Recently, many sellers in the United States have reported that the newly purchased insurance has not been reviewed. What is going on?
In fact, the reason is that Amazon has adjusted its insurance policy. Before, Amazon only stipulated that if your total sales revenue on Amazon exceeded $10,000 in 1 month , you must purchase and renew commercial liability insurance within 30 days. There is no limit to whether there is a deductible. Both options are available.
And now, Amazon has new requirements for commercial liability insurance policies:
①For stores with annual sales of less than 1 million US dollars, you should choose the plan without deductible when applying for insurance
②For stores with annual sales of USD 1 million and above, you can choose a plan with no deductible or a plan with a deductible of USD 10,000 when applying for insurance
Business Liability Insurance Policy
What is a "deductible policy"?
For example, let's say a seller buys a policy from an insurance company with a coverage of $1 million. The policy states that ( $ 100,000 ) is a deductible.
Deductible means no compensation. Suppose Seller A makes electronic products, and after selling them to consumers, the products spontaneously ignite one day, causing the house to catch fire. The consumer filed a claim and was awarded $ 1 million in damages. Under a policy with a 10% deductible limit, the insurance company only needs to pay 90% , or 900,000 yuan. So, who will pay for the remaining $ 100,000 ? It is impossible for Amazon to compensate, so it may be difficult for sellers to exempt from this responsibility.
Why doesn't Amazon accept it?
Amazon itself requires sellers to buy commercial insurance to prevent the seller from running away from the product. In case the seller runs away, the insurance company can pay. The existence of the deductible means that in some cases (the amount of compensation does not exceed the deductible), even if the seller runs away, the insurance company will not pay, and in the end, only Amazon bears everything. So from a policy logic, it's okay for Amazon to ban the deductible.
For sellers with annual sales of more than 1 million US dollars, insurance products with deductibles can be purchased. Because of the higher sales of these sellers, the probability of product accidents is relatively high. If you buy insurance without deductibles, the increase in premiums will definitely be much higher than that of small sellers, and the sales of these sellers are so high. It is not easy to run away, and it is more humane for Amazon to release the insurance terms for this part of sellers.
What's the impact?
So how does this change affect sellers?
①The price is different. The price of the plan without deductible is more expensive than that with deductible
②For stores with annual sales of less than 1 million US dollars, Amazon no longer recognizes plans with deductibles and will not be able to pass the review
Amazon sales of more than $1 million can list the deductible on the insurance certificate. If the sales are less than $ 1 million, you must upload a policy with no deductible . A policy without a deductible costs more than a policy with a deductible .
Finally, Xiaobian recommends Dadi Insurance and Ping An Insurance. If you need it, you can contact Xiaobian for a quotation.