The Best Insurance for Amazon Sellers: Product Liability Insurance

As an Amazon seller, you appreciate that Amazon is top of mind with your consumers and is the world’s largest online retailer company by market capitalization. Representing 35.7% of all Top 500 sales in North America, there’s no doubt that your choice of Amazon for your retail sales is a strategic alignment for your business. 

When a third-party platform is an essential tool for your business, it’s important that you keep current with all elements of your seller’s agreement.  

As of September 1, 2021, all Amazon retailers that sell more than $10,000 in one month are required to carry product liability insurance and name Amazon as an additional insured.

We know it’s important that, as an Amazon retailer, your business has the right product liability coverage in place to align with your Amazon agreement requirements and protect your online business against liability and litigation from your customers.

This is specifically why we’ve created a simple and easy-to-use to use online form that allows you to start your Amazon Retailer Product Liability Insurance quote with us right now.

With so many people relying on Amazon retailers to deliver their items on time and in good quality, there’s a lot of responsibility on the shoulders of the sellers. For example, let’s say:

  1. Customers buy large quantities of faulty air filters from an Amazon shop.
  2. The faulty filters cause illness because they didn’t properly remove dirt and other harmful contaminants from the air.
  3. A class-action suit is raised.
  4. With product liability insurance in place, the Amazon seller has financial protection against fees arising from legal disputes, settlements, medical bills and property damage.

With insurance requirements and increased product liability risk, purchasing Amazon Retailer Product Liability Insurance that aligns with your specific business risks is essential.

Increased Insurance Coverage Needs For All Amazon Retailers

According to Amazon’s Seller Insurance Requirements, all pro merchants that use the Amazon platform to sell products must show a Certificate of Insurance (COI)/proof of Commercial General Liability Insurance. Any business should be equipped with Commercial General Liability Insurance to protect themselves against third-party claims of bodily injury and property damage resulting from their products, advertising, and business operations.

Amazon has specific Amazon Retailer Liability Insurance requirements and thresholds that their online sellers must follow to ensure their business is properly covered against litigation and liability risks, regardless of whether the seller is based in Canada or the United States.

Amazon is also always reviewing and revising its business policies and insurance regulations to ensure improved protection and processes for its sellers and buyers. As a result, Amazon has changed their Business Solutions Agreement.

As of September 1, 2021, all Amazon online retailers are required to carry product liability insurance and name Amazon as an additional insured once the seller reaches $10,000 in monthly sales on the Amazon platform.

The Amazon Retailer Product Liability Insurance requirement for sellers is designed to ensure that businesses are protected against liability, litigation, and other claims arising from injuries and property damage to a third party.

Why do you need Amazon Retailers Product Liability Insurance?

As with any retailer, there are always risks that your business or customers face when transacting with your store. Regardless of how safe you claim your products are or how tested they are against certain risks, there are always possibilities of something going wrong. You could have a defective or damaged item in your online store that causes injury or property damage to your customers.

If consumers buy your products and suffer personal injury or property damage, they could file a claim against your Amazon shop or even sue your shop for the damages caused. These liability claims or litigation processes can be costly, and without proper product liability insurance, the repercussions and damages might be difficult for your online business to recover from.

When you carry insurance, like Amazon Retailer Product Liability Insurance, you can ensure that your business is protected against liability and litigation risks.

How can Amazon sellers get Amazon Retailer Product Liability Insurance?

Amazon has a long-standing requirement for sellers to obtain product liability insurance and name Amazon as an additional insured once they reach the required threshold.

If you already have product liability insurance from an insurance provider and your product liability insurance policy meets Amazon’s new requirements under their Business Solutions Agreement, all you have to do is make sure it’s up-to-date and recorded on the Business Insurance page in Amazon’s Seller Central. It ensures Amazon knows you have met the product liability insurance requirements.

Can I Choose My Own Insurance Provider To Meet Amazon’s Insurance Requirements?

Yes. As long as you purchase product liability insurance coverage that meets the requirements set out in the Amazon Business Solutions Agreement, you can purchase coverage from any insurance provider.

ALIGNED will help you find Amazon Product Liability Insurance for Amazon sellers that protects against the risks and costs of third-party claims and litigation.

Are You Looking for the Best Amazon Seller Insurance?

Whether you are a new Amazon online seller or simply looking for better business insurance, we can help you. We support small and large online retailers with product liability insurance that protects their business against claims and litigation and meets Amazon’s product liability insurance requirements.

Find the Right Amazon Seller Product Liability Insurance from ALIGNED

ALIGNED works with Canada’s top insurance companies to provide custom insurance packages at affordable prices. Click Here To Get A Quote or contact one of our business insurance experts for information or with any questions you may have.

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