All Amazon sellers should consider getting business insurance to protect them. Amazon, however, may not give you the option since they mandate that some sellers maintain current insurance. Sellers have recently received letters from the Amazon Service team urging them to submit documentation of liability insurance for sold goods.
Sellers have recently received letters from the Amazon Service team urging them to submit documentation of amazon proof of liability insurance for goods sold by them. After receiving the email reminder, sellers have 30 days to provide this information.
Who Needs Commercial Insurance?
Sellers must “obtain and maintain at least $1 million of commercial general, umbrella, or excess liability insurance, within 30 days after exceeding $10,000 in gross proceeds in sales in a month on Amazon.com, or if otherwise requested by Amazon,” according to Section 9 of the Business Solutions Agreement. In other words, Amazon mandates that sellers who generate gross sales of above $10,000 insure their businesses to safeguard both themselves and Amazon.com. Additionally, there are requirements set forth by Amazon for a business liability insurance coverage. Review the requirements by going to the “Insurance Requirements” section.
Why Do You Need Liability Insurance Coverage from Amazon?
Business insurance offers you security. It can defend you, for instance, if someone accuses you of causing an accident or damage to their property. Additionally, if you conduct business on websites or locations other than Amazon, your coverage should be able to shield you from financial damages. Because it protects them as well, Amazon requires higher-earning sellers to carry business insurance. Amazon does not want to be held liable for litigation brought by its clients. You must include Amazon and its assignees as extra insured’s to your policy when you buy protection.
How to Present Evidence of Liability Insurance Protection
You have 30 days from the time you receive the email from the Amazon Services Team asking you to upload your Certificate of Insurance (COI) as proof of liability insurance coverage. The COI is given by your insurance carrier and explains what is covered, the amount of coverage, and any exclusions or deductibles. On the Business Insurance tab of your Seller Central account settings, you may submit your COI. The file may be submitted in the.doc,.docx, or.pdf formats.
Liability insurance is necessary
Any insurance company that satisfies the aforementioned conditions of Amazon is acceptable to you. You can check out Amazon Insurance Accelerator, a network of insurance companies that offer liability insurance to qualified selling partners at affordable prices, to quickly discover a carrier who satisfies these standards.