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Amazon commercial liability insurance imposed
 

I saw this on ChannelX. Anyone been asked to prove this yet?

Amazon are writing to sellers to inform them that under section 8 of the Amazon Services Business Solutions Agreement, you must obtain and maintain commercial liability insurance within 30 days after your gross proceeds from your transactions exceed the following applicable insurance threshold during any month (or if otherwise requested by Amazon) and add Amazon as additional insured:

£4,000 if the Amazon Site is the UK Amazon Site
€5,000 if the Amazon Site is the DE Amazon Site, the FR Amazon Site, the IT Amazon Site, the ES Amazon Site, the BE Amazon Site or the NL Amazon Site.
kr 50,000 if the Amazon Site is the SE Amazon Site
PLN 22,500 if the Amazon Site is the PL Amazon Site
This appears to be a recent change – previously it was if your products sold through FBA exceeded Amazon’s insurance threshold, now it applies to all products including Merchant fulfilled orders. This change means that sellers who fulfil orders outside of FBA will only now start to receive demands to put insurance in place.

Effective May 29, 2024, we are updating the Amazon Services Europe Business Solutions Agreement. We are updating Clause 8 (Insurance) so that any sales made through Amazon EU stores in any one-month period will be taken into consideration when determining if the Insurance Threshold has been met.

– Changes to the Amazon Services Europe Business Solutions Agreement
It’s going to be tricky to shop around due to the stipulation that you add Amazon as additional insured. Plus there’s a requirement for your insurance provider to give Amazon at least 30 days’ notice of cancellation, modification or non-renewal. If you (in all likelihood) do need a new commercial liability insurance policy, Amazon have helpfully identified a choice of one insurance broker that can help you secure liability insurance, called Simply Business.

For US sellers, Amazon say that if you already have a valid commercial liability insurance policy that you bought in the US and you sell in the EU or UK stores, be sure to check with your insurance provider to verify that your policy covers claims made in the EU and the UK.

When you obtain coverage for the products you sell, make sure that your policy fulfills Amazon’s insurance policy requirements. For more information, go to Commercial Liability Insurance Policy.

Re: Amazon commercial liability insurance imposed
 

what is the limit for US sellers?

Re: Amazon commercial liability insurance imposed
 

Maybe you can find it and post it? You're good with finance info and sources based on our posts

Re: Amazon commercial liability insurance imposed
 

I've been asked a few times since 2 years ago.

Re: Amazon commercial liability insurance imposed
 

Yeah, I have been asked at least 20-40 times over all my accounts, and they have never taken any action and I haven't ever gotten any insurance lol

Re: Amazon commercial liability insurance imposed
 

I'm not sure if this is a European thing, as all the marketplaces they mention are in Europe.

Re: Amazon commercial liability insurance imposed
 

All the sites mentioned are in Europe because its a change to the 'Amazon Services Europe Business Solutions Agreement', the US site has a different insurance requirement, required for sellers with over $10000 in sale a month I think.

Amazons suggested broker Simply Business will give you quotes from a few companies, you can find a few more with Google.

They're emailed me a few times to remind me about the change, I'll get round to buying it when they require me to upload the insurance certificate.

Re: Amazon commercial liability insurance imposed
 

Your account isn't stealth?

Re: Amazon commercial liability insurance imposed
 

I do less than $10k /mo and they still asked

Re: Amazon commercial liability insurance imposed
 

The US agreement says:

"you must obtain and maintain commercial liability insurance within 30 days after exceeding USD 10,000 in gross proceeds in sales in one month on Amazon.com, or if otherwise requested by us"

Re: Amazon commercial liability insurance imposed
 

I doubt the insurance company cares what name is on the policy as long as you pay up front rather than by instalments

I wouldn't suggest making a claim though if it is in a stealth name.

Re: Amazon commercial liability insurance imposed
 

Of course they will. They run credit checks when you take out insurance policies.

Re: Amazon commercial liability insurance imposed
 

It doesn't matter what their "policy"says.

They'll ask for it whenever they want to. They don't play by the rules themselves

Re: Amazon commercial liability insurance imposed
 

It actually says or when we ask for it as well. We know how they work!

Re: Amazon commercial liability insurance imposed
 

Insurance companies are very good at denying claims,I would not give them any excuse .

Re: Amazon commercial liability insurance imposed
 

There was no credit search when getting the quotes, if they ever make me get the insurance I'll let you know if they run a search then.

Re: Amazon commercial liability insurance imposed
 

I guarantee they will run a credit check. A soft one

Re: Amazon commercial liability insurance imposed
 

I kind of get where Amazon are going with his, it seems to me that regulators want to hold them responsible for issues arising via third party sellers.

https://www.cnbc.com/2024/07/30/cpsc...rketplace.html

That said, it is going to be a nightmare for both sides, sellers are commenting that many insurers (even the one Amazon recommends) wont offer cover in many circumstances and many wont add Amazon as an interested party.

How Amazon intend to check the suitability of any policy offered is surely a thankless task and monitoring that it remains in place just as difficult.

Wishful thinking but I'd like to think they'll take the National Insurance Number approach. "Just upload something which appears suitable and that's our job done, we can't be expected nor are required to check its validity"

But its Amazon, so they'll come up with an approach which will surely cost many sellers their accounts.

Re: Amazon commercial liability insurance imposed
 

No,AMZN will be involved,individual sellers do not have deep pocket but AMZN does.
The motorcyclist killed in a car accident when the TSLA driver behind him was texting and relying on auto pilot to drive his car ,his family is taking both the driver and TSLA to court,guess who has deep pocket?

Re: Amazon commercial liability insurance imposed
 

Not related to Az sales? hmm

Re: Amazon commercial liability insurance imposed
 

Yes, the US and Canada is 10K per month or upon request.

US you have to upload. Canada just last month came to fruition. BUT, Canada does not have a spot to upload a copy of policy. When I questioned AZ about it, they said only need to show if a claim is issued against one of our products.

PhD

Re: Amazon commercial liability insurance imposed
 

Yup, exactly.

Can't trust people in power.