Many cross-border platforms now require product liability insurance. Not only the Wayfair platform, but also the top high-traffic furniture e-commerce platforms in the United States such as Overstock, Homedepot, and Lowe’s, all need to purchase product liability insurance. Recently, Sellers operating in the categories of automobiles, clothing, 3C, toys, and home appliances on Amazon have also received requirements from the platform to purchase commercial insurance of at least US$1 million. Here is an explanation of the product liability insurance that needs to be purchased to enter the Wayfair platform.
1. What is product liability insurance?
Product liability refers to the legal liability of producers or sellers for personal injury or property damage caused by product defects. The insurance that bears product liability risks is product liability insurance.
The products mentioned in product liability risks refer to products manufactured, sold, distributed or repaired by the insured; the products are no longer in the possession of the insured. According to product liability insurance provisions and legal regulations, products include not only the physical product itself, but also packaging, containers, components, equipment, as well as product instructions, warnings and other information.
2. The requirements for Wayfair product liability insurance are as follows.
1. Insurance requirements for Wayfair North America,
Insurance type: Commercial General Liability (commercial comprehensive liability insurance)
Insured amount: general aggregate (general aggregate) Amount) USD 2 million, each occurrence (amount insured) USD 1 million; lists Wayfair LLC as an additional insured. Insurance can be purchased from Chinese insurance companies or American insurance companies.
2. Insurance requirements for Wayfair Europe.
Insurance type: Commercial General Liability (commercial comprehensive liability insurance) insurance amount: general aggregate (total insurance amount) 2 million euros (or pounds), each occurrence (single insurance amount) 1 million euros (or Pounds sterling); add Wayfair stores limited as an additional insured. Insurance can be purchased from Chinese insurance companies or European insurance companies.
3. Insurance requirements for Wayfair’s North American and European stations to be settled together.
Insurance type: Commercial General Liability (commercial comprehensive liability insurance) insurance amount: general aggregate (total insurance amount) 2 million US dollars (or pounds), each occurrence (single insurance amount) 1 million US dollars (or Pounds sterling); also lists Wayfair stores limited and Wayfairllc as additional insured persons. Buy insurance from Chinese insurance companies, American or European insurance companies.
3. Insurance certificate requirements.
Insurance coverage must cover General Liability/Public Liability Insurance coverage must cover Product Liability.
The insurance compensation limit must meet at least one of the following two:
A single accident is US$1 million, and the cumulative compensation is US$2 million.
Liability cannot be excluded. Global claims coverage must have a clear future expiration date. Proof of insurance must be signed or stamped by the underwriter/broker. Proof of insurance and any supporting documentation must be issued in English.
The above is the interpretation of the product liability insurance that needs to be purchased to enter Wayfair. Purchasing product liability insurance is more important and guaranteed for sellers. It also proves that the platform has increasingly higher requirements for product safety, and the platform has higher requirements for product safety. Buyer’s responsibility.