On the 1st September 2021, Amazon in one respect have provided cover for Amazon sellers whose products are sold in the USA with some protection, however, the seller must have their own insurance in place if their product causes loss or damage to property or personal injury, however, this can be easier said than done.
Amazon has made it more of a challenge for their sellers, as an example, they require Products Liability insurance to be on an “any one loss” basis, in the UK the cover for product liability is any one loss but in the aggregate in the insurance year. Expecting the insurer to notify Amazon if the insurance is cancelled or not renewed, something that doesn’t happen in reality. And then there is the wording for Additional Insured, Amazon is pretty specific on this and something that almost all UK insurers won’t agree to, in their opinion the policy wording caters for such eventualities with covers like Indemnity to Principal, Vendors and Dual Insured, as in the insured and Amazon. So on one hand, great Amazon has come to the rescue, on the other they have made life more difficult.
Speak to us about your Amazon Products Liability insurance requirements, depending on where you sell in the world we have various solutions available.
What other insurance do I need as an Amazon Seller
Having already discussed the critical covers to protect your online retail business, there are other areas that need consideration.
Property Insurance – your business may be clicks and mortar, hence you may have premises to work from. Inevitably, you will need cover for your property such as fixtures and fittings, machinery for packaging, and of course stock cover. Property insurance will cover costs associated with a range of potential risks, these being Fire, Theft, Flood, Storm Damage.
Business Interruption Insurance – Following a claim at your business premises you might be unable to trade for a while. Business Interruption will continue to pay your overheads whilst repairs are carried out
Employers Liability Insurance – if you have people who work for you including voluntary or perhaps even on work experience it’s a legal requirement that you must have this covered.
Goods in Transit Insurance – getting your goods from A to B, delivering to an Amazon warehouse for instance means your products need covering against losses such as fire or theft.
Marine Insurance – sending your goods overseas to perhaps an FBA warehouse in the USA, Marine insurance will cover you for most eventualities on their journey from your supplier or your premises.
Cyber Insurance – getting hacked, attacked networks, social engineering, denial of service, in the modern era of technology Cyber Insurance is an essential business component.
Why use Real Insurance Brokers for your Amazon Seller Insurance
Real Insurance are a specialist insurance broker who deal with certain sectors of the market, exporters insurance as well as USA Product Liability being just two of the areas that have synergy with Amazon Sellers.
Speak with a member of our team, we can discuss your business insurance requirements whether you are a small business just staring out or a larger more seasoned enterprise.
We discuss the insurance requirements of online retailers or exporting to the USA where insurance can be different, requiring different types of insurance.
Are you a business with interests in the USA?
As a specialist in the US market for UK companies exporting there, our partners in the USA can look after your interest. You may have a sister company, a subsidiary or due to the volume of sales you have decided to have premises there employing people locally.
If this is the case then insurance will need to be obtained in the USA, this is where we can work with you both in the UK and with our insurance partners in the USA who can provide insurance cover as you would have in the UK.
They are an invaluable source of advice who know the US insurance markets, the laws that differ from state to state and the insurance covers that are commonplace there which are generally unheard of in the UK.