How to Upload General Liability Insurance to Amazon

About sellers don't realize that Amazon requires them to have product liability insurance. The retail giant is non accountable for seller's mishaps. Information technology's up to sellers to protect themselves from injuries, accidents or litigation. Luckily, eCommerce insurance is not as circuitous every bit information technology may seem.

This is where Amazon'due south Product Liability Insurance requirements can help. The market offers bully insights to get proper coverage to protect your assets.

In this post, nosotros'll dig into Amazon's insurance requirements. Y'all'll learn its pros and cons, and how you lot can meet the product liability requirements.

Why Do You Need Product Liability Insurance?

Product liability insurance protects your brand from claims that an item caused damage or injury to the customer.

Allow'south say a product you sold caused a physical injury to the buyer. In such a instance, product liability insurance will take care of the medical pecker to care for the customer.

This type of insurance can also cover whatever legal fees from lawsuits. In other words, you'd be protecting your brand from costly settlements.

Notation: Express Liability Companies (LLC) tin be an actress safeguard confronting potential lawsuits. It's not an Amazon requisite, merely an LLC tin be a 2nd layer of protection to your brand's assets.

New Amazon Product Liability Insurance Requirements

Amazon has faced some detail-related lawsuits recently. This encouraged the retail giant to enforce its long-held insurance requisites for sellers.

The motility likewise prompted new changes to Amazon's insurance policies to protect both sellers and customers.

A to Z Guarantee Expansion

A-to-Z Guarantee claims protect customers from all order issues made to 3rd-party brands. Amazon reviews each complaint and determines if it's eligible for a refund.

This new expansion further protects sellers confronting fraudulent claims. Here'southward how information technology works:

When a user files a claim, Amazon will clarify the request to show its validity.

Amazon mediates all valid claims resolutions betwixt sellers, customers, and the insurance provider.

The new expansion saves brands from having to check A-to-Z claims on their own. Instead, Amazon takes care of the process.

Watch this video to acquire more than about A to Z claims:

Amazon Pays Up

In example of valid claims, Amazon will cover whatever bounty under $k. Plus, the marketplace won't seek bounty from sellers with valid insurance.

More than lxxx% of claims are under $1,000. Past covering the expense, Amazon protects both sellers and customers who follow its policies.

Note: Sellers are responsible for claims above &1,000. This is considering such claims are often lawsuits.

Insurance Requisites for Sellers

For the moment, only Amazon sellers who earn over $10,000 per calendar month require liability insurance. Annotation that your insurance must meet the following criteria:

Policy Limits

At least $1 million per occurrence, in general aggregate, and in aggregate for products and completed operations.

The policy should encompass all liabilities related to your business operation:

Products liability
Bodily injury
Personal injury
Holding damage

Policy Type

Go for Commercial full general liability (GGL), umbrella, or excess liability. Note that your policy must exist written based on occurrence.

Policy Deductible and Coverage

The policy should cover all products listed in the marketplace. As for the deductible, this must be nether $10,000. Amazon does not take college amounts. Plus, the deductible should be listed on your certificates of insurance.

Insurance Provider

Brand certain yous hire a provider with Global claim handling capabilities. Likewise, its financial rating must be S&P A-, AM All-time A-, or higher.

Insureds

Sellers can include boosted insureds in your policy. Only ensure that they friction match the legal entity name provided to Amazon.

Note that you demand to add Amazon as an boosted insured. This further protects the marketplace by your own policy.

Cancellation Find

Amazon requires sellers to notify them of any modification or non-renewal to their policy. This must be done with at to the lowest degree xxx days' notice.

Validity

The policy must be signed and completed within at to the lowest degree 60 days from the submission appointment to Amazon.

Certificate of Insurance

Y'all'll become this document from your insurance provider. The certificate of insurance includes the persons and property covered, the coverage corporeality, deductions and exclusions.

Amazon gives you 30 days to upload the certificate of insurance to Seller Central.

You can find Amazon's Insurance Policy Criteria in Seller Key. Get to the "Plan Policy" help page and click on "Pro Merchant Insurance Requirements."

How to Get Product Liability Insurance

Sellers can select whatever insurance provider they want. Granted, their terminal choice must comply with Amazon'south policies.

The process is quite simple. Contact insurance providers similar Geico and Wells Fargo. State that you are an Amazon seller and they'll send you a quote.

You lot can also choose a visitor that specializes in eCommerce policies. The process may exist a bit easier since they already know the coverage you need.

Well Insurance, Bunker Insurance and Adjacent insurance are 3 not bad options.

But what if you lot are having trouble selecting an insurance provider? Well, y'all can get help from the Amazon Insurance Accelerator.

Amazon Insurance Accelerator

Source: Marsh

The retail giant partnered with Marsh to create Amazon Insurance Accelerator. It's a network of approved firms that offer competitive liability insurance to sellers.

You can access the Insurance Accelerator in Seller Central.

Notation that it's non required to use an insurance provider within the program. However, make certain that your chosen firm meets Amazon's policy requirements.

Note: Foreign-based sellers need a global protection policy. They must too buy insurance within their country of origin.

Final Thoughts

Note that most sellers must comply with the Amazon Product Liability Insurance requirements past September 1, 2021.

Also, it's not clear whether sellers who earn under $x,000 per month require insurance. However, it's better to be safe than sorry.

The odds of having an Amazon customer sue you are low. But it'southward always better to exist prepared. So, stick to the Amazon Production Liability Insurance requirements as much as possible.

Equally you see, information technology'southward not that complicated to insure your Amazon business. Plus, it'll give you much needed peace of mind, so y'all can focus on improving your service.

Information technology's always amend to take your insurance gear up than having no protection at all.

Author

Esteban Muñoz is an SEO copywriter at AMZ Advisers, with several years' experience in digital marketing and e-commerce. Esteban and the AMZ Advisers team have been able to achieve incredible growth on the Amazon platform for their clients by optimizing and managing their accounts and creating in-depth content marketing strategies.

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Source: https://amzadvisers.com/amazon-product-liability-insurance/