Why do Amazon sellers need insurance?
Business insurance helps Amazon sellers recover from costly accidents, such as a fire that destroys your storage unit inventory. Some policies, like a general liability policy, are required once you sell a certain amount.
Find the right coverage
Insureon helps Amazon sellers find policies that match their unique risks and requirements. Fill out our easy online application to compare quotes from top-rated insurance providers.
Got questions? Our insurance agents will help you every step of the way.
What types of business insurance do Amazon sellers need?
These policies cover the most common risks of selling on Amazon.
Business owner's policy
A business owner's policy, or BOP, is a cost-effective way for Amazon sellers to buy general liability insurance and commercial property insurance together.
- Bodily injury and property damage lawsuits
- Inventory damage or loss
- Business interruption coverage
General liability insurance
This policy covers common third-party lawsuits, such as slip-and-fall accidents. It usually includes product liability insurance for financial protection against harm caused by your products.
- Product liability insurance
- Personal injuries
- Advertising injuries
Workers’ compensation insurance
Most states require workers' comp for Amazon retailers that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Employer's liability insurance
Cyber insurance
This policy helps Amazon sellers survive data breaches and cyberattacks. It's recommended for any shop that handles credit card numbers or other sensitive information.
- Customer notification expenses
- Fraud monitoring services
- Cyber extortion demands
Commercial umbrella insurance
Umbrella insurance boosts coverage on an Amazon seller's general liability, employer’s liability, or commercial auto insurance policy once the limit is reached on a claim.
- Customer injury lawsuits
- Property damage lawsuits
- Employee injury lawsuits
Commercial auto insurance
Commercial auto liability insurance is usually required for business-owned vehicles. This policy covers accidents involving an Amazon seller's delivery van or other vehicle.
- Physical damage and collision coverage
- Injuries caused to another person
- Repairs due to vandalism or storms
How much does Amazon seller insurance cost?
Amazon sellers who work alone will pay less for insurance than an e-commerce store with a dozen employees.
Factors that affect the cost of insurance include:
- Retail products and services offered
- Business equipment and property
- Business income and size
- Type of insurance purchased
- Policy limits and deductibles
What are Amazon seller insurance requirements?
Amazon requires that businesses selling through their platform meet a number of insurance requirements in order to comply with the Amazon Services Business Solutions Agreement.
Specifically, Amazon requires business owners to:
- Maintain liability insurance coverage. Business insurance is required for Amazon Pro Merchants and sellers with gross proceeds of over $10,000 during any month from sales on its platform. The minimum requirements are $1 million per-occurrence and $1 million aggregate limits of commercial general liability insurance and product liability insurance. General liability insurance often includes product liability insurance, or you can add it as an endorsement.
- Name Amazon as an additional insured. Your insurance policies must name Amazon and its assignees as additional insureds to extend your coverage to include them.
- Mail proof of insurance. Sellers may need to mail a certificate of insurance to Amazon to prove that they carry the minimum liability coverage.
Note that insurance requirements may vary by depending on business type and products sold. Some sellers may need commercial umbrella insurance (or excess liability insurance) to boost their liability coverage limits.
How do I get Amazon seller insurance?
Sales fluctuate, and you may suddenly find you've hit the threshold where you need insurance coverage quickly.
Amazon sellers can get insured quickly with Insureon if you have your business information on hand. Our application will ask for basic facts about your small business, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:
- Complete a free online application
- Compare insurance quotes and choose policies
- Pay for your policy and download a certificate
Insureon's licensed agents work with top-rated U.S. carriers to find coverage that fulfills Amazon's insurance requirements, whether you're an independent contractor or hire employees. Get insured today and find peace of mind knowing your business can survive the unexpected.
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