Insurance requirements Amazon

DuSpast · #1 08-11-2021

August 10, 2021
Expanding A-to-z Guarantee to protect customers and sellers (US)
Over the years, we have worked together to earn customers’ trust by providing them with a great experience – offering the products they want, ensuring great prices, and providing fast and convenient delivery. The A-to-z Guarantee, which covers the timely delivery and condition of products sold in our store, has also been important to our mutual growth by providing customers with peace of mind when purchasing from sellers.
Today, we are expanding our A-to-z Guarantee to protect both customers and sellers in the unlikely event a defective product sold through Amazon.com causes property damage or personal injury. Beginning September 1, 2021, we will:
1 Offer an efficient process for both parties to resolve such claims.
2 Pay valid claims less than $1,000 and not seek reimbursement from sellers who have valid insurance.
3 Make it easier for sellers to buy insurance at competitive rates through Amazon Insurance Accelerator.

With these innovations, we are enabling customers to shop even more confidently in our store, driving more opportunity for you to continue to grow your business.

Amazon expands A-to-z Guarantee to efficiently resolve defective product claims for customers and sellers
Previously, in the rare case that a customer believed a defective product caused property damage or personal injury, customers approached sellers directly to try to resolve their claim. We have heard from both sellers and customers that the experience can sometimes be frustrating. We have consulted with insurance experts and built a new process to facilitate resolution in a more efficient manner for all parties involved.

Beginning September 1, 2021, for products sold through Amazon.com, Amazon will facilitate resolution of property damage and personal injury claims between the customer, the seller, and their insurance provider. Customers can contact Amazon Customer Service and we will notify the seller and help them address the claim. If a seller does not respond to a claim, Amazon will step in to directly address the immediate customer concern, bear the cost ourselves, and separately pursue the seller. If a seller rejects a claim we believe is valid, Amazon may also step in to address the customer concern; in these cases, sellers will continue to have the opportunity to defend their product against the claim. This streamlined process will save time, money, and effort for both customers and sellers. By standing behind customers and the products in our store, regardless of who sells them, we will help customers feel more confident shopping at Amazon and from sellers like you.

When a customer files a claim, Amazon will combine our advanced fraud and abuse detection systems with external, independent insurance fraud experts to analyze the claim. We will present valid claims to sellers and deny unsubstantiated, frivolous, or abusive claims. By doing this work on behalf of sellers, we save you from having to investigate these claims on your own.

You can read about the process in full here.

Amazon pays for claims under $1,000, saving sellers time and money
Amazon will resolve and pay for valid property damage and personal injury claims against sellers under $1,000 as a concession to customers. Claims under $1,000 account for more than 80% of cases in our store, and Amazon will bear these costs and not seek reimbursement from sellers who abide by our policies and hold valid insurance. These concessions will not affect your order defect rate, and you will be kept informed at every step so you can continue to ensure your products are safe.

Amazon updates seller insurance requirements and launches Insurance Accelerator, making it easier and more affordable for sellers to protect their businesses

Amazon has a long-standing requirement that sellers obtain product liability insurance and name Amazon as an additional insured once they reach $10,000 in sales for three consecutive months on Amazon. We are updating this requirement and effective September 1, 2021, our Business Solutions Agreement will require sellers to obtain product liability insurance and name Amazon as an additional insured once you reach $10,000 in sales in one month on Amazon.com.

If you are a new seller or are an existing seller looking for a new policy, we have worked with an insurance broker to create Amazon Insurance Accelerator, a network of vetted insurance providers to help you easily and affordably secure liability insurance. These insurers can evaluate and if appropriate, offer liability insurance at competitive rates to qualifying sellers. We will continue to expand Amazon Insurance Accelerator to include more providers over time. You can learn more and contact the providers here. If you already have insurance, please confirm it is up-to-date and saved on the Business Insurance page in Seller Central.

Amazon stands behind you and the hundreds of millions of products our sellers offer customers. With the expanded A-to-z Guarantee, we’re proud to continue to partner with you to provide customers with peace of mind every time they shop in our store and to help you increase sales and grow your businesses.

There are a lot of questions at the moment.

- What about non US Sellers they need to upload there proof of insurance (And Amazon needs to somehow verify it)
- Death of Stealth? Because Insurance needs to match the legal entity at Amazon
- It will be required for $10k for each month or three months in a row with a total of $10k?
- Crazy that they give you just a window of 3 weeks for this.

phaz0rz · #2 08-11-2021

Jeez what a headache.

agent006140 · #3 08-11-2021

Amazon has a long-standing requirement that sellers obtain product liability insurance and name Amazon as an additional insured once they reach $10,000 in sales for three consecutive months on Amazon. We are updating this requirement and effective September 1, 2021, our Business Solutions Agreement will require sellers to obtain product liability insurance and name Amazon as an additional insured once you reach $10,000 in sales in one month on Amazon.com.
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It sounds like if you reach $10k in one month,you need to buy insurance.

agent006140 · #4 08-11-2021

wonder how much is premium for such insurance?
is it an annual policy >do you pay premium month by month?

agent006140 · #5 08-11-2021

Quote:

Originally Posted by phaz0rz

Jeez what a headache.

There are so many categories of merchandise for sale,books,clothes,shoes,rags,mousepads?ropes,thre ads?ribbons?electroncis,pills,food?
The underwrite cannot have one flat premium for all.

Canadianleaf · #6 08-13-2021

Lol what a nightmare. Read the seller forums about the auto rejections and amazon threatening to close accounts. I dont know where to begin. Im sick of amazon. I wonder what will happen after sept 1 if you dont update or provide insurance, will it flag your performance or deactivate your account? No idea.

rsot · #7 08-13-2021

Quote:

Originally Posted by agent006140

wonder how much is premium for such insurance?
is it an annual policy >do you pay premium month by month?

Did you end up trying it out?

DuSpast · #8 08-13-2021

I guess first you need to trigger to go over the $10k on sales right?
I think that for such a big "update" they only give the sellers like 3 weeks to do it. Like WTF!

As far as I know, there are some annual payments for the insurance.

I think also that Amazon is coming to an end sooner or later. With all the requirements etc. I dont think that it is not profitable for sellers to sell on this platform anymore. Because the seller service is the most **** of all time. If more sellers will turn there back on Amazon maybe they will do something. Without there 3P Sellers Amazon would be just another E Commerce platform with just one single price. If you want better prices I guess Amazon will not be the place to go to.

agent006140 · #9 08-13-2021

I think many big sellers do have insurance already.
you need to find a product liability insurance company

agent006140 · #10 08-13-2021

Many would not need insurance,I doubt small sellers selling books,dvds,mousepad,ink cartridge,envelopes would need insurance or exceed 10,000 a month

Canadianleaf · #11 08-13-2021

Heres the thing, the insurance requirment was never enforced, so whats there to say their going to enforce it this time?

agent006140 · #12 08-14-2021

AMZN will enforce ,just watch

jak · #13 08-19-2021

I agree, amazon is some kind of communist organisation that loves to control people and make people lifes a living hell.

Beautiful · #14 08-21-2021

gonna have to wait and see how it rolls out, how its verified, how its enforced etc

but it looks like as long as you have multiple accounts generating below 10K you aren't required to add anything

agent006140 · #15 08-21-2021

then what about Ebay,someone sells some crappy stuff which blows up in the buyer face,if AMZN is liable,so would be Ebay or Etsy,

vahagn85 · #16 10-03-2021

Looks like no one purchased an insurance? If anyone with stealth account purchased and succeeded - PLEASE let us know what company did you use and what`s the premium?

neeshree · #17 12-04-2021

Any update on this topic? I am curious to hear if any stealth accounts are able to go over 10k a month successfully.

rsot · #18 12-05-2021

Quote:

Originally Posted by neeshree

Any update on this topic? I am curious to hear if any stealth accounts are able to go over 10k a month successfully.

Belated welcome to the forum - all the best as you master ghost

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DuSpast · #19 12-06-2021

Canadianleaf · #20 01-27-2022

Really annoys me being forced to have this insurance as if I have enough subscription services anchored around my neck, then the pro seller subscription. Im hoping to see some datapoints on what happens if the amazon seller cancels the insurance and if amazon does anything or is contacted by the insurance agency.

Im gonna be taking a break from this, and will be downgrading my account to individual seller instead of pro most likley, at which point I will try this as well. Wonder what will happen.

Ando · #21 03-02-2022

Hey everyone, any update on the Insurance requirements? Just got hit with the request from Amazon. Trying to figure out how to get out of this one without risking the stealth store.

Thanks!

yungsc1005 · #22 03-08-2022

I got hit with the same request, asking me to provide Insurance Liability Coverage within 30 days. WTF? Are you serious???

However it doesn't say they will suspend your account if you dont provide it. So I dunno....