If you are on the Professional Seller Plan on Amazon (the 39.99 a month plan), you are required to have product liability insurance (login required for the link to work). I am going to cover how to start the conversations and a couple of companies you can contact to see about getting insurance. More than likely your home or auto insurer will not be able to help you as business insurance is a specialty. Remember, they can update this policy at anytime, so please make sure you look at that link for the current policy. However, here is what it states at the time of this posting:
Pro Merchant Insurance Requirements
Pro Merchants who sell on Amazon.com must provide proof of Commercial General Liability insurance. This insurance, obtained at the merchant’s expense, shall covers up to $1,000,000 per occurrence and in the aggregate and must include products liability, bodily injury, or personal injury, property damage, and other requirements as stated in the Amazon Services Business Solutions Agreement. The insurance must indicate that “Amazon.com, Inc., and its affiliates and assignees” are added as additional insureds.
We discussed this on my podcast as well- Interview with Paul Gerbhart
Summary of Requirements for Pro Merchant Insurance
The Certificate of Insurance must:
- Be an original document.
- Contain an Additional Insured Endorsement.
- List all Pro Merchants’ subsidiaries or DBAs covered by the certificate provided.
- Provide at least 30 days’ notice of cancellation, modification, or non-renewal.
- Show complete insurance carrier names as listed in the A.M. Best Property & Casualty Guide.
- Be completed in its entirety and signed.
I have had coaching clients that have had trouble getting insurance so here is my advice. When you call you want to simply say: (where it says do or do not- say what is true for your business.
I have an online store that carries finished goods, and I need a B.O.P Policy of at least $1,000,000 to cover product and general liability. I do/don’t carry dietary supplements. I do/do not private label or manufacture my own goods. I do/do not import items from out of the country. I do/do not have a physical location.
From there they will probably be able to tell you if they can help you or not. Note: all of the do/do not sentences can greatly increase the cost of coverage and that is something to consider when you are sourcing.
If they can help you, then you say- one of the places we sell online is Amazon.com. Part of my agreement with them is that Amazon.com, Inc., and its affiliates and assignees” are added as additional insureds.
Once you get a quote from a couple of vendors you should ask about the following types of riders for your policy
- Covering inventory in your home/warehouse
- Covering inventory while you are transporting it
- Insurance for hired and rented autos
Here are some contacts I have for business insurance:
Wells Fargo- this is who I got the best quote from and I purchased a contract with CNA through them. I called recently and was told that they could still offer the same type of insurance plan that I carry. Here is their contact information:
Zurich Insurance http://www.zurichna.com/
1-877 On Your Side
The Hartford http://www.thehartford.com/general-liability-insurance/
Business Insurance Service Center