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Everything Everyone Should Know About E-commerce Business Insurance – 20 questions answered by POE Insurance Inc. for Amazon and Wayfair sellers

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Everything Everyone Should Know About E-commerce Business Insurance – 20 questions answered by POE Insurance Inc. for Amazon and Wayfair sellers

June 02
10:14 2022

Beginning September 1, 2021, ‘Amazon’s Business Solutions Agreement’ requires sellers to carry and renew business liability insurance and name Amazon as an additional insured within 30 days of gross sales revenue exceeding $10,000 in any month on the Amazon Mall, or in other circumstances as required by Amazon.

The following questions cover most of relevant questions in the market, POE summarized them and answered together here. (Visit Poe Insurance at: www.insurancepoe.com)

1. What is commercial liability insurance?

2. Under what circumstances do sellers need to be insured?

3. What insurance providers and policy requirements are there? 

4. How do sellers add Amazon as an additional insured?

5. Is Amazon US commercial liability insurance mandatory?

6. What are the consequences of not taking out commercial liability insurance after the threshold has been reached?

7. Do all sites require commercial liability insurance?

8. Can sellers choose their own insurance company?

9. What is the cost of insurance?

10. Do sellers need a monthly or annual business liability policy?

11. Is Amazon’s insurance policy only for Chinese sellers?

12. Do both FBA and FBM sellers need to be insured?

13. Do it need to take out insurance if it have reached the sales threshold but have not received an email notification?

14. Can sellers take out insurance for his personal seller account?

15. Is each shop insured individually? Or is it a brand-by-brand policy?

16. How long does it take to receive an approval notice after he have purchased the insurance and uploaded the proof of insurance in the back office?

17. What platforms does POE offer for commercial liability insurance solutions?

18. Besides POE itself, what other insurance companies does POE represent?

19. In addition to commercial liability insurance for e-commerce platforms, what else does POE sell?

20. Does POE have Affiliate Program, how to join POE’s team as an authorized agent?

If he preparing to launch his own business or just want to understand more about how business insurance protects his livelihood, the following answers to help he think it through and plan ahead.

1. What is commercial liability insurance?

Commercial liability insurance is a policy that covers damage caused by third party accidents and bodily injury. It covers bodily damage, property damage and even reputational damage caused by sellers’ businesses.

2. Under what circumstances do sellers need to be insured?

On Amazon.com, sellers will need to be insured if

● Prior to September 1, 2021, the seller achieves monthly gross sales revenue of more than $10,000 for three consecutive months on Amazon.com.

● After September 1, 2021, the seller achieves monthly gross sales revenue of more than $10,000 in any month in Amazon.com’s history.

● If Amazon requires sellers to provide proof of insurance, even if the seller does not meet the “sales revenue of more than $10,000 on Amazon.com” requirement, proof of insurance is still required.

3. What insurance providers and policy requirements are there? 

● The policy limits must have a minimum of $1,000,000 per occurrence and aggregate limits of indemnity covering all liabilities (including merchandise liability, merchandise/completion liability and bodily injury) arising out of or in connection with the operation of sellers’ businesses.

● The type of insurance policy can be commercial general liability, umbrella liability or excess liability and should be a period occurrence policy.

● The insurance provider must have global claims handling capabilities and a financial rating of S&P A- and/or AM Best A-, or higher. If ‘S&P’ or ‘AM Best’ is not valid or used in the country sellers need to insure, sellers may use the local equivalent rating.

● The insurance provider must give Amazon at least 30 days’ notice of cancellation, amendment or non-renewal.

● The policy must name ‘Amazon.com Services LLC. and its affiliates and agents’ as an additional insured.

● The deductible amount of any policy may not exceed $10,000 and any deductible amount must be listed on the certificate of insurance.

● The policy must cover the sale of all items posted by sellers on the Amazon Store.

● Sellers insured names must match the “Legal Entity” name sellers provide to Amazon. To see the name of sellers’ legal entity, and refer to sellers’ account information.

● The insurance policy must be completed and signed.

● The policy must be valid for at least 60 days from the date of submission.

4. How do sellers add Amazon as an additional insured?

Please contact insurer to add ‘Amazon.com Services LLC and its affiliates and agents’ at ‘P. O. Box 81226, Seattle, WA 98108-1226.’ as an additional insured. (This one is essential, and Poe Insurance can fulfill this requirement perfectly for sellers’ businesses.)

5. Is Amazon US commercial liability insurance mandatory?

Yes. Commercial liability insurance can protect sellers in the event of an accident arising from the goods sellers sell, giving sellers the peace of mind to focus on growing sellers’ businesses. Under the Business Solutions Agreement, sellers must hold valid business liability insurance if sellers have reached the threshold for purchasing it. Sellers are also liable to indemnify Amazon for the costs incurred by Amazon in settling the claim unless Amazon agrees to waive its right to compensation. (Two-way cover)

6. What are the consequences of not taking out commercial liability insurance after the threshold has been reached?

If the threshold for purchasing business liability insurance has been met, and if Amazon finds that sellers have not purchased this insurance within the applicable claim period, or have not submitted proof of qualifying insurance in a timely manner, Amazon may take action, such as restricting sellers from selling items in specific categories, or even suspending sellers’ accounts, until sellers provide proof of insurance.

7. Do all sites require commercial liability insurance?

Under the Amazon Services Business Solutions Agreement, sellers must purchase business liability insurance for all sites sellers sell. Currently, Amazon only enforces this requirement for US sites.

8. Can sellers choose their own insurance company?

If sellers do not currently have commercial liability insurance, sellers may choose any insurance provider that meets the above Amazon requirements or choose an insurance provider from a network of trusted insurance providers identified by Amazon.

9. What is the cost of insurance?

The cost of insurance varies depending on a number of factors, such as the type of goods sellers sell, the expected sales revenue and sellers’ choices of insurer. Poe Insurance is dedicated to provide sellers with affordable coverage.

10. Do sellers need a monthly or annual business liability policy?

Most of the insurance companies’ plans in the marketplace are currently annual, which can be decided by the seller and the insurance company.

11. Is Amazon’s insurance policy only for Chinese sellers?

No, it is not only for Chinese sellers, it is a requirement for global sellers, as long as the threshold is reached, they need to be insured.

12. Do both FBA and FBM sellers need to be insured?

No. Insurance is required once sales reach the threshold, regardless of the shipping method.

13. Do It need to take out insurance if It have reached the sales threshold but have not received an email notification?

Yes, if sellers have reached the threshold for commercial liability insurance, sellers must have valid commercial liability insurance.

14. Can sellers take out insurance for his personal seller account?

Both business seller accounts and individual seller accounts are required to have business liability insurance if the account has reached the threshold for purchasing business liability insurance. Currently individual sellers cannot purchase through the Amazon Insurance Accelerator program, there are some insurance companies that support individual sellers.

15. Is each shop insured individually? Or is it a brand-by-brand policy?

No. Sellers need to insure by shop, not by brand.

16. How long does it take to receive an approval notice after he have purchased the insurance and uploaded the proof of insurance in the back office?

Please refer to the actual situation. Normally, sellers can check the status of the audit on the Seller’s Platform within 7 days after uploading the proof of insurance.

17. What platforms does POE offer for commercial liability insurance solutions?

Poe Insurance is familiar with the insurance policies of the major e-commerce platforms and have made its professional insurance services available to sellers everywhere.

Amazon Insurance

If his Amazon store simply does not have the required Certificate of Insurance (COI), it may be at risk of being “temporarily blocked”. POE know enough about Amazon’s requirements to best meet his needs. If he need product liability insurance for the US/Canada/European Amazon store, please contact.

Wayfair Insurance

POE entered into a strategic partnership with Wayfair. All sellers who register with Wayfair are required to purchase product liability insurance. POE is a good choice for somebody. POE has the best knowledge of Wayfair’s insurance claims.

Walmart Insurance

Every seller who does business with Walmart (or Sam’s Club) or Walmart DSV must have general liability insurance as well as product liability insurance. Before someone buy Walmart insurance, he need to determine what limit is required for his type of product. He can write directly to Walmart Marketplace for this information.

Overstock Insurance

If someone plan to sell his products on overstock.com, he will need to provide product liability insurance from overstock.corn. POE will evaluate this and provide he with a personalized quote. POE will issue he a full policy and COI certificate within 24 hours of payment. Send an email and expect professional advice within the next few hours. Remember that POE offers 24/7 service.

Home Depot / Lowe’s lnsurance

Before it will be allowed to sell his products in Home Depot or Lowe’s stores, he will most likely need to purchase product liability insurance. Be sure to contact his Marketplace Development Manager to find out the exact insurance requirements. After he purchase insurance, POE will forward the Certificate of Insurance to his Marketplace so he can proceed with setting up his seller account.

Other Marketplace insurance

POE supports everyone to enter the following marketplaces: Amazon, Shopify, Rakuten, NewEgg, Sears, Walmart, Etsy, Overstock, eBay, Target, Wayfair, Wish, Shein, Jet, Houzz, Groupon, Reverb, Home Depot, Lowe’s, Macy’s, Shopee, Zalando, Mercado Libre, Allegro, AliExpress, Flipkart, Americanas, ASOS, OTTO, KAUFLAND.DE. Cdiscount, Farfetch, Qoo10Japan, Joom, Bonanza, Tophatter, Decathlon, etc.

18. Besides POE itself, what other insurance companies does POE represent?

Poe Insurance provides a professional service to sellers around the world, including US sellers, Canadian sellers, Mexican sellers, UK sellers, Vietnamese sellers and Japan sellers, and work with many major insurance companies, such as American Family Insurance, Great American Insurance, Hiscox, American National Insurance, United American Insurance, Liberty Mutual Insurance, State Farm, The Hartford and Progressive Commercial.

19. In addition to commercial liability insurance for e-commerce platforms, what else does POE sell?

Poe Insurance have products like E-Store Suspension Insurance, which is a way for ecommerce sellers to protect against a worst-case scenario of suspension by ensuring they will be able to collect funds and continue operations if their selling channel and/or distributions are halted.

Besides, POE also provides multiple well-tailored business insurances, for Architects and Engineers, Auto Services, Beauty, Cleaning, Construction, Consulting, Contractors, Education, Entertainment, Fitness, Financial Services, Food and Beverage, Insurance Professionals, Real Estate, Retail and Therapy.

20. Does POE have Affiliate Program, how to join POE’s team as an authorized agent?

Become a Poe Insurance affiliate partner and set up everyone direct sales in his country.

The Poe Insurance Affiliate Program includes entrepreneurs, educators, influencers, and content creators who inspire and teach their audience about entrepreneurship with Poe Insurance. The program is free to join, and allows he to monetize his audience and relationship. He will earn commissions from each clients he developed in his area or country.

At present, POE have established representative offices in several countries, such as the United States, Canada, Vietnam, China. POE has extensive experience in the insurance industry related to E-commerce. POE has been recognized by multiple international marketplaces. Affordable premiums with good service has always been  strong advantage, with absolute market competitiveness. With the expansion of global business, everyone now need more professional agents to join the team, and POE will also provide a wealth of rewards and commission mechanisms for outstanding agents.

If he are interested in joining the Poe Insurance team, please send his personal statements and professional experience to [email protected], or directly contact Skype: [email protected]

「POE INSURANCE」

Poe Insurance is an insurance company specializing in Amazon product liability insurance located in Texas, USA. Each broker at Poe Insurance is professionally licensed and extensive experience to provide sellers with the most efficient and reliable service available. 24-hour customer service to meet sellers’ businesses needs. Practicing sustainability, reliability and integrity. Commitment to providing the best value for money insurance and the best quality of service. Poe Insurance charge reasonable fees and offer free valuations, free advice and other services. Poe Insurance have been in business for 7 years and have been trusted by over 10,000 small businesses.

Many of the US sellers and Canada sellers POE have worked with have praised its service, saying that it has helped them solve a lot of problems and keep their business in order, and that up to 60% of sellers are willing to refer new customers to POE after the service.

Poe Insurance regularly explain relevant insurance policies to keep clients up to date with the latest insurance knowledge and ensure that their career is protected at all times. (Check out videos at: https://www.youtube.com/watch?v=edGJX8NahsY)

Choose Poe Insurance, the future is with sellers.

Visit Poe Insurance at: www.insurancepoe.com

Contact Poe Insurance with any questions at [email protected]

Media Contact
Company Name: Poe Insurance, Inc.
Contact Person: Dr. Poe
Email: Send Email
Phone: 800-658-1079
Country: United States
Website: www.insurancepoe.com

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