Do You Need Insurance to Sell on Amazon?

Selling products online presents e-commerce business owners with unique risks. While one may assume an online platform like Amazon provides insurance for these exposures, that is often not the case. Having the appropriate policy can provide financial coverage for your operations.  

Your Well Insurance agent can help you navigate the applicable requirements and work with you to secure the insurance you need. Contact us today to get started. 

Liability Coverage for Amazon Sellers 
If your business sells products through Amazon, it is essential to become familiar with the site’s insurance requirements. This helps you remain in good standing with the platform, and it can assist you in identifying policies that may provide adequate financial coverage. 

According to the Amazon Services Business Solutions Agreement, as of May 2022, if you are in the United States and gross over $10,000 in sales in a month, you typically need to carry at least $1,000,000 in commercial general, umbrella or excess liability coverage. These policies may provide financial assistance if your business is responsible for the property damage or bodily injury of others. For example, if a customer files a lawsuit claiming a product you sold caused them harm, liability coverage may pay for their losses (e.g., medical bills) and for associated legal fees.  

You may also have to provide proof of insurance to Amazon. There are nuances to Amazon’s requirements, and it is important to speak with your agent to ensure you comply with their rules. Even if you do not meet Amazon’s required sales threshold, it still may be in your business’s best interest to purchase insurance. 

Other Insurance Policies 
In addition to liability insurance, Your Well Insurance agent can help you secure other insurance policies for business. For example, depending on your operations, it may make sense to obtain workers’ compensation insurance, business interruption insurance, cyber liability insurance and ocean marine cargo insurance. Your agent can provide guidance on which policies would best suit your needs. 

How Much Does Insurance to Sell on Amazon Cost? 
The cost of comprehensive insurance coverage for your e-commerce business varies from policy to policy. Factors such as the size of your operations, your selected limits and your claims history could impact premiums. 

Contact Us 
At Well Insurance, we are proud to offer specialized e-commerce insurance products and assist Amazon sellers with their coverage needs. Contact us for more information or a quote.