How much does Amazon seller insurance cost?

Amazon sellers and other retail businesses pay an average of $95 per month, or $1,136 per year, for a business owner’s policy.

A business owner's policy, or BOP, bundles general liability insurance coverage with commercial property insurance to cover both third-party risks and your business building and property. It typically costs less than purchasing each policy separately.

A BOP protects against customer injuries, vandalism, and physical damage to your Amazon business equipment and inventory. Because of its increased coverage and affordability, it’s the policy most often recommended by Insureon’s agents.

This is the average BOP for Amazon stores that buy from Insureon:

Insurance premium: $95 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

Small, low-risk Amazon sellers are often eligible for a business owner's policy.

Amazon store business owners may see higher costs if they choose to add endorsements to their policy. Insurance endorsements, such as business interruption insurance or equipment breakdown coverage, are often recommended to help avoid financial losses if a fire or power outage forces your business operations to cease for an extended period of time.

The cost of a business owner's policy is based on a number of factors, including the the type of products you sell and their associated risks, where you are located, your annual business revenue, the number of employees you have, the policy type and any exclusions, and your claims history.

For Amazon-based businesses and other retail companies, workers’ compensation insurance costs an average of $86 per month, or $1,036 per year.

This business insurance coverage helps pay for medical expenses if an employee is injured on the job. It also provides disability benefits while they're recovering and unable to work.

To comply with your state’s requirements and avoid penalties, Amazon sellers typically must purchase this coverage for their employees. It's also recommended for sole proprietors, as healthcare insurance plans can deny claims for medical bills when an injury or illness is related to your job.

Most policies include employer's liability insurance, which covers the cost of lawsuits related to employee injuries. There's usually no limit to how much a workers' comp policy can pay for employee benefits, though it depends on state laws.

The cost of workers' compensation insurance depends on several factors, including the number of employees you have, the level of risk involved with their jobs, and where you're located (if your state of operation has a large number of legal settlements, your costs may be increased).

You can save money on your workers' comp coverage by classifying your workers correctly and implementing a risk management plan to minimize employee injuries.

Learn how you can get the best coverage and insurance options for workers' compensation.

Amazon store business owners and other retail businesses pay an average of $57 per month, or $683 annually, for cyber insurance. You might also see this policy called cyber liability insurance or cybersecurity insurance.

Cyber insurance helps retail businesses recover financially after a data breach or cyberattack. It can help pay for customer notification costs, fraud monitoring services, and other costs necessitated by state data breach laws.

The cost of cyber insurance depends on the amount of personal information handled by your retail business, such as customer credit card numbers, along with the number of employees who can access that information.

Retail businesses, including Amazon store owners, pay an average cost of $59 per month, or $707 annually, for commercial umbrella insurance, which is available in $1 million increments.

This policy boosts the protection of your general liability insurance, commercial auto insurance, and employer's liability insurance. When an insurance claim exceeds the limits of the underlying policy, umbrella insurance kicks in to provide additional coverage.

While umbrella insurance extends coverage limits for a number of policies, it doesn't apply to professional liability insurance, also called errors and omissions insurance or malpractice insurance. These policies cover lawsuits over professional mistakes, including undelivered services. Your business can expand professional liability and E&O policy limits with excess liability insurance.

Amazon sellers may need this type of insurance if a landlord requires liability coverage in excess of $2 million.

For example, a landlord might require you to carry $3 million in general liability coverage before they'll sign a lease. In that case, you could carry $2 million in general liability insurance along with a $1 million umbrella policy to meet this requirement.

The cost of umbrella insurance depends on your potential risks and how much coverage you buy. You need to buy a certain amount of underlying coverage before you can purchase umbrella insurance.

Retail companies, including Amazon sellers, pay an average of $171 per month for commercial auto insurance, or $2,054 annually.

Most states require this coverage for vehicles owned by an Amazon seller. For personal, rented, and leased vehicles used by your business, look to hired and non-owned auto insurance (HNOA) instead.

A commercial auto policy provides financial protection in the event of an accident involving your business vehicle. It can help pay for property damage, medical costs, and defense costs.

The cost of commercial auto insurance depends on several factors, including the policy limits you choose, coverage options, the value of the vehicles, additional insureds, and the driving records of anyone permitted to drive.

Learn more about how to find affordable commercial auto insurance coverage.