Effective September 1, 2021 Amazon WILL enforce the long-standing insurance requirement that a Professional Seller Account with sales over $10,000/month will be required to have an insurance policy on file. This has always been in the Terms of Service Agreement, but never enforced by Amazon.
Included in the new requirement it states that the seller shall:
- Obtain a Commercial General Liability policy of at least $1,000,000
- That policy must also include Products Liability coverage (Products/Completed Operations)
- Be an Occurrence Form Policy
- Company Rating of A- or better
- Must cover all sales from products listed on Amazon
- Name Amazon.com Services LLC and its affiliates and assignees as additional insureds
- If a deductible is included it shall be less than $10,000
- The company name and address need to match exactly with the Seller Central Account
- Upload the COI (Certificate of Insurance) on the Seller Central account
With every requirement comes things you need to know
- Amazon will cover all claims of 1,000 or less for sellers with no penalty.
- This insurance will cover your business on all other platform you sell on including your own website.
- Sellers must comply by September 1, 2021.
- Sellers who are under the $10k per month threshold may still be required to get insurance.
- Amazon, MUST be included as an additional insured and notified within 30 days if the policy cancels or expires
How do you comply with such short notice?
By working with an established eCommerce insurance agency that understand both insurance and Amazon. WELL Insurance has been assisting eCommerce sellers with this insurance process and helping them stay compliant with the requirements, and will be happy to help assist you as well. We are an eCommerce insurance agency that was established in 2016 when we introduced the world’s first Amazon Suspension Insurance policy. Since 2016 we have gravitated to writing coverage for sellers for Commercial General Liability, Property/Inventory, Workers Compensation, Commercial Auto, and Ocean Marine Cargo coverage. WELL Insurance is a full service independent insurance agency, licensed in all 50 States. For more information visit www.well-insurance.com or call (270)200-4264