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If you are involved in e-commerce by selling online, you may find that you face risks similar to those of other businesses. The company requires those involved in the Amazon marketplace to obtain a certain amount of business coverage of up to $1,000 per event:

• Commercial general liability insurance
• Bodily injury insurance
• Personal injury insurance
• Property insurance

Amazon vendors should realize that this is limited coverage that will not protect them if losses require a larger claim. Like any business person, those involved in e-commerce must assess their needs and purchase the appropriate corresponding insurance protection.

Overall responsibility
General liability insurance is basic coverage for the online seller, just as it is for traditional retail outlets. It is there to protect your business from the liability of:
– Insults
– Negligence
– Shocks

If a related lawsuit occurs, this insurance may pay the payment you are judged to pay and legal fees.

Product liability coverage is generally tied to this policy. Protects the manufacturer or seller against bodily injury or property damage to a third party caused by a defective product.

There are cases, however, when this form of coverage does not help. Why? In the event that a seller is not properly qualified and files a claim, they may get a ‘no’ from the insurer.

Take the case of Mary, an Amazon seller who successfully sold skincare products on an online marketplace.

Business was going well for Mary until the fateful day a consumer sued her in connection with a serious skin breakout attributed to the creams Mary sent her. When Mary filed a claim, she was shocked: the insurance company denied her coverage because her policy was misclassified as an Internet retailer. As someone who put her company’s labels on her creams, she, she should have been labeled a ‘manufacturer’!

Too bad your agent didn’t catch the mistake! The financial fallout had a far reaching effect and eventually forced her to declare bankruptcy.

While this explains the urgency of being on the lookout for policy issues, there are other forms of coverage that an Amazon seller should be very aware of.

Other Amazon Seller Policies

One of the main concerns that any Amazon seller has is the possibility of being suspended from the Amazon seller network. If this occurs, the loss of income can be substantial. Amazon’s suspension insurance policy is the number one recommended coverage for the industry across the board.

Other insurance policies to consider are:

• Commercial car
• Workers’ Compensation
• Umbrella/Excess
• Cyber ​​Responsibility
• Oceanic marine
• EPLI

Of course, there is no substitute for speaking with an insurance professional who will guide you toward an insurance program that is tailored for you.

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