Seller Insurance Requirements
If you are an FBA seller or have an existing Amazon Business Plan membership, you need to have liability insurance as well? This is just one of the many hidden gems you’ll find in the Participation Agreement.
We know most sellers haven’t studied the agreement verbatim, but it’s overlooked details like insurance that cause Amazon sellers to break TOS without even realizing they’re doing so. According to the agreement, any seller with a professional selling plan must be capable of providing proof of an active Commercial General Liability insurance policy.
Here are the standard seller insurance policies for anyone with a Professional Plan, straight from the Business Agreement:
A certificate of General Liability insurance, obtained at the seller’s expense, shall cover up to $1,000,000 per occurrence and in the aggregate and must include:
- Products liability
- Bodily injury, or personal injury
- Property damage
- Other requirements as stated in the Business Solutions agreement
- The insurance certificate must also add Amazon.com and any affiliates as insured parties
Seller with a professional selling plan must be able to provide proof of an existing insurance policy that covers no less than $1 million in product, bodily, personal, property damage and liability. The best part? All valid seller insurance policies also need to protect Amazon.com by naming them as an additional insured party.
What Qualifies as Amazon Seller Insurance?
So, we know that insurance is required now to sell on Amazon. But what happens if you’re asked to show proof of your seller insurance policy? Here is what you need to keep handy for seller performance, just in case.
Seller Insurance Certificate Requirements:
- Original and unaltered document
- Completed in full and signed
- Proof of Additional Insured Endorsement
- List all seller subsidiaries, including DBAs, covered under the policy
- Show complete insurance carrier names, as listed in the A.M. Best Property & Casualty Guide
Finally, sellers must plan to provide at least 30 days’ notice of cancellation, modification, or non-renewal of a current insurance policy if prompted by Amazon.