Good Morning …After reading the new news for Sept 1,2021 requirement on sellers obtaining liability insurance for property and personal damage on defective items I wanted to know what others used or found to be the best or easiest route to obtain insurance as required. Did you use your own or did you use suggested companies by amazon. ?
We first contacted our primary (personal) insurer. They did not offer business liability insurance but referred us to another company who does. Very simple and quick to get set up.
I suggest starting with an insurer with whom you already have a good, trusting relationship (e.g., home, auto, personal liability, medical, etc).
Thank you kindly…So we will have to provide proof as of sept 1 to amazon or only if they ask?
It sounds like we are required to provide proof to Amazon if (a) we have $10k in sales in one month and/or (b) if they ask.
It also sounds like if they ask, we have 7 days to get the insurance (if not already obtained) and provide the proof–and if a Seller does not have insurance when Amazon asks, then I would recommend using their Insurance Accelerator.
Amazon required this years ago. This is not a new requirement.
Contact your insurance agent, ours was nothing as we already were covered
If you are required to have insurance or we request that you obtain insurance and you do not provide proof of coverage within 7 days after we notify you of a claim, we will expect you to reimburse us for any concession we grant to the customer to resolve their claim. In addition, we may withhold funds from your disbursements in the amount of the concession. If you disagree with our decision to provide a concession to the customer, you can dispute the concession by submitting an appeal within 30 days. Your appeal should include any information that you think would be relevant to our review of the claim, such as evidence that your product was not defective or did not cause the customer’s injury or damage
Check with any trade associations you belong to and if you don’t it may be advantageous to join one. Many provide discounts through some carriers. We belong to a business group that offers a discount like this and it’s considerably less money than going through a broker.
We have been in business for 32 years, soon to be 33. We have had insurance for 32 years. We are incorporated in our state.
I can not imagine operating in todays world, or in the last century, when we started without any insurance. Many of our larger direct customers require it. We go on-site to some of these customers, or to their customers to perform work. We most often have to provide a binder before we go on site so they have proof of insurance.
We use a local company owned by someone we trust. They represent one of the larger insurance companies that have very good rates. The insurance company does tend to only underwrite good businesses (and personal policies) with little loss. For that reason the price is reasonable.
We find that adding a umbrella policy increases our liability coverage and does not add much to the total cost.
We have about a half million in manufacturing equipment, work with lifts and heavy equipment, very sharp tools, machines that crush. Our products could cause harm, any product could cause harm. Policies and Procedures are in place to mitigate that.
All in Liability, Operational, Loss, Fire, Damage, everything… $500-$700 a year.
My opinion, insurance is something that is needed and need not be feared.
I have had coverage since starting amazon I searched and chose my own.
When you search for a policy just make sure it meets Amazons requirements
Your commercial liability insurance policy must meet all of the following criteria:
1 The policy limit must be at least $1 million per occurrence and in aggregate, and cover liabilities caused by or occurring in conjunction with your business operations, including products, products/completed operations and bodily injury;
2 The insurance policy type can be either commercial general, umbrella, or excess liability and be occurrence based;
3 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);
4 Your insurance provider must give Amazon at least 30 days’ notice of cancellation, modification or nonrenewal;
5 Your insurance provider must issue a “Certificate of Insurance” on ACORD and provide a traceable code or verification method;
6 The policy must name " Amazon.com Services LLC., and its affiliates and assignees" as additional insureds;
7 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;
8 The policy must cover all sales from products you have listed on the Amazon website;
9 Your insured name must match the “legal entity” name you provided to Amazon (view your legal entity name);
10 The policy must be completed in its entirety and signed; and
11 The policy must be valid for at least 60 days from the date of submission.
I guess it might be time to discontinue our flamethrower line.
Then get use to the insurance audits every year. Audit your sales and payroll because your insurance price is based on your sales not how much coverage you need. Sell more and pay more and auditors always downloading all the stuff in your Quickbooks program to find a way to charge you another $1500 on the policy.
Then pay a commission to the kings who sent them the business.
I guess I am the ONLY Seller that was unaware of this Liability Insurance Requirement for sales over $10K for 3 consecutive months (now 1 month)…
To date I have NEVER received ANY notification from Amazon concerning this requirement. I would think that something like this should generate an automated email concerning this requirement at the VERY least.
My reading of this policy is that it is based on Sales figures and NOT the item being sold. Am I reading this correctly?
And yet ANOTHER way that Amazon makes it HARDER to be a 3rd Party Seller on Amazon…
I have never seen a company that punishes success more than Amazon…
i would hardly call requiring insurance a punishment for success.
Carrying business insurance is a part of doing business. Want to cut a commerical properties lawn? well, you have to show proof of insurance. Want to go on an industrial site and try to sell something, have to show proof of insurance.
Insurance has been required, but exactly who was required to have it was a little bit grey - in one part of the TOS it said you needed it, in another policy/document it said you only needed it i you hit the required sales numbers for three consecutive months. Not its just one month hitting $10K.
What is still not clear, if you hit $10k in sales a year ago, but never since, are you required to have it? I would always assume yes to be on the safe side myself.
I have never noticed the Amazon policy before. BUT I have carried liability insurance since starting business in 2004. We live in a litigious country and it only makes sense to us to be prepared. We also have umbrella insurance. I just contacted my broker today to let them know the Amazon requirement for adding Amz as an insured party.
Yes, I too am in this boat. I was also unaware of this requirement from Amazon until today.
I also agree that it is a simple matter to just call and have Amazon added to the existing policy.
I am just surprised that for something SO important to Amazon, that Amazon does not have some sort of automated “Trigger” when the Seller reaches the Regulated sales figure that would generate an automated message in your Amazon inbox informing you of the requirement.
Good thing I stay away from power tools from the thrift stores lol all jokes aside I wonder if this means Amazon will arbitrate claims over 1K, I also wonder if since the insurance requirements are that Amazon be a co-signee on the policy does this mean Amazon can open claims on our business insurance and would they do so for claims under 1K? If 80% of claims are under 1K why in the world would Amazon agree to fund this and what difference would it make to them if you’re insured or not for the funding of such claims? Why not just outright mandate and check sellers for insurance?