For customer claims of $1000 or less, Amazon will resolve the claim through a concession to the customer and will not request reimbursement from you or your insurer if you provide proof of insurance. Upon receiving a claim of $1000 or less, Amazon or our third-party administrator will attempt to resolve the claim directly with the customer while providing you with details about the claim. In addition, you will have an opportunity to respond to the customer or to us with any information you feel is relevant to our review of the claim, such as evidence that your product was not defective or did not cause the customer’s damage or injury. If we are able to resolve the claim with the customer, we will ask you to provide proof of your insurance within 7 days (if you have not already done so through the Business Insurance page). If you already have insurance or if we request that you obtain it and you subsequently provide proof of coverage, we will not request reimbursement from you or your insurance provider for the amount we pay to the customer as a concession for their claim.
here comes more fraud az claims
We’ve been carrying Product Liability Insurance for the last 7 years selling on Amazon on top of paying local income state taxes. That obviously puts us at a disadvantage compared to sellers that don’t. This should level the playing field, hopefully.
We haven’t had ONE claim since we started selling. I have a feeling this will change due to this policy…
FYI when shopping for insurance make sure Product Liability is a part of the coverage. Its a lot more expensive compared to a general liability plan. $1M in sales will cost around $500 to a $2000 per year depending on type of product you sell.
Neither have we, and I’m not so sure that will change, if Amazon is pre-vetting the claim with their own money and liability on the line…but we shall see!
Definitely! We’re still under $1k/year, but it all depends.
I can see all the “how to rip off sellers on Amazon” boards now with a flurry of posts showing people how to get an easy $999.99 by claiming they were hurt using Amazon’s stellar A-Z process. The youtube videos will be soon to follow.
This has fraud written all over it and Amazon will happily facilitate it because, after all it isn’t their money they are using to ‘delight’ their customers.
Well, it IS Amazon’s money, for claims under $1K.
Amazon will be tracking and vetting all claims.
And over $1k involves not the Seller but the Seller’s insurance company–not Amazon–so Buyers who are trying to scam Sellers or Amazon will have to deal with someone else.
Don’t worry, it won’t affect any chinese sellers.
I can’t wait for all those product liability scammers to start filing those injury claims. Fabulous!
These buyers do not care, they just want their 999 for the infected paper cut from those paper napkins you sold them.
they just want their 999 for the infected paper cut from those paper napkins you sold them.
Quit scaring paper goods merchants We’re timid!
Pro tip for you paper people: smooth over any concerns like so:
Well, this should be a brand new cottage industry for scammers. When stealing the items in the order isn’t enough, make false personal injury claims for an even bigger payout.
Amazon is going to charge 3rd Party sellers for what should be THEIR Personal Injury Insurance??? The Insurance THEY sell !!! How is this not Mafia insurance??? Amazon rarely ever sides with the sellers !!
So basically Amazon will weasel out of any lawsuits and stick sellers with the legal bills, unless we pay for Amazon Insurance? This is so messed up its not even funny. We already pay 15% on all sales, shipping, and monthly fees, and yet they still want to rip us off for more money.
i thought being a retailer included taking the risk of liability for items they sell
Think of the buyers that find out this is a thing. They may just think they are trying to get easy free money from Amazon, when in turn, they are getting it from us, our insurance companies, or through increased fees we pay to Amazon… oh the joy.
Could you elaborate more? The quotes provided by (at least one of ) Amazon insurance accelerators explicitly excludes liability from manufacturing, private label etc.
Imagine we sell a coffee cup designed by us and branded by us. In my understanding, the general liability will cover any negligence on our part as a ‘seller’ (e.g. we ship a dirty cup that causes someone to vomit).
But let us say the cup causes someone’s fingers to get stuck in it due to a ‘defective’ design. Who will then be liable? Is this what is covered under product liability?
Would really help if you could share your experience and recommend providers who would cover <$1M size companies.
Sorry Amazon never protects the sellers, this is just more $1000 scams waiting to happen.
What about Non US sellers? How can they provide product liability insurance? Amazon Insurance Accelerator program is not providing this service for now…so what will be the case for Non US seller like me?
It says you have to find your own.
Why wouldn’t you want to be insured? I’ve just hit $10K in sales over 30 days, but have had insurance from nearly the start of my Amazon selling journey. It takes 1 person to sue you over the sale of 1 item to lose everything.
Forgive my ignorance, but there is one specific part of the Amazon news letter that I don’t understand:
“our Business Solutions Agreement will require sellers to obtain product liability insurance and name Amazon as an additional insured once you reach $10,000 in sales in one month on Amazon.com.”
I currently have a product liability insurance policy. However, what does “name Amazon as an additional insured” mean?
Do I need to buy insurance if I only do FBA? Thanks.