If you want to sell products on Amazon, you need to meet the basic insurance requirements for selling on Amazon. The following are the minimum insurances required by Amazon for all sellers:
1. General liability insurance
This protects sellers from bodily injury, property damage, or personal injury caused by business operations. Claim. It also covers damage caused when the seller holds third-party goods during business hours. For example, if a customer slips and falls in a seller’s warehouse, they can sue the seller for damages under general liability insurance.
The good news is that most professional sellers have this protection through their general business insurance policy (also called general business liability).
2. Business income or additional expenses
This includes inventory losses caused by natural disasters (floods) and other disasters (including warehouse fires, etc.), or equipment failures caused by theft and vandalism , as well as any losses resulting from employee theft/fraud due to the insured’s accounts receivable account balance (which may be caused by computer hacking attempts). These losses don’t have to be permanent; they just don’t need to be covered by another policy, such as property insurance, which is often tied to dues payments with a homeowners association (HOA).
First-party insurance protects against cancellations and lost revenue.
First-party insurance protects against canceled orders and lost revenue. This type of seller insurance provides sellers with customer dispute protection so that they can be reimbursed for any order-related losses. First-party insurance, also known as direct loss protection, is one of the most common types of seller insurance on Amazon.
First-party insurance isn’t available for every product or category, but if you’re considering getting some seller protection for your business, here are some things to keep in mind.
Sellers are required to purchase insurance before listing on Amazon. Once they’re listed and purchased, it’s too late!
Sellers will need proof of purchase at all times, as policies often require it before they will be reimbursed for lost revenue from canceled orders or returns.
If the seller finds that a claim is needed, be sure to follow the steps on the policy. Sellers can’t just send an email or call and count on the seller’s insurance to cover the seller.
Another option is to purchase third-party seller insurance. This type of insurance effectively protects a seller’s business from the financial consequences of accidents or damage during shipping. But there are a few things sellers should know before they take out insurance — including.
The limits of third-party seller insurance may not be sufficient to meet the seller’s business needs. For example, if a customer claims a shipment was damaged in transit and wants their money back, the seller would have to pay out of pocket if the shipment was insured by the seller’s carrier rather than Amazon.
First-party seller policies used to offer more protection than they do now; however, this may depend on what first-party policy the seller chooses (and whether the seller purchases from Amazon).
If the goods are damaged or lost in transit, the seller’s insurance company may need to pay out of pocket. This can be expensive, so you have to weigh the cost of purchasing insurance against how much it will cost you to replace the goods.