Amazon Seller Insurance

Delivering Insurance for Your Amazon Business.

Selling on Amazon can open your business up to a world of opportunity. Whether you just started your business or you’ve been selling your product for a while, Amazon can help broaden your customer base and increase sales quickly.

But before you become an official Amazon retailer, you may want to make sure you’re protected with insurance. Selling your product on Amazon can expose you to new risks, as well as lawsuits — and Amazon knows it. As of September 1, 2021, Amazon began requiring sellers who make more than $10,000 in sales per month to carry general liability insurance (GL). After all, they want to protect their business against any third-party losses and liabilities.

Fortunately, at Simply Business, we can help. It’s fast and easy to get a quote and compare policies online with us. If you have questions, our insurance professionals are just a phone call away.

Also, when we refer to “Amazon Seller Insurance”, this will mean any one or combination of multiple business insurance policies that will help cover an Amazon retail business. We’ll get into more detail below.

Ready to get a policy now? Let’s go!

Benefits of getting insured:

• You’ll meet Amazon’s requirements for selling on their platform.
• Certain types of insurance can protect against costly accident and injury claims.
• If you’re accused of advertising injury, certain policies may offer protection.
• Certain policies can cover costs related to a cyberattack.

What Types of Insurance might Amazon Sellers Need?

General Liability Insurance

If you sell at least $10,000 in goods per month on Amazon, you will be required to purchase general liability insurance. Specifically, Amazon requires you to have coverage for up to $1 million for any one incident or claim and up to $1 million over the policy’s term. As soon as you reach $10,000 in sales in any month, Amazon will request a certificate of insurance.

But even if you don’t sell $10,000 in a month, purchasing a general liability policy can still be a smart move. This foundational policy can help protect your business if there’s a bodily injury or property damage to a third-party, third-party medical payments,, or if a customer or vendor gets injured while using your product.

Here’s what general liability insurance usually covers:

• Third-party bodily injury
• Third-party property damage
• Personal and advertising injury
• Claims arising from product defects
• Medical expenses
• And more

General liability insurance usually doesn’t cover:

• Damage to your own property
• Professional services
• Workers’ compensation or injury to your employees
• Damage to your work
• Motor vehicles while in business use
• Expected or intentional injury or damage
• And more

Workers’ Compensation Insurance

If you have anyone working for you — even just one person — you likely need workers’ compensation insurance to comply with state law. This policy protects your business if an employee gets injured or sick on the job. It can help cover their medical bills, time off from work, and even job rehabilitation. Without insurance, you could be on the hook to pay for expensive medical bills and your employee’s lost wages.

In general, workers’ comp can cover:

• Medical costs
• Lost wages during a worker’s time off
• Rehabilitation expenses
• Death benefits

It does not cover:

• Client or vendor accidents
• OSHA fines
• Work safety improvements
• Wages for a worker who replaces the injured employee

Cyber Insurance

While cyber insurance is not required when you sell on Amazon, it could be good to consider. The bulk of your work is done while connected to the internet. This means you’re at risk for cyberattacks, which can be expensive to remedy. Fortunately, cyber insurance can help cover a number of the costs resulting from a cyberattack.

Cyber insurance usually covers:

• Crisis management expense
• Forensic and legal expense
• Fraud response expense
• Extortion loss
• Public relations expense
• And more

Cyber liability insurance usually does not cover:

• Potential future lost profits
• Cost to improve system security
• Loss of value from theft of intellectual property
• And more

Why Do I Need Amazon Seller Insurance?

As we mentioned earlier, Amazon requires general liability insurance if you sell at least $10,000 in goods a month. You can check out the specific requirements from Amazon here, but here’s the bottom line: as soon as your sales reach $10,000 in any month, you’re required to provide proof of insurance, cover product liability, and add Amazon as an Additional Insured.

But even if you don’t sell thousands of dollars in goods, you may want coverage anyway. General liability insurance can:

• Prevent you from paying out of pocket for costly third-party damages and lawsuits.
• Protect your business if you inadvertently sell a defective product that harms a customer.
• Meet requirements for leasing or renting space, such as a warehouse or shipping facility.
• Protect you from accidents and damage in your home office, which aren’t covered by homeowner’s insurance.

Imagine you manufacture homemade soaps, and one of your customers complains that your soap caused a life-threatening allergic reaction. As a result, the customer sues you for the cost of medical bills. Your general liability insurance, which may include product liability insurance, can help cover the costs and any legal fees.

In addition, you may want to purchase workers’ compensation (if you have employees), and cyber insurance. Workers’ compensation may even be a state requirement, depending on where you live and how many employees you have. Meanwhile, cyber insurance can help cover the costs associated with data breaches.

The truth is, accidents, property damage, and cyberattacks do happen. But business insurance can help protect against very costly damages and keep your business running smoothly.

Amazon Seller Insurance FAQs

• Are there Amazon seller insurance requirements?

  Yes, under certain circumstances! We actually wrote a whole article on this topic. In short, Amazon requires you to carry general liability insurance if you are under the Professional Seller Plan and have more than $10,000 in sales per month.

  In addition, Amazon requires your business policy to:

  • Meet certain coverage levels. If you earn $10,000 or more in monthly sales, your policy must have a $1 million per occurrence limit and a $1 million aggregate limit.
  • Include product liability coverage. This helps cover costs if your product is defective and a customer gets hurt.
  • List Amazon as an Additional Insured. This is how Amazon knows you have general liability insurance coverage.
  • Be valid from 180 days of submission. Your policy must be valid for 180 days after you send in your certificate of insurance.
  • Match your legal entity provided to Amazon. Your business’ name must match the legal entity you provided Amazon when you initially signed up to sell with them.
• Is my policy premium tax-deductible?

  Most likely, yes! You may be able to deduct your insurance premiums when you file your income tax return. Your best bet is to talk with an accountant or tax professional to learn more.

• How much Amazon seller insurance coverage will I need?

  There’s no one-size-fits-all answer to this question. How much coverage you need often depends on:

  • The size of your business
  • Your business’s location
  • How much you earn in annual revenue
  • And more

  But there’s good news. When you fill out our quote form, we’ll help you find coverage for your Amazon business, fast and easy. If you have questions along the way, our licensed insurance pros are here to help.

  And if you have questions? A Simply Business licensed insurance agent can help. We're just a phone call away at 844-654-7272.

• Do you need insurance to sell on Amazon?

  In some instances, it’s required. It’s also something you should consider even if Amazon doesn't require it for your business. Otherwise you could be putting yourself and your business at risk for financial fallout. Before you make your first sale, make sure you have protection in place.

• What does business insurance cover?

  A comprehensive business insurance solution that includes general liability insurance can cover:

  • Third-party bodily injury
  • Third-party property damage
  • Claims arising from product liability
  • And more

  Simply Business can help you find the coverage you need at an affordable price.

• How much does Amazon liability insurance cost?

  The cost of your premium depends on several factors. Generally speaking, the cost of your policy depends on:

  • Your annual revenue
  • Your annual payroll
  • Number of employees
  • Your business location
  • The type of products you offer
  • And more

  We can help you find GL policies for as low as $22.13 per month.*

  Wondering how much you’ll pay for Amazon seller insurance? Click here to answer a few easy questions and get free quotes to compare policies.

Why Choose Simply Business?

If you need affordable business insurance fast, Simply Business is the place to go. We’re a fast-growing online insurance provider, trusted by thousands of customers to protect their businesses.

We make it easy to find and compare free quotes from leading insurance companies. Our insurance professionals also understand Amazon’s new requirements and can help you design an approved policy that protects your business.

Choosing Simply Business is a simple decision. Here’s why.

We’re quick and affordable. Getting a policy is hassle-free and affordable. You can check “getting business insurance” off your to-do list.

We’re flexible with coverage. If your needs change, just call us, and we can likely adjust your coverage.

We understand small business owners. We work with small business owners all day, every day. We understand the unique needs of small business owners, and we’re here to address them in your coverage.

We’re trustworthy and genuine. If an accident, injury, or lawsuit happens, we have your back. You can trust your insurance policy to help cover costs and help you get back doing the work you love.

We make it easy to compare free quotes. Insurance doesn’t need to be complicated. We offer an online quote form that lets you compare policies and choose one that meets your needs.

*Monthly payment calculations (i) do not include initial premium down payment and (ii) may vary by state, insurance provider, and nature of your business. Averages based on April-June 2022 data of 10% of our total policies sold.

content is intended to be used for informational purposes only. It is not intended to provide legal, tax, accounting, investment, or any other form of professional advice.