Last Updated on: 7th April 2023, 08:39 pm
As an Amazon seller, it’s important to understand the insurance requirements in order to protect your business and ensure compliance with Amazon’s policies.
Amazon requires sellers to have insurance coverage for their inventory, as well as liability coverage for any potential incidents that may occur during the course of business. Here’s a comprehensive overview of Amazon’s seller insurance requirements.
Amazon requires sellers to have insurance coverage for their inventory, which includes the products they sell on the platform.
The coverage must include loss or damage caused by various events such as theft, fire, natural disasters, or other unexpected events.
The coverage must be sufficient to cover the full replacement value of the inventory, and the policy must name Amazon as an additional insured party.
Amazon also requires sellers to have liability coverage. This type of insurance provides protection against any claims or lawsuits that may arise from incidents such as product liability, personal injury, or property damage.
The coverage must be sufficient to cover any potential losses or damages, and the policy must name Amazon as an additional insured party.
Certificate of Insurance
Sellers must provide a certificate of insurance (COI) to Amazon, which serves as proof of insurance coverage. The COI must include the following information:
- Insurance company name
- Policy number
- Effective dates of coverage
- Types of coverage (e.g. liability, inventory coverage)
- Limits of liability
- Named insured (e.g. Amazon, the seller)
- Description of covered products or services
Keeping Coverage Up-to-Date
It’s important for sellers to regularly review and update their insurance coverage to ensure it remains adequate and meets Amazon’s requirements.
This includes updating the policy limits, adding additional insured parties, and renewing the policy as necessary.
Amazon’s seller insurance requirements are designed to protect both the seller and Amazon against potential losses or damages.
It’s important for sellers to understand the requirements and ensure they have adequate coverage for their inventory and liability.
By providing a certificate of insurance and regularly reviewing and updating their coverage, sellers can remain in compliance with Amazon’s policies and protect their business.