Selling on Amazon is no easy task. You have to know all of the Amazon requirements, have a product liability insurance policy, be committed and diligent, and more. Amazon requires that each seller has general liability and product liability included in the insurance policy. The good news is that Insurance Canopy’s Amazon Sellers Insurance includes both! Let’s dive in and explain the nitty gritty of what’s included in these policies.
General Liability Insurance protects your business in the cases of bodily harm and property damage. This can cover common slip-and-fall incidents, as well as if someone were to get injured due to your business operations.
There are six different items included in an Amazon Sellers General Liability Insurance policy:
General Aggregate Limit
This is the most the insurance company will pay in any one policy year for claims arising out of your Operations, Personal or Advertising Injury, Fire Damage and/or Medical Payments. Operations coverage is the basic coverage afforded for Bodily Injury and Property Damage (as explained above) due to your negligence. This limit for the Amazon Sellers Insurance is $2,000,000.
Products & Completed Operations Limit
This coverage provides protection for those who are contractors (completed operation) or manufacture or sell something (product). For example, if you sell them from your Amazon store and the light bulbs then cause damage to a customer, you could be sued because your product caused harm. This is a separate aggregate limit and claims of this nature will not diminish the General Aggregate Limit, but is still subject to the Per Occurrence Limit for each claim. This limit is also $2,000,000.
Personal & Advertising Injury Limit
Personal Injury refers to slander, libel, invasion of privacy, and defamation of character. Advertising injury refers to false advertising practices. This coverage provides protection from suits related to any of the above. For example, if a customer publicly says something about you or your product that is false, this part of the policy could have you covered. This is the most the policy will pay for any one claim of this nature. This limit for Amazon Sellers Insurance is $1,000,000
Each Occurrence Limit
This is the maximum that the policy will pay for any one claim arising out of your Operations, Personal or Advertising Injury or Products & Completed Operations. Each claim will reduce the General Aggregate Limit or in the case of Products & Completed Operations each claim will reduce that separate aggregate limit. The occurrence limit is $1,000,000.
This separate limit shows the coverage for fire damage. This coverage is for fire damage to buildings that are leased or rented by you. For example, if you accidently leave a coffee pot on in your office suite and it starts a fire, this coverage will pay for the repairs to your suite. Claims of this nature will be taken from your General Aggregate Limit. The fire damage, or premises rent to you limit is $300,000.
This limit shows the coverage for Medical Payments to third parties. This provides coverage for incidental medical payments to others if they incur minor injuries while on your premises. This coverage will pay regardless of who is responsible for the injury. Claims of this nature will diminish your General Aggregate Limit. The medical expense limit for Amazon Sellers Insurance is $5,000.
NOT ONLY DO YOU NEED TO BE INSURED AGAINST PROPERTY DAMAGE AND BODILY HARM, YOUR
Not only do you need to be insured against property damage and bodily harm, your products that you sell will also need insurance. Let’s say someone purchases an item from you that caused them harm, either from the product itself or misuse of the customer—you are the one that could be held liable for any medical expenses or legal fees on their behalf. Product Liability Insurance gives you peace of mind, knowing that your products are also insured.
An additional insured is a person or organization that is not automatically included as an insured under your policy, but you can add them to your policy at the request of the named insured. Additional insureds are added onto a policy for a number of reasons. It may be to protect the other party, to comply with a contractual agreement requiring the named insured to do so.
In the case of an Amazon seller, you are required to add Amazon as an additional insured to your policy. Insurance Canopy offers additional insureds at an affordable price, which will depend on your business structure and operations.
PURCHASE AMAZON SELLERS INSURANCE FROM INSURANCE CANOPY
You can fill out an Amazon Sellers Insurance application online to receive a free quote from one of Insurance Canopy’s licensed insurance agents. If you have any questions about the information listed above, feel free to give one of our agents a call. We hope that the above information is helpful with your Amazon business. For more information, take a look at our Amazon Sellers Guide to Insurance.