Update on commercial liability insurance policies for sellers

#1

On June 13, 2022, we updated our Commercial Liability Insurance policy to require zero-deductible policies from sellers.

Following this update, a number of sellers told us about the challenges they face in procuring zero-deductible policies. We thank our sellers for this feedback, and we won’t proceed with this change.

We will continue to allow policies with deductibles for sellers on Amazon, and have reverted to our previous policy requirement:

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.

We will reflect this update on our Commercial Liability Insurance policy in the coming days. For more information, go to Business Insurance and A-to-z Claims Process for Property Damage and Personal Injury.

#2

See!.. They do listen! Thank you!

#3

Thanks very much.

It’s always refreshing when common sense prevails!

#4

@RDXAudio

The deductible was for $1 million in sales.

Your policy can include a deductible if (i) your gross proceeds from sales of your products in the Amazon.com store exceed USD 1 million in the last 12 months

The FAQ still states this.

#5

“We will reflect this update on our Commercial Liability Insurance policy in the coming days.”

#6

Hopefully they will also listen to the mass of sellers who wish to keep the old Send/replenish inventory workflow.

#7

Cool. Can we also revisit free returns on fashion items? Sellers should have the option to charge return shipping on discretionary returns.

#8

Chubb General Liability Insurance Policy bought through Amazon Accelerator program has a 0 deductible automatically. Our liability insurance is $250 per year for sales under $100,000.

#9

Does this mean $100k gross sales? What happens if you exceed $100k? Just curious.

#10

Let’s just hope they start listening a lot more to us now. There are tons that can be changed/improved with wins for all.

#11

I guess Amazon realizes cutting off their nose to spite their face is not a good idea. Until the next time that is.

#12

I am glad someone is humble enough to do this and state this publicly.

#15

great… as on any given 2 week period - amazon is holding thousands of dollars from many of us sellers - the -0- deductible made no sense… on top of being hard to find for a reasonable amount.

#16

One of the insurer’s that Amazon referenced with a link last year, offers great rates for under $1,000,000 gross sales with no deductible.

#17

This is likely not true, depends on if the policy is auditable. Been a very large commercial insurance agent my whole life and never seen wording or an exclusion like this in any standard ISO ins policy. if you want to post a copy of the endorsement or exclusion wording for everyone then maybe I’d believe it.

#18

You guys need to read the policy and exclusions, yet to find any one of those policies that covers every item a lot of you sell. There is a huge issue here and items like baby items, vitamins, etc and hundreds of other items you are all selling is excluded, they are basically selling you a certificate of insurance and not really any product liability. if you are importing then you are the manufacturer and should be buying a policy as such. I would reach out to an independent agent first depending on what you are selling and buy a real BOP, that crap sold on amazon is just that, read all the forms already and it’s junk. A deductible on a small GL policy is also not the norm.

#19

They reevaluate at time of renewal.

#20

I have sent this feedback repeatedly, all to no avail. This change is terrible for us.

#21

Is this insurance for foreign sellers?

#22

Do sellers from that other country have to do this as well? Or do they get another pass?