Effective September 1, 2021, Amazon's Business Solutions Agreement requires sellers to have gross sales revenue of more than $10,000 in any month in the Amazon marketplace , or in other cases as required by Amazon, to have commercial liability insurance within 30 days and Renew and designate Amazon as an additional insured .
Currently, Amazon only enforces this requirement on the US site, and the insurance purchased should cover all products listed for sale on the Amazon marketplace.
If sellers need to purchase this insurance, they can visit the Amazon Compliance Solutions – Amazon Insurance Accelerator page to choose. After purchase, proof of insurance will be sent to the seller's email address, which may take up to 24 hours from the time of purchase.
Of course, sellers can also purchase insurance from other insurance providers, but they should ensure that the insurance purchased meets the Amazon insurance requirements.
Some sellers worry about the authenticity of the policy after successfully purchasing insurance, so they can verify in two ways:
1. Contact the insurance company directly by phone to verify whether the policy is effective, and request the insurance company to issue an insurance certificate;
2. Some insurance companies have a policy verification official website, visit the official website and enter the policy number to verify whether your policy is valid.
From June 27th, Amazon's U.S. Business Liability Insurance Plan policy will be updated!
Amazon's US station issued an announcement saying that starting June 27, 2022, Amazon will update Amazon's US business liability insurance plan policy. The following is the content of the announcement:
Effective June 27, 2022, Amazon's U.S. business liability insurance plan policy will be updated with the following changes:
A policy may include a deductible if (i) the seller had more than $1 million in sales in the past 12 months and (ii) the deductible is listed on the certificate of insurance;
For a sole proprietorship, the name of the insured may match your legal entity name or the name you publicly use to identify your business ("Trade Name", "Business" or "DBA").
Go to the Business Insurance Frequently Asked Questions section for further guidance on how to obtain business liability insurance.
It can be seen that this change is mainly reflected in the requirement for the deductible, which refers to the amount waived by the insurance company. If a claim is triggered, the insurance company will only pay out the amount in excess of the deductible.
That is to say, if the annual sales volume filled in by the seller when purchasing the insurance is less than 1 million US dollars, it is not allowed to insure products with deductibles, otherwise the insurance policy will be rejected or even affect the normal operation of the store.
Commercial liability insurance is another major trend in Amazon's compliance. At present, Amazon only implements this requirement in the United States, and other sites may join in accordingly. For stores that have reached the standard or stores that are about to meet the standard, the seller is best to buy as soon as possible and buy in a reasonable and compliant manner.
As for the impact of not taking out insurance, Amazon responded like this:
If you have reached the threshold for purchasing business liability insurance, and if Amazon finds that you have not purchased this insurance within the applicable claim period, or have not promptly submitted proof of qualified insurance, Amazon may take steps, such as restricting you from selling certain categories of products , or even suspend your account etc. until you provide proof of insurance. Please deal with it in time, otherwise it will affect the normal use of your account.