“Security is not a product but a process.” - Bruce Schneier

Amazon mandates small business insurance for its Pro Merchants and sellers generating over $10,000 in monthly sales. However, even if you or your business don't meet these requirements, acquiring business insurance remains crucial. It serves as a safeguard for Amazon sellers against various risks. Without it, you might be liable to cover claims personally.

Amazon Liability Insurance: Why Is It Needed by Sellers?

Liability insurance coverage is essential for safeguarding Amazon sellers against claims of bodily injury or property damage. Some liability insurance policies may encompass the additional coverage types mandated by Amazon. For instance, you might question whether Amazon necessitates product liability insurance. The reassuring answer is that a general liability insurance policy incorporates product liability insurance as well as products and completed operations coverage.

Given that businesses encounter various risks in their daily operations, you might find that you need additional coverage. Other common types of small business insurance include:

• Commercial property insurance: This coverage safeguards your owned or rented building, tools, equipment, and inventory necessary for your operations.

• Workers’ compensation insurance: This policy provides benefits to your employees in the event of work-related injuries or illnesses.

• Commercial auto insurance: This insurance protects you and your employees while on the road if you use a company-owned vehicle for business purposes.

Amazon requires sellers to name Amazon and its assignees as additional insured parties.

General Liability Insurance

General liability insurance assists in covering claims that your business caused:

• Bodily injury

• Property damage to someone else's belongings

• Personal injury, such as libel or slander

Commercial Auto Insurance

Commercial auto insurance provides coverage for claims of bodily injury or property damage resulting from a car accident involving you or your employees while driving a business-owned vehicle.

Workers’ Compensation Insurance

Workers’ compensation insurance aids your employees in recovering from work-related injuries or illnesses by covering:

• Treatment costs

• Medical expenses

• Lost wages

Cyber Liability Insurance

When your business sells products on Amazon, you typically gather personally identifiable information (PII) from customers, which may include:

• Names

• Addresses

• Payment information

In the event of data loss or theft, having data breach insurance, also known as cyber insurance by some insurance companies, is essential.

Commercial Umbrella Insurance

Commercial umbrella insurance increases the limits of specific liability policies. Thus, if you face a costly claim that exceeds your general liability limit, this coverage can assist in covering the difference.

How Much Does Insurance for Amazon Sellers Cost?

The cost of Amazon seller insurance can vary and is dependent on the type of coverage you're obtaining. On average, our general liability insurance customers paid around $85 per month for a Business Owner's Policy (BOP).

It's important to note that the specific cost of your business's Amazon seller insurance can be influenced by factors such as:

• Claims history

• Type of business

• Number of employees

The most effective way to determine the cost of Amazon seller insurance for your business is to request a quote.

Overview

At AMZ Shifu, we understand the importance of liability insurance for Amazon sellers. Our team can help you navigate the complexities of insurance coverage and ensure you have the protection you need. If you have questions about liability insurance or want to learn more about how we can assist you.

Book a Call with us today!

We're here to provide guidance and support every step of the way.