Amazon Seller Insurance: Requirements, Types, Costs, & Providers

If you’re selling products on Amazon, it’s likely you’ll be required to arrange appropriate online retail insurance to protect your business and your customers. Leader Team Broker is an Amazon insurance specialist, and we can help you arrange the appropriate business insurance to meet your contractual requirements.

To sell on Amazon, you must obtain and maintain a valid commercial liability insurance policy once the gross proceeds from your transactions exceed the applicable insurance threshold in sales in any month.

“Insurance Threshold” means the applicable one of the following:

• Ten Thousand Euros ($10,000) in gross proceeds in sales in one month on Amazon.com (US and Canada)
• Five Thousand Euros (€5,000) (if the Amazon Site is the DE Amazon Site, the FR Amazon Site, the IT Amazon Site, the ES Amazon Site, the BE Amazon Sitor the NL Amazon Site),
• Four Thousand British Pounds (£4,000) (if the Amazon Site is the UK Amazon Site),
• Fifty Thousand Swedish Krona (kr 50,000) (if the Amazon Site is the SE Amazon Site),
• Twenty-Two Thousand Five Hundred Polish Złoty (PLN 22,500) (if the Amazon Site is the PL Amazon Site).

What is Amazon seller insurance?

Amazon seller insurance is an insurance policy designed to meet the requirements of selling your products online. Whether you’re a small online retail business or a larger Fulfilled by Amazon retailer, we can accommodate your needs. Amazon FBA Partners are required to arrange product liability insurance with a number of specific conditions. For example, Amazon will require that they must be named on your insurance policy as an additional insured.

I am an international seller selling in the US but also in Europe. How can I obtain insurance?

Contact Leader Team Broker if you are a company estabilished in Europe. We know exacly what kind of insurance you need.  If you are a company estabilished in US, we work with our trusted partner Assureful and we will put you in contact with the right specialist.

Where to get liability insurance and how much it costs?

Leader Team Broker has been offering this insurance to Amazon sellers established in 24 countries across Europe since 2021. In over three years, we have issued thousands of insurance policies, all of which were accepted by Amazon.

Leader Team Broker will know exactly what type of coverage you need as an Amazon seller.

Read here reviews from other clients and Amazon sellers:  https://g.page/r/CUhc4CWWkm-REBM/review

Alvaro Garrido-SPAIN: “I got my Amazon insurance from this broker agency. I can only recommend them; the communication was very good, and they delivered the insurance very fast!”

Tom Hanegraaff- FRANCE- “Excellent service for my Amazon professional insurance. Quick and efficient!”

Nikolay Fesliyski- BULGARIA “Very happy with the communication and the swift responses and service overall. We got the job done in just 48 hours. Searching for this services took more time :). The offering was tailored exactly to the Amazon requirements. This was exactly what we need and it was really no brainer. We were also offered several options and received good explanation in order to take informed business decision.I will recommend this broker to others.

Kosyo Yotov-BULGARIA: I am very pleased with their service. They are fast and responsive. Good explanation of insurance and their offer cover all Amazon requirements. I also receive help for uploading the documents in Amazon until the certificate is approved. Very satisfied from this broker and will highly recommend it. Many thanks!

The average cost is typically around $550-$2.000 per year.

Here are some factors insurance providers consider:

• Your product: The type of product you sell has a significant impact on your insurance costs. Insurance providers assess the ‘riskiness’ of your product. Selling a high-risk product? Expect a higher premium.
• Territory: The price depends in the contries you sell your product. If you sell in US the premium will he higher. In case you sell just in Europe the price can be smaller.
• Revenue: As your business scales and you increase your annual revenue, your premiums will typically increase.

Do I need to upload proof of insurance to Amazon?

Yes, once you obtain insurance, you must upload your Certificate of Insurance to Seller Central. You can request the Certificate of Insurance from your insurance provider.

Insurance policy criteria

Your commercial liability insurance policy must meet all of the following criteria:

• Policy limits must be at least $1 million per occurrence and in aggregate, covering all liabilities caused by or occurring in conjunction with the operation of your business, including products, products/completed operations and bodily injury;
• Policy type can be either commercial general, umbrella, or excess liability insurance and must be written on an occurrence basis;
• Your insurance provider must have global claim handling capability and a financial rating of S&P A- and/or AM Best A- or better (if S&P or AM best is not valid or used in the country where you are required to obtain insurance, a local equivalent is allowed);
• Your insurance provider must give Amazon at least 30 days’ notice of cancellation, modification or nonrenewal;
• The policy must name ” Amazon.com Services LLC., and its affiliates and assignees” as additional insureds;
• The deductible for any policy(ies) must not be greater than $10,000 and any deductible amount must be listed on the certificate(s) of insurance;
• The policy must cover all sales from products you have listed on the Amazon website;
• Your insured name must match the “legal entity” name you provided to Amazon (To view your legal entity name, see your Account Info page);
• The policy must be completed in its entirety and signed; and
• The policy must be valid for at least 60 days from the date of submission.

What type of Amazon seller insurance you need

Amazon requires sellers to have $1M in coverage.

You must have Commercial General Liability (CGL) coverage with limits of no less than:

$1,000,000 per occurrence, $1,000,000 in the aggregate for products and completed operations, and $1,000,000 in the general aggregate. Such insurance must include products liability, products/completed operations, bodily injury, personal injury, broad form property damage, and broad form contractual coverage.

You may also satisfy the insurance limits by using any combination of Commercial General Liability and Umbrella and/or Excess Liability insurance.

However, if you do this, the required ‘Additional Insured’ wording must be as follows:

“Amazon.com, Inc., its affiliates and assignees are additional insureds, as their interests may appear”

Amazon states: “Please contact your insurer to add ‘Amazon.com Services LLC and its affiliates and assignees’ with address ‘P.O. Box 81226, Seattle, WA 98108-1226.’ as an additional insured.”

Looking for Amazon Seller Insurance?

Click here:

https://leaderteam.ro/en/product-liability-insurance-for-amazon-sellers/

Simple and fast: Leader Team consultants work with questionnaires that are very easy to complete and can get a price quote in just 48 hours