How to Protect Your Amazon Business

How to Protect Your Amazon Business

When many sellers initially begin their Amazon business(myself included), then they frequently don’t recognize that if you are a Pro Merchant Amazon may ask that you get amazon product liability insurance.


This may seem intimidating to some, however, e-commerce insurance is not as complex (or costly ) because you may think. If you are selling on Amazon, then you have to take care of it just like any other business and using the correct insurance to protect yourself and your business part.


If you are like most new or skilled vendors, you likely did not understand that Amazon, sooner or later, needs you to get liability insurance. You could be thinking, “Well when anything else goes wrong Amazon gets my back?” Wrong. Amazon doesn’t need to have the responsibility and it’s all your decision, as a business owner and Amazon vendor, to have the correct insurance.

The cause of this principle is quite simple: 

To safeguard yourself/your business’s assets and ensure any financial obligations caused by accidents, accidents, or litigations.


And as the odds of a client depriving you will below, it is far much better to err on the side of care — and then stick to Amazon’s guidelines.


Just take the instance of a few of Amazon for faulty solar panel eyeglasses for instance. The few claims the glasses that they purchased on Amazon didn’t guard their eyes throughout the solar panel and destroyed their eyesight.


As a vendor, you might not believe such an easy product would hurt anybody, but accidents don’t occur. It is most likely the last thing in mind when purchasing goods on Amazon, however better to shield yourself from unexpected incidents than not to have insurance in any way.


There’s some confusion regarding Amazon’s insurance requirements for their own vendors. When presented with the choice to make an Amazon pro vendor accounts, enrolling in commercial general liability insurance is not evident in the stipulations.


Sellers become concerned about Amazon seller insurance since most suppose that e-commerce insurance is more complex and pricey. A majority of insurance businesses take commercial general liability insurance coverage that is cheap for the coverage it gives.

Who Wants Amazon Seller Insurance?

While Amazon needs its expert sellers to own commercial general liability insurance, they don’t need it for everyone. If you’re an Amazon vendor that retains a single vendor account, you aren’t required to buy this type of insurance.


For Amazon pro sellers which don’t reach the insurance policy threshold level then you’re also not needed to get such insurance.  But if you’re only beginning on Amazon or don’t earn the $10k a month, then you might still wish to contemplate obtaining FBA insurance. As soon as you reach the 10k threshold for 3 weeks, then you’re required to get insurance.


During the time you’re searching for the ideal insurance company to get a policy out of; inquire about incorporating extra riders/liability policies. Check if they’ve got an Amazon suspension insurance coverage or internet sellers policy that will cover you in the event you wind up with your Amazon vendor account frozen.

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