Business insurance is a topic that many new merchants don’t consider until after they’ve been selling on Amazon for a while. While having insurance is generally good business practice, it’s important to know that Amazon actually has specific requirements for Pro Merchants.
For US sellers, the general requirement is that you must hold at least $1,000,000 in Commercial General Liability (CGL), Umbrella and/or Excess Liability Insurance coverage once you’re sales hit $10,000 per month for three consecutive months.
You can find the specific requirements here in Section 9 of the Amazon Policies Business Solutions Agreement:
“If the gross proceeds from Your Transactions exceed the applicable Insurance Threshold during each month over any period of three (3) consecutive months, or otherwise if requested by us, then within thirty (30) days thereafter, you will maintain at your expense throughout the remainder of the Term for each applicable Elected Country commercial general, umbrella or excess liability insurance…”
Note: if you scroll down towards the Definitions section, you’ll see that the Insurance Threshold is $10,000**.
You can also find a less detailed page regarding their requirements here. This page ultimately links tot he Business Solutions Agreement I referred to above, so I would consider that the guiding source.
Insurance providers are regulated by the state, so I can’t recommend a specific carrier. If you would like to find an insurance provider, I would recommend referring to a service like compare.com
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