Amazon Seller Insurance

Insurance for sellers on Amazon, Amazon FBA – Fulfilled by Amazon, Private Label to Europe & USA

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AMAZON RETAILER INSURANCE
PRODUCT LIABILITY INSURANCE USA
AMAZON “ADDITIONAL INSURED”
FULFILMENT BY  AMAZON – AMAZON FBA
EXPORT INSURANCE SPECIALISTS
LOW PREMIUMS – SPECIALIST INSURERS

Due to the huge volume of calls we are receiving we are currently only quoting Amazon Sellers where both the business is registered in the United Kingdom and the principals/proprietors/directors are  domiciled in the United Kingdom.

Do I need insurance as an Amazon Retailer?

Whether you sell your goods on Amazon or one of the other online marketplaces , whether you are a small business or much larger Fulfilled by Amazon retailer your time is better spent running your business than trying to find the right insurance, particularly with some of the specialist covers needed not generally being available.

As a business insurance broker, we have significant experience working with online retailers and exporters, particularly to the USA marketplace, with USA Product Liability insurance being one of our specialist areas. We can bespoke your cover to your needs and we really do understand you when you talk about protecting your business when selling online.

What is Amazon Seller Insurance

Amazon Seller Insurance is a pretty wide term, if you are an online retailer selling on this e-commerce platform then certain types of insurance is going to be a requirement. When you became an FBA Partner you may remember that you agreed to a number of things, particularly that Liability Insurance including Product Liability Insurance must be in force.

Whilst most businesses have Combined Liability which includes Public Liability and Product Liability Insurance, depending on your type of business determines where the risk is. As an online retailer selling goods either through Amazon or even your own e-commerce site Product Liability Insurance is likely to be the most important insurance cover required.

Product Liability Insurance is important to you not only as Amazon FBA retailer but whenever and wherever you sell you products. It is there to protect you against claims where your product has allegedly caused injury, loss or even damage to someone or their property.

Amazon Private Label is a great concept you can repackage your products with your own personal branding, Product Liability insurance would cover this type of activity but as you do this it then can become recognised as your product.

Particularly as a Seller partnering with Amazon, you are required to have insurance in place once you reach a certain threshold that also names Amazon as additional insured, this remains an option with some of our markets, just let us know that this extension is required.

What is Amazon’s “Additional Insured”

It’s exactly as it says, Amazon require that when you reach a certain amount of sales they must be named on your insurance policy as an additional insured.

Sometimes this can be a problem for many UK insurers as the majority wont provide this cover, so you need a specialist insurer and broker that understands these types of requirements. We understand that insurance and wordings can be full of jargon and reading a policy isn’t really everyone’s idea of fun, but it is critical, and we are here to help you.

You can check out what Amazon say about insurance requirements here 

How much product liability insurance cover do I need when I sell on Amazon

When selling on Amazon whether you are required to name Amazon as an additional insured or not it’s prudent that you have sufficient cover in place for product liability. The limit of indemnity is the amount that your insurer will pay up to in the event of loss, this could be for loss, damage or injury. Whilst the amount that Amazon require is less than £1million this should be seen as a minimum, we recommend at least £2million and if you are shipping to the USA a higher amount should be considered.

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I only retail a small amount on Amazon, do I need Insurance?

It does not matter where you sell your products, or in what volume, on-line, in a retail shop environment, you wholesale, or you distribute.

If you are selling on other e-commerce platforms as well such as Etsy for instance or you are involved in dropship or other similar e-commerce sites just selling even one product can expose you to a claim.

A claim can come from anywhere and even if you are not found to be at fault you may still be subjected to large legal costs just to prove your innocence. So, do you require insurance even if you sell the occasional product on Amazon, the answer is yes.

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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.

Amazon Seller Insurance

If you’d like help exploring your Amazon Seller insurance needs, call Real insurance Brokers today!

Real Insurance Brokers UK
Real Insurance Brokers UK