When most sellers first begin their Amazon businesses as they venture into being an amazon seller Singapore, they very often are unaware that they must have liability insurance if they are a Pro Merchant on Amazon.
If you are one of the, you might like to know that e-commerce insurance isn’t as difficult (or pricey) as you might assume, despite the fact that for some people it sounds frightening.
Having the appropriate insurance to protect yourself and your company is a crucial aspect of treating your Amazon business like any other business.
If you’re like many new or seasoned sellers, you may not have known that Amazon eventually mandates that you carry product liability insurance. As a merchant, you might not anticipate that such a straightforward product could cause harm, but accidents can occur. When you’re selling goods on Amazon, insurance is usually the last thing on your mind, but it’s better to be prepared for unanticipated events than to have none at all.
Minimum Insurance requirements of Amazon for Professional sellers
Professional online sellers or an Amazon seller Singapore on the Amazon platform will need to fulfil the minimum insurance requirements set by them. Amazon will require indeed that every seller to buy a Commercial General Liability with a coverage limit up to US$1,000,000 per occurrence and in the aggregate and must include product liability, bodily injury, or personal injury, property damage. Those requirements are basic, but many sellers in Singapore are confused on what is it for and how much will it cost. We want to guide you through it to help e-sellers fulfilling Amazon requirements with the most affordable options on the market.
Why does an Amazon seller Singapore needs Commercial General Liability when selling on Amazon?
The insurance will secure both Amazon and you in case of an unexpected event. But what could go wrong? Actually, it is not because you are selling online that your risks are different from any brick and mortar shop. You are facing the same risks. And the main risk is related to the product you are selling on Amazon platform. Even if you are just distributor, you carry the same risks as a manufacturer as you will be responsible for the bodily or property damage caused by an unexpected product default. Imagine that the product you are selling has a hidden default and someone get injured because of that: as you are the one selling the product, you will be the one sued, or most likely Amazon: in order for Amazon and you to be properly covered, this insurance is needed and must include Amazon.com, Inc as co insured.
Who will need to buy this insurance?
Online the pro Amazon sellers with threshold amount need to buy this insurance: individual sellers or small pro sellers are not required to buy it. The limits over which the insurance is needed are as follow:
- Ten Thousand U.S. Dollars ($10,000) (if the Elected Country is the United States).
- Ten Thousand Canadian Dollars ($10,000) (if the Elected Country is Canada),
- One Million Japanese Yen (¥1,000,000) (if the Elected Country is Japan),
- One Hundred Thousand Mexican Pesos ($100,000) (if the Elected Country is Mexico)
Even if you do not reach these figures, you should still consider carrying an insurance policy as you will still be exposed to a liability claim.
If you don’t fulfil the requirements of Amazon, they will suspend your business. And this means the end of your online business.
How to buy Amazon sellers insurance for an an Amazon seller Singapore?
Insurers will require a lot of information about your business and your product in order to generate a quote. This is not a simple policy to underwrite as price will depend on the type of product sold, volume of business, area of sales, quality certificate in place, etc… All this information is needed for insurance underwriter to assess and generate a quote. At Orix insurance, we will help you collecting quotes from various insurers to make sure you get the best rate and yet, fulfilled Amazon insurance requirement.
Protect your Amazon business and yourself
That’s all, then! As you can see, obtaining an insurance for your Amazon business is simpler than you might have imagined. Additionally, it will provide much-needed security for both you and your company (just in case).
In other words, be at ease so you can concentrate on expanding your company.
Please leave a comment or contact us if you have any further queries about Amazon seller insurance.