Insurance for Amazon Sellers

Many businesses use Amazon or other online platforms to sell products. However, this doesn’t mean that the platform’s insurance will assist those businesses if something goes wrong. Sites like Amazon generally expect their sellers to protect their own businesses with their own insurance.  

If you are planning to sell products through an online platform, you might need several types of insurance. Each may provide financial assistance if unexpected problems—accidents, property damage, injuries and litigations, to name a few—threaten your business. Take a closer look at the coverage you may need. 

Coverage Amazon Sellers May Need 

While no Amazon seller wants their business to face problems, there is no way to eliminate the risk of something unexpectedly going wrong. By having appropriate insurance, the seller may have help covering costs related to these challenges. Ultimately, the right coverage can help keep the business more financially secure if problems arise. 

Some of the coverage you may find necessary for your business includes:  

• General liability insurance—A third party (e.g., a customer) may sue your business because they claim you caused them property damage or bodily injuries. Your general liability policy may help cover the costs such as legal fees and damages that you might have to pay to the affected party. 

• Product liability insurance—Someone may sue your business because they believe that a product that you made or sold caused them harm. This coverage may help the business pay the related costs.  

• Cyber liability insurance—Data theft or similar incidents may expose sensitive information, such as customers’ credit card information. Cyber liability coverage can help cover costs that may arise from these incidents. 

• Property insurance—Hazards like fires or burglary could damage your business or products. This coverage can help you cover the costs of the losses. 

You may also need other types of coverage such as workers’ compensation insurance, business interruption insurance and inland marine insurance. Also, keep in mind that Amazon requires certain sellers to carry coverage. Requirements vary, so check the terms of your Amazon seller agreement to learn more.  

If you sell for Amazon, you need business insurance that appropriately protects your online operations. Your Well Insurance agent can help you determine how to get the right coverage for your needs. Speak to one of our agents to learn more about how various types of coverage may be able to help you.