Whether you’re thinking of opening up an Amazon storefront or you’re already an established Amazon seller, insurance should be one of your top priorities in order to protect your products and your business. This post will help answer any questions you have surrounding Amazon insurance and help you get started on obtaining coverage for your e-commerce business.
Frequently asked questions regarding Amazon Insurance:
Do you provide insurance for US sales?
Yes, we can provide insurance for Canadian-based Amazon businesses, even if your sales are global, for example from Amazon US. You will need to specify the percentage of sales from each country you sell to when you fill out your insurance application.
What types of insurance do I need to have?
At a minimum, you will want to obtain Products/Completed Operations and Commercial General Liability (CGL) coverage for your business. Depending on where you import your products from and your exposure to cyber risks, you may consider purchasing additional coverage. The brokers at Fuse Insurance will review your business to ensure you are receiving the best protection for your company.
Why should I have $2 million in liability insurance instead of $1 million?
For a couple of reasons, $2 million in liability is the minimum that we offer for coverage. The price of liability claims has increased drastically and $1 million is no longer sufficient for covering most claims. All it takes is one accident for you to end up paying out of pocket for legal fees in the event your business is involved in a lawsuit. This higher limit of insurance coverage prevents any overhead costs from occurring. Our policy limits are provided in CAD, so in order to meet Amazon’s US requirement of $1M USD, we need to have a $2M CAD limit (as $1M CAD is too low with the exchange rate). Further, the premium difference between C$1M and C$2M limits is generally relatively low.
Will the certificate of insurance name Amazon?
If you work with a broker experienced in Amazon insurance, your certificate of insurance will include all the information that Amazon requires. This includes naming Amazon as an additional insured, listing the deductible amounts and giving 30 days notice of cancellation. If those requirements ever change, the certificate of insurance can quickly and easily be updated.
How do I get started?
Fill out our secure online Amazon insurance application form and select “Amazon FBA and eCommerce” as the business type to get started on your insurance quote. This will ask us the exact questions we need to know in order to offer you an indication on pricing and/or quotes. We will be in touch once the form is received, but if you need help along the way, we are happy to answer your questions over the phone at 1-866-387-FUSE (3873) or over email at firstname.lastname@example.org.
The right insurance coverage will give you the peace of mind you need in order to continue selling and scaling your Amazon business. Your annual premium will vary depending on the types of products you sell and their corresponding product risk category. The experts at Fuse Insurance can provide customized amazon insurance packages with coverage that you can rely on. To get a quote today, use our online application form.