more becomes your responsibility.
According to the Amazon Pro Merchant Insurance Requirements, you must:
- Show current proof of a valid insurance policy
- Provide an original, signed Certificate of Insurance document
- Verify your insured name matches the “legal entity” name you provide to Amazon
- Name “Amazon.com Services LLC., and its affiliates and assignees” as additional insureds on the policy
- Have a general liability limit of at least $1 million dollars, product liability insurance, personal injury insurance, occurrence basis claims, covers all sales from products you have listed on Amazon, and any other requirements outlined in the Participation Agreement
- Ensure the deductible for any policy is not greater than $10,000 and any deductible amount is listed on the Certificate Of Insurance
- Obtain a valid policy for at least 60 days from the date of submission, and your provider must give Amazon a minimum of 30 days’ notice of cancellation, modification, or nonrenewal
- Be sure your insurance provider has a financial rating of S&P A- and/or AM Best A- or better and global claim handling capability
Where Can I Get Business Insurance For Amazon Sellers?
You can get Amazon liability insurance from many small business and e-commerce insurance companies, as well as the Amazon Insurance Accelerator. Sellers do not have to get a policy directly from the Insurance Accelerator. You can work with any provider of your choosing as long as they meet Amazon’s insurance requirements. Amazon Insurance Accelerator
The Amazon Insurance Accelerator is a program designed by Amazon giving sellers access to a variety of approved insurance policies. These companies have partnered with Amazon to offer their policies quickly and conveniently to sellers. You can compare different product liability policy options and submit a quote. You can currently get a policy through Insurance Accelerator from:
- Bold Penguin
- Chubb
- Harborway Insurance
- Hiscox
- Liberty Mutual
- Markel and Travelers
- Next Insurance
- Simply Business, Inc.
One of the biggest downsides to the Insurance Accelerator is the small list of insurances offered. It limits sellers to who they think they can get insurance from instead of encouraging you to shop around for competitive policies. That is why we want to show you three of the best business insurance alternatives for Amazon sellers who you won’t find on the Insurance Accelerator list. Their policies comply with Amazon’s requirements and offer you comprehensive product liability insurance.
Insurance Canopy Amazon Insurance
Amazon Seller Insurance with Insurance Canopy offers:
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- General Liability Aggregate of $2 million
- Product Liability & Completed Operations Aggregate of $2 million
- Personal & Advertising injury
- Each Occurrence limit
- Damage to Premises Rented to You
- Medical Expense limit
- Occurrence-based policies
- Cyber Liability insurance
- Tools & Equipment coverage
- Inland Marine insurance
- Hired & Non-hired auto
- Employee Benefits insurance
- Product Recall insurance
- Additional Insureds
- Certificate of Insurance
- Online application and claims process
- 24/7 access to policy documents
Thimble Amazon Insurance
Amazon Seller Insurance with Thimble offers:
- General Liability Aggregate of $1–2 million
- Product Liability Aggregate of $1–2 million
- Customer Property Protection
- Business Equipment limits
- Additional Insureds
- Certificate of Insurance
- Online application and claims process
General Liability Insure Amazon Insurance
Amazon Seller Insurance with General Liability Insure offers:
- General Liability Aggregate of $1–2 million
- Product Liability Aggregate of $1–2 million
- Professional Liability insurance
- Inland Marine insurance
- Cyber Liability insurance
- Employers Liability
- Commercial Auto insurance
- Workers Compensation
- Additional Insureds
- Certificate of Insurance
- Online application and claims process
