5 Reasons Why You Should Have Amazon Seller Insurance
We want to disrupt the FBA Insurance model
Not all FBA sellers have Amazon insurance, but you could leave yourself open to unforeseen risks if you don't. We have compiled a list of the top 5 reasons why you should consider getting FBA insurance. It should be simple to sign up, affordable and give broad coverage, no matter where you source, store or sell your products. However, that is currently not the case with most providers. We are FBA sellers ourselves and that's why we want to change it.
Please complete our short form below to receive early access and more information.
1. It protects your business from liability claims. Your Amazon storefront is your business and you should protect it if you are serious about generating money from it. If anyone who buys your product ends up suing you because of an issue with your product, there is a high chance it could end up ruining everything you’ve worked so hard to build. It may seem like a small possibility but is it worth the risk? General and product liability insurance can help to protect you from any such claims.
2. You may need it to sell on Amazon North AmericaIf you sell products on Amazon North America then it is part of Amazon’s Terms of Service that you have “commercial general, umbrella or excess liability insurance” if you hit the Insurance threshold for 3 consecutive months. As of 2019 the 3-monthly thresholds are below:
You must be covered for up to $1m USD or CAD or $10m MXN. For more details see: https://sellercentral.amazon.com/gp/help/1791
3. What would happen if your stock was damaged, lost or stolen?
When you are investing in new products or resupplying, a large proportion of your available capital can be taken up. What would happen to your business if this stock was severely damaged or lost during transit from the supplier to Amazon or a third party storage solution? Chances are it would have a significant impact on your business. With stock insurance you can be covered should anything happen. Remember, inventory stored in Amazon’s warehouses is normally insured but you may want to check with Amazon. Third party storage Inventory, or that stored on your premises may not be covered so you may want to consider stock insurance for that.
4. It can be surprisingly cost effective
Although insurance premiums will be dependent on your exact requirements and situation, we have found the insurance for your eCommerce business can be surprisingly cost effective and gives you piece of mind that your business would be protected should the worst happen.
5. Peace of mind
As an FBA seller, you have enough to deal with already. Getting your business insurance in place will give you peace of mind that you are covered for the most extreme circumstances and events.
Please complete our short form below to receive early access and more information on our eCommerce insurance.
Disclaimer: Generation AMZ does not provide insurance advice. We do not currently underwrite or sell any financial products. Please seek professional advice before making any purchasing decisions.
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