Amazon sellers which exceed a certain amount of gross proceeds in sales are required by Amazon to obtain liability insurance (review the Business Solutions Agreement with Amazon for complete details). We have access to the appropriate markets which provide this coverage through companies with excellent financial strength as rated by AM Best, the industry standard for determining an insurance carrier’s financial strength.
When is this insurance coverage required by Amazon?
Amazon makes the process as easy as possible for their sellers. The complete details of their requirements are located within the Business Solutions Agreement which can be located on their seller central website. Amazon may also send an email denoting their insurance coverage requirements, why their insurance coverage requirements apply, and explaining how to communicate proof of insurance to them, typically via seller central. Amazon commonly requests that their sellers obtain and maintain liability insurance with a limit of at least $1 million per occurrence and in aggregate, and cover liabilities caused by or occurring in conjunction with business operations, including products, products/completed operations and bodily injury.
Well, how much will this insurance coverage for Amazon cost?
Probably much less than the average cost of insurance coverage. These policies are primarily rated based on estimated total gross annual revenues. Therefore, higher gross annual sales would equate to a higher insurance premium. Another factor which affects the cost of this coverage are the products which are being manufactured and/or sold. This is accounted for by insurance companies under what is referred to as a class code.
There are also other factors and details which contribute to the cost of insurance. In order to determine the precise cost call us at (954) 251-3312 or click here to get in touch and we’ll provide a formal offer of insurance which will satisfy Amazon’s seller insurance requirements. Please also feel free to contact us for additional information.