Recently, it has been reported that some Amazon sellers have been rejected and failed to pass the normal submission. At first, they thought that the insurance sold by the intermediary was not good, or there was a problem with the insurance they sold. Later, it was discovered that it was because of the liability deductible in the insurance policy.
Insurance contains a liability deductible, which means that in the event of an insurance accident, if the loss is within the specified liability deductible, the insured will be responsible for it, and the insurance company is not responsible for compensation. , the insurance company will be responsible for the claims. In this case, the insurance company will save a lot of small claims, so that the price of policies with liability deductibles will be lower than those without liability deductibles. Therefore, some Sellers who want to save will choose such a policy.
However, one of the more important points in Amazon's US commercial liability insurance plan policy is that if the seller's sales do not exceed 1 million US dollars, if the seller purchases a policy with a liability deductible, it will not be approved at the time of review. Only those with more than 1 million US dollars Only sellers who sell sales can continue their previous insurance with a liability deductible.
Image source: Amazon Seller Forum
Today, Amazon requires sellers to purchase insurance without liability deductibles, and no longer accepts insurance with liability deductibles. In the subsequent claims disputes, even if there is only a loss of 1 yuan, the insurance company will compensate, which is a great guarantee. Platform and seller risk.
Previously, Amazon sellers submitted an insurance policy with a liability deductible, and the set deductible was $10,000. The insurance company began to pay for losses exceeding $10,000. However, it was reported before that some small sellers with small sales, when they suffered a claim, had to pay less than 10,000 US dollars in compensation, so they ran away and gave up the store, and finally the Amazon platform paid the bill. There is a high probability that Amazon This adjustment may be based on this. After all, sellers with sales of more than $1 million are reluctant to give up their accounts, and sellers with low sales will not abandon their accounts if they buy a policy with no liability deductible.
The changed Amazon U.S. business liability insurance program policy will take effect today, June 27, 2022. Although the policy with no liability deductible improves the security of the platform and sellers, for small and medium-sized sellers, it once again increases the cost of sales.