Amazon Prime Day is a huge event for consumers, but it’s also a big day for Amazon retailers too. On Prime Days, sellers hav a big opportunity to increase their sales and get more exposure for their products. Since Amazon is a hot topic right now, we want to remind our Canadian retailers of the importance of being insured…properly and in accordance with Amazon requirements.
Amazon.com has a requirement that any seller who reached a revenue threshold of $10,000 in one month must provide proof of liability insurance within 30 days.
Here is a brief overview of the insurance requirements for Amazon sellers:
- You will need commercial general liability insurance.
- You will need a $2 million of commercial general liability insurance.
- The policy must cover all sales.
- Your insured name/name insured must match the legal entity.
- Your insurance provider must have a good financial rating. ALIGNED only works with licensed Canadian insurance companies that carry an A- or better AM Best rating.
- The policy must be bound and in place in order to meet Amazon’s requirements.
- If you make any changes, Amazon must be aware of them.
Here are the some of the most popular product categories of Amazin retailers who buy insurance:
- Appliances
- Arts and crafts
- bath bombs and soaps
- Books and stationery
- Candles and supplies
- Clothing and accessories
- Collectibles and memorabilia
- Electronics and accessories
- fitness supplies
- Food and beverage
- Furniture and accessories
- Gifts and party supplies
- Hair and beauty products
- Home and garden
- music supplies and instruments
- Pet products
- Sports and outdoors
- Video and music
ALIGNED Insurance has hundreds of Amazon retailers as clients and works with numerous insurers to not only do the shopping around for you, but it also ensures we are able to secure insurance for almost any product or product category.
How Much Is Insurance For Amazon Retailers?
Annual premiums for Amazon comlpiant Amazon retail insurance is dependent upon many factors including, but not limited to:
- Amount of sales in specific categories as various products have different rates
- Where the product is being sold. i.e. % of sales to customers in Canada, US and the rest of the world.
- Historic claims history
- Source of products being sold
- Other
Annual premiums start as low as $500 for Canada-only sales and $1000 for any USA sales, but $2,500-$15,000 per year aren’t uncommon depending on numerous factors. If you have questions about Amazon retailer insurance in Canada, get in touch with us. An ALIGNED Advocate who specializes in Amazon insurance will be happy to help.
