Description
Are you selling on Amazon?
Sellers with a revenue of USD/EUR 10,000 in any month are required to obtain a commercial liability insurance
Choose yours from Colemont now!
Why choose us?
Mandatory but useful!
- Your finance will be safe. The cost of a product liability insurance policy is definitely cheaper than the compensation obligations that might arise by bodily injury or material damage to the customers, let alone the relevant legal costs.
- Your business will be safe. Amazon could remove your products or suspend your seller account, if you can’t prove you have obtained the required insurance policy.
Colemont is the leading Lloyd’s Coverholder in Baltics for liability insurance
- We issue more than 3000 liability policies a year.
- It’s easy to buy insurance (simple online application form)
- We have experience and qualifications.
- We professionally and very promptly regulate claims.
Is it mandatory for me?
- US: businesses wishing to sell their products on Amazon in the US are required to purchase product liability insurance if they earn upwards of US$10,000 each month through selling their products.
- EU: businesses need to obtain a public third party liability insurance, which should include products liability and bodily injury if their turnover is ~ EUR 5,000 over a certain threshold for 3 consecutive months.
- UK businesses need to obtain a public third party liability insurance, which should include products liability and bodily injury if their turnover exceeds the threshold of GBP 4,000 for 3 consecutive months.
- AU businesses need to obtain a product liability insurance if their turnover exceeds the threshold of AUD 10,000 for 3 consecutive months.
Colemont advice
- Assess whether you, as an Amazon seller, have the burden of concluding this mandatory insurance contract.
- Product liability insurance does not give you a free permission to sell products that fail to meet safety, certification, labeling, and testing requirements.
Need a free consulting? Contact our Specialist
Marius Gaidamavičius
Underwriting Manager
M.: +370 637 82321
E.: marius.gaidamavicius@colemont.lt
FAQ
Who must buy this insurance?
According to Amazon Seller Central, starting from September 2021, sellers with a gross sales revenue of USD 10,000 in any month are required to obtain commercial liability insurance with limits of at least USD 1 million. The liability insurance policy must also name Amazon as an additional insured party.
What could happen if i don’t buy Product liability insurance for Amazon sellers?
Amazon may ask for payment for the expenses incurred in handling claims if a seller doesn’t have commercial liability insurance. In addition, until the seller purchases a commercial liability insurance policy, Amazon may limit the sellers’ sales activity or even deactivate their accounts.
How much does it cost?
The expected yearly revenue of the sellers, the products they offer, and a number of other factors affect how much their Amazon liability insurance plans will cost. General liability insurance policies that cover up to EUR 1 million limit, usually cost between EUR 500 and EUR 2,500 annually.
