Do I need insurance as an Amazon Retailer?
Amazon can be a very lucrative E-Commerce online marketplace for retailers of all types of products. But being an online retailer means that you need to understand your liabilities as you would with any type of business. Finding the right covers can be not only time consuming but maybe a little daunting, are the covers you think you need actually the ones that not only protect you but also satisfy the likes of Amazon and the FBA agreements?
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.