When most start selling on their Amazon business, they often don’t realize that if you’re a Pro Merchant Amazon will require you to have liability insurance. It’s a recent requirement by Amazon for their sellers.
This may sound intimidating to some, but e-commerce insurance isn’t as complicated (or expensive) as you may think.
GENERAL LIABILITY
General Liability insurance covers claims of bodily injury or other physical injury or property damage. Commercial General Liability policies also cover the cost to defend or settle claims – even if the claims are fraudulent.
AMAZON’S PROFESSIONAL SELLING PLAN INSURANCE REQUIREMENTS
Sellers with professional selling plans on Amazon.com must
provide proof of Commercial General Liability insurance.
This insurance, obtained at the seller’s expense, shall cover
up to $1,000,000 per occurrence and in the aggregate and
must include products liability, bodily injury, or personal
injury, property damage, and other requirements as stated
in the Participation Agreement. The insurance must indicate
that “Amazon.com, Inc., and its affiliates and assignees” are
added as additional insureds.
The Certificate of Insurance must be the original document,
contain an additional insured endorsement, list all seller’s
subsidiaries or DBAs covered by the certificate provided,
provide at least 30 days’ notice of cancellation, modification,
or non-renewal.
You may also satisfy the insurance limits by using any
combination of Commercial General Liability and Umbrella
and/or Excess Liability insurance.
The best news is that Classic Insurance Group can help. Give us a call or send us an email. We can get you straightened out for your Amazon sellers account and make sure you’re properly protected.
