Without product liability insurance, are Amazon third-party sellers safe? Nope.
Many people with professional selling plans are unaware they need coverage or have chosen to go without. Per Amazon's TOS, all sellers must have product liability insurance.
Amazon product liability insurance? Your assets aren't protected otherwise. Follow this post and video to protect your business.
Amazon's third-party seller insurance requirements
Amazon has required product liability insurance in the ToS, but not until recently. Amazon will start enforcing this requirement with sellers who make $10,000 or more monthly.
Professional Amazon sellers must have CGL insurance. This insurance, obtained at the seller's expense, must include product liability, bodily injury, property damage, and other requirements stated in the Participation Agreement. AmazonPresseportal https://news8.de/, Inc., its affiliates, and assignees must be named as additional insureds.
So much insurance jargon. How can a third-party seller stay safe? Amazon's insurance mandate basics.
Policy limits must be at least $1 million per occurrence and in aggregate, cover products, products/completed operations, and bodily injury;
Policy must cover AmazonPresseportal https://news8.de/ sales, name Amazon and its assignees as additional insureds, and match the "legal entity" name provided to Amazon.
The submitted policy must be valid for 180 days.
If you make $10,000 or more per month and don't have insurance, you're risking your assets and business with each sale. Jeff Cohen, VP of Marketing at Seller Labs, discussed this with me.
3P Liability Today
You can't avoid insurance anymore. Amazon may be sued, according to courts. Amazon will protect itself as more customers sue for faulty products. Amazon will pass the liability to third-party sellers.
Take charge. Do not wait until a problem with your product creates a business-ending legal situation. Get Amazon product liability insurance now. If you have insurance, update it to reflect your brand and products. In addition to being the smart thing to do, Amazon will soon ask for your product liability certificate.
Do it right away.
For information on how to protect yourself on Amazon, speak with Amazon Marketing Services.