Amazon seller insurance is a type of insurance that is specifically designed to protect sellers on the Amazon platform. It provides coverage for a variety of risks associated with selling on Amazon, such as product liability, property damage, and other business-related risks.
This type of insurance is also beneficial for Amazon sellers who are concerned about the potential for legal action from customers.
Why Do Amazon Sellers Need Insurance?
Amazon sellers need insurance to protect their businesses from the risks associated with selling on the Amazon platform. This type of insurance provides protection against product liability, property damage, and other business-related risks. Without insurance, Amazon sellers could face significant financial losses in the event of a claim.
Amazon seller insurance is also beneficial for Amazon sellers who are concerned about the potential for legal action from customers. This type of insurance can provide legal protection for the seller in the event of a lawsuit. This can help to protect the seller from financial losses associated with legal fees and damages.
Types of Amazon Seller Insurance
The most common types of Amazon seller insurance are product liability, property damage, and other business-related risks.
Product liability insurance is designed to protect the Amazon seller from financial losses due to claims of product defects. This type of insurance covers the costs associated with product recalls, product liability lawsuits, and other product-related liabilities.
Property damage insurance is designed to provide coverage for physical damage to the Amazon seller’s property. This type of insurance covers the costs associated with property damage caused by fires, floods, and other natural disasters.
Other business-related risks can also be covered by Amazon seller insurance. This type of coverage can include errors and omissions insurance, cyber liability insurance, and other business-related risks.
How Much Does Amazon Seller Insurance Cost?
The average price for the required $1,000,000/$2,000,000 General Liability policy for Amazon sellers ranges from $23 to $59 per month based on location, products offered, what country the products come from, gross sales, and experience.
The cost of Amazon seller insurance will vary depending on the type of coverage you are looking for and the insurer you choose. Generally, Amazon seller insurance is more affordable than traditional business insurance because the coverage is tailored specifically to the needs of Amazon sellers.
Amazon Seller Insurance Requirements
Amazon has certain requirements in place that must be met in order for sellers to be eligible for certain types of insurance. For example, Amazon requires sellers to have a certain level of liability coverage in order to be eligible for product liability insurance.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5961 Catalog and Mail-Order Houses
- NAICS CODE: 454111 – Electronic Shopping and Mail-Order Houses
- Suggested Workers Compensation Code(s): 8810 Clerical Office Employees NOC
Amazon Seller Insurance – The Bottom Line
Amazon seller insurance is a type of insurance that is specifically designed to protect sellers on the Amazon platform. It provides coverage for a variety of risks associated with selling on Amazon, such as product liability, property damage, and other business-related risks.
Amazon seller insurance is essential for Amazon sellers who want to protect their business from the risks associated with selling on the Amazon platform. It is important to be familiar with Amazon’s seller insurance requirements in order to ensure that your business is compliant.
By understanding the types of insurance available and the requirements for Amazon seller insurance, you can ensure that your business is protected from the risks associated with selling on the Amazon platform.