Amazon and Product Liability Insurance are a crucial combination, today than ever! Recently, Amazon’s Business Solutions Agreement has changed, and the change will affect Amazon sellers the most. To help you stay informed, all the information about this change is broken down in this article.
What is the change?
Amazon businesses must have coverage if sales reach $10,000 over the span of one month. If you have been selling on Amazon for a while, you may be confused, as this policy already exists. Due to recent lawsuits against the company, Amazon now takes the policy more seriously.
Will this change be enforced?
At this time, there is no information on if or how Amazon will be enforcing this policy. However, Amazon is encouraging sellers to participate as it protects third-party purchases through the A to Z Guarantee Seller program. After 48 hours, a customer may apply any option listed in the program. Amazon’s new policy allows sellers with Product Liability Insurance to skip paying personal injury and property damage claims up to $1000. Because 80% of personal injury and property damage claims are under $1000, Amazon will essentially protect all buyers and sellers. This is a great reason to contact a member of our isure team to help insure your Amazon business today.
How should I insure my Amazon business? What type of insurance do I need?
The best type of insurance for your Amazon business is Product Liability Insurance. Simply put, Product Liability Insurance protects the products you are selling. The two instances most protected are property damage and physical injury experienced by a customer due to your product. Product Liability Insurance is essential for any business, regardless of whether you sell on Amazon or not!
Does Amazon have any requirements for Product Liability Insurance policies?
Amazon does have a few requirements for Product Liability Insurance policies, such as:
- All businesses must be categorized as “additional insured” businesses. This category is different from an everyday policy, so make sure to inform a member of our isure team
- The policy’s deductible must be under $10,000
- The policy must be completed, signed and returned to Amazon within 60 days
- You have 30 days to inform Amazon of any policy changes
- Amazon must be provided with a Certificate of Insurance. The certificate must state the people and products covered, as well as deductions in the policy.
We hope this article has clarified Amazon’s new business policies. Please contact a member of our isure team today if you have any questions about new or existing policies!