New Enforcement for a Longstanding Amazon Insurance Requirement
Effective September 1, 2021 Amazon WILL enforce the long-standing insurance requirement that a Professional Seller Account with sales over $10,000/month will be required to have an insurance policy on file. This has always been in the Terms of Service Agreement, but never enforced by Amazon.
Included in the new requirement it states that the seller shall:
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Obtain a Commercial General Liability policy of at least $1,000,000
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That policy must also include Products Liability coverage (Products/Completed Operations)
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Be an Occurrence Form Policy
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Company Rating of A- or better
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Must cover all sales from products listed on Amazon
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Name Amazon.com Services LLC and its affiliates and assignees as additional insureds
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If a deductible is included it shall be less than $10,000
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The company name and address need to match exactly with the Seller Central Account
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Upload the COI (Certificate of Insurance) on the Seller Central account
With every requirement comes things you need to know
Pros:
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Amazon will cover all claims of 1,000 or less for sellers with no penalty.
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This insurance will cover your business on all other platform you sell on including your own website.
Cons:
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Sellers must comply by September 1, 2021.
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Sellers who are under the $10k per month threshold may still be required to get insurance.
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Amazon, MUST be included as an additional insured and notified within 30 days if the policy cancels or expires
How do I comply with such short notice?
By collaborating with a reputable eCommerce insurance agency well-versed in both insurance principles and the intricacies of Amazon, Online Seller Insurance powered by WELL Insurance has been aiding eCommerce sellers in navigating the insurance landscape and ensuring compliance with regulatory requirements. We are dedicated to extending our assistance to you as well.
Established in 2016, we pioneered the world’s first Amazon Suspension Insurance policy, marking the inception of our journey as an eCommerce insurance agency. Since then, we have expanded our services to encompass a comprehensive range of coverage options for sellers, including Commercial General Liability, Property/Inventory, Workers Compensation, Commercial Auto, and Ocean Marine Cargo coverage.
As a fully equipped independent insurance agency, we are licensed in all 50 states, providing full-service solutions tailored to meet your needs. For further details, please don’t hesitate to reach out to us at (270) 200-4264.