Insurance Requirements for FBA; PM accounts


I saw this in another thread and i am feeling like I need more information:
From the (SP) help files:

"Pro Merchant Insurance Requirements

Pro Merchants who sell on must provide proof of insurance. This insurance, obtained at the merchant’s expense, covers up to $1,000,000 per occurrence to include products, bodily or personal injury, property damage, and other requirements as stated in the Amazon Services Business Solutions Agreement. The insurance must indicate that and its affiliates are added as additional insured.

To audit compliance with these requirements, has contracted with IDS; from time to time, IDS will contact merchants to ask for proof of insurance. If you are contacted by IDS, please submit your Certificate of Insurance to IDS…"

From the “Business Services Agreement”

"9. Insurance.

If the Sales Proceeds from Your Transactions through either the WebStore Service or the Fulfillment by Amazon Service exceed the Insurance Threshold during each month over any period of three (3) consecutive months, or otherwise if requested by us, then within thirty (30) days thereafter, you will maintain at your expense throughout the remainder of the Term commercial general, umbrella and/or excess liability insurance with the Insurance Limits per occurrence/aggregate covering liabilities caused by or occurring in conjunction with the operation of your business, including products, products/completed operations and bodily injury, with policy(ies) naming Amazon and its assignees as additional insureds. At our request, you will provide to us certificates of insurance for the coverage"

I am a new and very small volume seller. I do 99% through FBA because of time constraints I have around filling orders around a full time job. I have been thinking about converting to a PM account so that I can list a certain product that is currently not listed on Amazon. However what does all this mean? Does everyone with PM or FBA sellers have this insurance? Where is it sold? I am such a small seller that this expense might make it unlikely to remain profitable at all. Help!!


If you do more than $10,000 in gross sales per month for 3 consecutive months, you need to purchase liability insurance:

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

+Ten Thousand Canadian Dollars ($10,000) (if Your Elected Country is Canada),+

+One Million Japanese Yen (¥1,000,000) (if Your Elected Country is Japan),+

+Ten Thousand U.S. Dollars ($10,000) (if Your Elected Country is the United States).+

Commercial general liability / umbrella insurance policies are available from different insurance agencies. See [commercial liability insurance thread from old FBA forum.|]

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