What is Amazon Product Liability Insurance? Amazon Product Liability Insurance Review, Features

When operating on Amazon there is a requirement to purchase Amazon liability insurance, if you are selling on Amazon you need to treat it like any other business and have the proper insurance in place to protect yourself and the business you are a part of.

Require

Sellers are required to purchase and maintain at least $1,000,000 of commercial general insurance, additional liability insurance, or excess liability insurance.

Q&A:

Q: Which sellers need to purchase Amazon liability insurance?

A: According to the requirements of the sales agreement with Amazon, sellers who have received an email notification from Amazon requiring them to purchase liability insurance within 30 days after their total sales reach US$10,000 for three consecutive months.

Q: How much does it cost for sellers to purchase this insurance?

A: Generally speaking, the premium levels from low to high are home textiles (photo frames, mirrors, etc.) < general non-high-risk furniture & lamps (excluding halogen lamps and Christmas decorative lights) < high-risk furniture (high stools, baby furniture, folding furniture, lift chairs, etc.) = parasols, bathroom products < electric fireplaces, auto parts, etc.

Q: What information does the seller need to fill out when purchasing this insurance?

A: It is shown in the Amazon Supplier Product Liability Insurance Group Insurance Form.

1. Sales product details (required)

2. Estimated sales in the next year (required)

3. Sales area (global scope including the United States and Canada, if included, what is the percentage) (required) Quality certificate (if any, please specify UL/ETL/CE/ROHS, etc.)

4. How many years have you been selling? Have any accidents occurred?

Q: How to purchase product liability insurance?

A: 1. Website for purchasing insurance

https://amazonins.com/

www.aig.com

www.chubb.com

www.starrchina.com

www.coverwallet.com

2. Solutions through normal channels

a: Check whether you have purchased the ISO clause of Commercial General Liability (CGL) instead of the public liability insurance/product liability insurance of domestic clause, because the latter two cannot cover the completed operation liability stipulated in the clauses below. If you have this policy, please contact your insurance company to add Amazon as a co-insured.

b: If option a doesn't work, I suggest you buy a CGL policy from China. Based on my experience with auto parts clients, the premiums from Chinese insurance companies may be lower than Chubb, AIG or Starr, which Amazon recommends. This is because the latter three foreign insurance companies have clear preferences for underwriting products. Note: Amazon only recommends three foreign insurance companies, and does not force you to buy from these three. But if you buy from Chinese insurance companies, you must read the terms carefully.

(The above content comes from the user @JaniceY of Zhiwubuyan)

Q: Any suggestions on purchasing Amazon liability insurance?

A: 1. Insurance company selection

• Safety is the first priority. Don’t just Google or trust any strangers just to save money. Go to the National Insurance Association and check the company name to see if there is any insurance record. If not, it is likely to be a shell company or a shell website.
• US Insurance Association: https://content.naic.org/cis_consumer_information.htm
• Select company: Search the keyword AMAZON INSURANCE, a lot of companies will appear, you can filter them by yourself

2. Insurance Type

• It is enough to choose the most basic product liability insurance. Any more will mean more expenses.
• For most products that are not powered or have potential safety hazards, it is basically impossible to use this insurance.

3. Premium price

It depends on the insurance company and the type of insurance. The most basic one is usually 300-600 USD/year.