Amazon Seller Insurance

As an Amazon seller, product liability insurance protects you against claims of injury or property damage caused by the products you sell and distribute. 

It typically covers legal fees, court costs, and any settlement costs related to claims.

As of late 2021, product liability insurance is also mandatory for Amazon sellers making $10,000 in gross sales per month. 

Additionally, sellers are required to carry a minimum coverage of $1M in commercial general liability insurance per occurrence, and name Amazon as an additional insured. 

Amazon may also require that you provide proof of insurance before you can list products to ensure compliance with Canadian regulations. 

So, having Amazon seller insurance is not only best practice for protecting yourself, but essential if you want to maintain your Amazon seller account and business in Canada.

Need Amazon seller insurance? We can help with that.

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As of 2021, all Amazon retailers that sell more than $10,000 in one month are required to carry product liability insurance and name Amazon as an additional insured.  

Sellers are also required to carry a minimum of $1M in commercial general liability insurance. However, be sure to speak with your broker about the appropriate coverage amount for your business. 

Even if you haven’t met the $10,000 threshold, it’s a good idea to purchase insurance. That way, you can protect yourself from the costs of a potential claim.  

Here are a few additional things to consider as an Amazon seller:

• Mandatory requirements: Amazon may require proof of liability insurance before allowing you to list products. Always read the fine print and keep up to date with platform updates, as it can change from month to month. 
• Legal and financial risks: Selling without insurance exposes you to potential lawsuits for injuries or damages caused by your products.
• Business protection: Insurance provides financial coverage for legal costs and settlements, safeguarding your business from unexpected liabilities.

Make sure to stay current with the rules and requirements of the Amazon platform so that you can keep your insurance up to date.

Need ecommerce insurance? If you’re an Amazon seller based in Quebec, we can help.  

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Provided that your business is registered in and operates out of Quebec, KBD can insure you as an Amazon seller.

This includes if you sell to customers internationally. 

So, as long as your headquarters are in the province of Quebec, we can help! 

When in doubt, you can always give our commercial insurance team a call. 

They’ll be happy to answer any questions you may have. 

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Generally speaking, the higher your revenue, the higher your insurance costs will be. 

This goes for Amazon sellers too, who require wholesalers and distributors insurance. 

At KBD, insurance premiums for this type of coverage typically range from $800 – $5000. 

To put this into perspective, here are few of the factors that will affect your Amazon insurance costs:

• Products and their risk: Insurance premiums fluctuate depending on the type of products you sell and their perceived risk (e.g., electronics, beauty products, toys).
• Coverage limits: Higher coverage limits and additional endorsements typically result in higher premiums.
• Sales volume: Insurance costs may increase with your annual sales volume.
• Claims history: In general, it’s a good idea to keep your insurance file claims-free to avoid insurance rate hikes.

Put simply, insurance for Amazon sellers in Canada can range from hundreds to thousands of dollars annually.

The best way to know how much it will cost you is to get an insurance quote for your Amazon business.

If you’re based in Quebec, we can help.

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If you’re an Amazon seller based in Quebec, give the brokers at KBD a call. 

We provide Amazon insurance to businesses registered in the province. 

Here’s how the process to obtain Amazon seller insurance typically works:

• Shop the market: Find insurers that specialise in product liability and e-commerce coverage in your region. It’s important to find a broker that’s familiar with the specifics of Amazon as a platform. 
• Coverage needs: Determine the amount of coverage required based on your products and sales volume. An experienced business insurance broker like KBD can help you map this out.
• Get quotes: Request quotes from multiple insurers to compare premiums and coverage options.
• Policy features: Review policy details, including coverage limits, deductibles, and exclusions.
• Application: Complete an application with your business details and product information.
• Approval: Once you’re approved, obtain proof of insurance and submit it to Amazon if required.
• Review annually: Regularly review your insurance needs as your business grows or product offerings change.

Get a quote for your Amazon business today. 

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KBD Insurance provides home, car and business insurance in the provinces of Ontario and Quebec. 

However, our Amazon sellers insurance services are currently limited to clients who operate their business from a Quebec address.

For specific inquiries, please reach out to our experienced commercial insurance brokers. 

Call us.