Insurance Requirements


#1

Would like to make sure that liability insurance for professional FBA sellers is only required when sales are over $10K in three consecutive months.

Can someone confirm that this is indeed the case per June, 2018?

https://sellercentral.amazon.com/gp/help/1791?language=en-US&ref=ag_1791_cont_200386300


#2

It still states the same, further down in page:

“Insurance Threshold” means the applicable one of the following:
•Ten Thousand Canadian Dollars ($10,000) (if the Elected Country is Canada),
•One Million Japanese Yen (¥1,000,000) (if the Elected Country is Japan),
•One Hundred Thousand Mexican Pesos ($100,000) (if the Elected Country is Mexico),
•Ten Thousand U.S. Dollars ($10,000) (if the Elected Country is the United States).

Dve


#3

https://sellercentral.amazon.com/gp/help/help.html?itemID=200386300&language=en-US&ref=ag_200386300_relt_1791

Pro Merchant Insurance Requirements

Pro Merchants who sell on Amazon must provide proof of Commercial General Liability insurance. This insurance, obtained at the merchant’s expense, shall cover up to $1,000,000 per occurrence and in the aggregate and must include product liability, bodily injury, or personal injury, property damage, and other requirements as stated in the Amazon Services Business Solutions Agreement. The insurance must indicate that “Amazon.com, Inc., and its affiliates and assignees” are added as additional insureds.


#4

(No mention of a $10K threshold for Pro Merchants.)


#6

Right, I think that’s what it is. Just odd it does not specify this in the Summary of Requirements for Pro Merchant Insurance, but only in the complete list of insurance requirements.


#7

At the bottom of the page you are referring to it says:

For a complete list of the insurance requirements, please see the Amazon Services Business Solutions Agreement.(https://sellercentral.amazon.com/gp/help/1791?language=en-US&ref=ag_1791_cont_200386300)

On that page under “9. Insurances” it reads:
If the gross proceeds from Your Transactions exceed the applicable 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 for each applicable Elected Country commercial general, umbrella or excess liability insurance with the Insurance Limits per occurrence and in 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 to the following address: c/o Amazon, P.O. Box 81226, Seattle, WA 98108-1226, Attention: Risk Management.

At the bottom it then defines insurances threshold as one of the following:
Ten Thousand Canadian Dollars ($10,000) (if the Elected Country is Canada),
One Million Japanese Yen (¥1,000,000) (if the Elected Country is Japan),
One Hundred Thousand Mexican Pesos ($100,000) (if the Elected Country is Mexico),
Ten Thousand U.S. Dollars ($10,000) (if the Elected Country is the United States).

I’m a new seller and just want to make sure I’m compliant with Amazon’s requirements. I’m confused, because I’m reading different opinions.


#8

My understanding is that the Amazon Services Business Solutions Agreement / 10K threshold is for all US sellers on Amazon.

If you upgrade to a Pro Merchant account you are subject to the additional insurance rules.

(You probably need liability insurance anyway, regardless of Amazon requirements.)


#9

Sure, it’s just that I would prefer to see first whether I will be able to sell anything at all before committing to a year long of insurance policy.


#10

Just remember that until you buy insurance, you are self insured.

All it takes is a problem with a customer, competitor or another brand and you could be dead in the water. If you are starting out very small without much for plans for growth, the concerns will be minimal. Anyone with an established business should already have insurance and those who are planning to invest substantially, should as well.

Dave


#11

I make monthly payments on my policy. I am fairly certain that I can cancel it at any time. (I don’t know for sure because it has never come up.)


#12

As everyone already stated; Commercial Liability Insurance is required for all Professional Sellers. The threshold was sales exceeding $10,000 for three consecutive months.

I have it, and pay quarterly.

Many would already know my theory on why it’s been left out of the Pro Merchant Insurance Requirements, and Amazon Services Business Solutions Agreement documents.

Funky

P.S. It would be interesting to hear what Seller Support says about it?


closed #13

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