Cost of Amazon Seller Insurance
All sellers on Amazon are required to possess insurance. General liability insurance for an amazon seller will depend on the location, products, country where products are manufactured, inventory, and sale.
Why Amazon Sellers require Insurance
Selling products on Amazon is like any other business. Having insurance is necessary to protect your business in the event of any unforeseen circumstances. For example, someone can buy a product from your company that can cause illness. That person decides to sue, and as the business owner, you could be facing severe financial losses. Amazon will not be held liable for your business. There it is a requirement to sell on amazon that you get the Amazon seller’s insurance policy.
The policy will ensure your business is protected against any claims resulting from unforeseen circumstances. It includes legal fees, medical bills, property damage, and other fees that your business is liable for.
Insurance Requirement for Amazon Sellers
Pro sellers on amazon must invest in
General Liability insurance
“Sellers with professional selling plans on Amazon.com must provide proof of economic General insurance . This insurance, obtained at the seller’s expense, shall cover to $1,000,000 per occurrence and within the aggregate and must include products liability, bodily injury, or personal injury, property damage, and other requirements as stated within the Participation Agreement. The insurance must indicate that “Amazon.com, Inc., and its affiliates and assignees” are added as additional insureds.”
It details that the document.
- Be an original document.
- Be completed in its entirety and signed.
- Contain an Additional Insured Endorsement.
- List all seller subsidiaries covered by the certificate provided.
- Provide a minimum of 30 days’ notice of cancellation, modification, or non-renewal.
- Show complete insurance carrier names as listed within the A.M. Best Property & Casualty Guide.
Without the purchase of the insurance, you cannot sell on Amazon. The giant online seller amazon cannot purchase the insurance on your behalf.