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DO I NEED INSURANCE TO SELL ON AMAZON?

Updated: Feb 25


Guest Post from Ashlin Hadden Insurance


You need to protect your ASSETS because you should AND because Amazon requires it.


Most New sellers start out thinking they can just sign up for an account and start making millions like all the TikTok and YouTubers say. But what you forget is that there are expenses that go along with running your own business. And Yes, an Amazon 3rd party seller is your business! Another huge mistake they miss is that when they signed Amazon’s Terms of Service (TOS) they stated that they have insurance and that you will provide it at any time to Amazon.


So what is required?


If you have a Professional Selling Plan, Amazon requires you to have General Liability Insurance. The requirement states;


“Sellers with professional selling plans on Amazon.com must provide proof of Commercial General Liability insurance. This insurance, obtained at the seller’s expense, shall cover up to $1,000,000 per occurrence and in the aggregate and must include product liability, bodily injury, or personal injury, property damage, and other requirements as stated in the Participation Agreement. The insurance must indicate that “Amazon.com, Inc., and its affiliates and assignees” are added as additional insureds.”


But Ashlin what does all that mean?


Blah Blah Blah, buy an insurance policy. They want you to have a general liability policy that covers up to $1MM in damages if your products harm someone.


Why is Amazon doing this?


Time after time Amazon keeps getting sued for faulty goods and is being held liable for 3rd party sellers’ products. If they require you to have a policy and list them as additional insured then your insurance will help pay for the lawsuit, not just Amazon.


Just take a look at these pieces from The Washington Post, Frontline, and CNBC and you’ll quickly understand the urgency for the mandate.


How do you get this insurance?


You need an agent who KNOWS what you know! Who is NOT a seller but know what’s sellers do! You need Ashlin Hadden Insurance. Her agency focuses on eCommerce sellers. She has spoken and attended over 40 conferences, is in the Facebook groups, and has even walked the Canton Fair with clients to see how they were sourcing. They are your one-stop-shop for eCommerce insurance... Learn More

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