How to prevent the risk of purchasing false Amazon liability insurance policies

In recent years, Amazon has required sellers to provide product liability insurance. However, the problem of false insurance policies also began to emerge. Some service providers attracted sellers at low prices, resulting in many sellers being defrauded without knowing it. They did not realize the seriousness of the problem until their stores were closed.

Key elements in identifying false insurance policies

1. Risk of providing false insurance policies

According to the US POE insurance company, if the commercial liability insurance policy issued by POE cannot be verified, the policy is likely to be false. In recent cases, many sellers have been banned by Amazon and other e-commerce platforms for submitting false insurance policies. When Amazon reviewed the insurance certificates provided by the sellers, it found that the certificates did not provide sufficient evidence to confirm that they met the requirements set by the platform.

2. The real situation of POE insurance

POE Insurance provides product liability insurance at extremely low prices. For example, the 1 million yuan liability insurance required by Amazon costs less than 1,000 yuan. After investigation, it was found that POE did not provide US insurance services to Chinese companies, which put many sellers in trouble.

3. How to judge the authenticity of the insurance policy

The following points can help sellers identify fake insurance policies:

• Fixed premium feature: If the service provider selected by the seller provides insurance premiums for a fixed amount, regardless of past sales revenue, this may be determined to be a false policy. In the insurance industry, premiums should be calculated based on sales over the past 12 months, so premiums should not be fixed.

• Certificate verification required: Each policy has a certificate, and Amazon and the insurance company can conduct interconnected verification to ensure the authenticity of the policy.

By paying attention to the above key points, sellers can reduce the risk of purchasing false insurance policies and protect their stores. If you’re an Amazon seller, it’s crucial to take a hard look at your insurance policies and service providers to avoid penny-pinching.