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Amazon Seller Insurance

Amazon Sellers Liability Insurance Quick Quotes From Up To 18 Carriers

With one simple application get multiples quotes, expert advice from an industry veteran, broad coverages, and lowest Amazon Liability prices. Don’t trust an online start up with cut rate coverages for your protection.

Selling on Amazon opens the door to millions of customers—but also to unique risks. From product liability claims to compliance with Amazon’s strict insurance policies, having the right coverage is essential to protecting your business and staying operational. Sadler Insurance specializes in e-commerce solutions, ensuring that Amazon sellers meet all requirements and safeguard their future.

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Why Choose SADLER for Amazon Seller Insurance?

SADLER Insurance has been a trusted partner for e-commerce businesses for decades. We understand the complexities of Amazon’s requirements and offer seamless, tailored solutions to protect your business.

Simple Applications: Submit one form to receive quotes from up to 18 leading insurers.
Fast Turnaround: Receive competitive quotes in 24–48 hours to stay compliant.
Flexible Payment Plans: Manage your premiums with monthly installment options.
Dedicated Support: Our team guides you through every step, from selecting the right policy to submitting proof to Amazon.
Occurrence and Claim Made: In many cases we can offer the superior occurrence policy form.

With SADLER, you gain more than an insurance policy—you gain a partner invested in your success.

How Much Does Amazon Seller Insurance Cost?

SADLER ensures affordable, tailored policies for sellers of all sizes:

Low-Risk Sellers: $600–$1,500 annually for low-risk products.
Moderate-Risk Items: $2,500–$5,000 per year.
High-Risk Categories: $6,000+ annually.

Pricing depends on your annual revenue, product category, and risk level. Request a free quote to find the best plan for your business.

Why Do Amazon Sellers Need Insurance?

Amazon’s Pro Merchant Policy requires sellers to maintain liability insurance if their gross sales exceed $10,000 in any month. This is not just about compliance—insurance is a critical shield against financial risks, such as:

Product Liability: Claims of injury or property damage caused by defective or harmful products.
Property Damage: Protecting assets against unexpected events like fires, theft, or vandalism.
Lawsuits and Legal Costs: Coverage for legal fees and settlements in the event of customer disputes.

Even if you’re a smaller seller below Amazon’s threshold, SADLER Insurance ensures your business is protected against unforeseen incidents.

Amazon Insurance Requirements

To comply with Amazon’s Business Solutions Agreement, your insurance must meet the following criteria:

Key Requirements:

1. Coverage Limits: A minimum of $1M per occurrence and in aggregate, covering products liability, bodily injury, and property damage.

2. Policy Type: Commercial General Liability (CGL), Umbrella, or Excess Liability insurance.

3. Policy Scope: Must cover all products listed on Amazon and all operations of your business.

4. Additional Insured Clause: Your policy must name “Amazon.com Services LLC and its affiliates” as additional insureds.

5. Deductibles: Deductibles must not exceed $10,000 and must be clearly stated on the certificate.

Amazon requires proof of insurance to be submitted via Seller Central and periodically verified to ensure compliance. With SADLER, we handle the details so you can focus on growing your store.

What Happens Without Insurance?

Failing to meet Amazon’s insurance requirements could result in:

Account Suspension: Non-compliance may lead to temporary or permanent account deactivation.
Financial Exposure: Without insurance, you could face significant out-of-pocket expenses for legal claims.
Loss of Sales: Delays in providing proof of insurance could lead to lost revenue opportunities.

Don’t risk your store’s reputation or operations. SADLER Insurance ensures you meet Amazon’s standards and stay protected.

Comprehensive Coverage Tailored for Amazon Sellers

SADLER specializes in customized insurance policies designed specifically for Amazon sellers. Our coverage includes:

Product Liability Insurance: Protects against claims related to defective or harmful products, including bodily injury or property damage.

General Liability Insurance: Covers accidents or injuries related to your business operations, such as damage to third-party property.

Cyber Risk Insurance: Covers claims arising from liability from hacker attack such as release of confidential information as well as first party losses such as loss of business income and cyber extortion.

Inventory and Equipment Insurance: Covers loss or damage to your inventory during transit, in storage, or at Amazon fulfillment centers.

How to Get Started with SADLER

1. Assess Your Products: Understand which insurance category your items fall into.

2. Request a Quote: Submit one application and receive quotes tailored to your needs.

3. Add Amazon as Additional Insured: Ensure compliance with Amazon’s requirements.

4. Submit Proof: Upload your certificate of insurance via Seller Central for approval.

FAQs About Amazon Seller Insurance

Is Insurance Mandatory for All Amazon Sellers? Yes, insurance is required once your gross monthly sales exceed $10,000 or upon Amazon’s request.

Can SADLER Cover Sellers on Multiple Marketplaces? Absolutely. SADLER’s policies extend to cover products listed on Amazon, Walmart, eBay, Shopify, and other platforms.

How Can I Lower My Insurance Costs? SADLER offers advice on risk mitigation strategies, such as quality control and bundling coverage types, to reduce premiums.

Actual Lawsuits Against Amazon Sellers

Amazon sellers have faced several product liability lawsuits due to defective or hazardous products sold through the platform. Notable cases include:

1. Oberdorf v. Amazon.com Inc. (2019): Heather Oberdorf purchased a dog collar from a third-party seller on Amazon. The collar malfunctioned, causing a retractable leash to recoil and strike her face, resulting in permanent blindness in her left eye. Oberdorf sued both the third-party seller and Amazon. The Third Circuit Court of Appeals held that Amazon could be considered a “seller” under Pennsylvania law and thus subject to strict products liability. Justia Law

2. Loomis v. Amazon.com LLC (2021): Kisha Loomis purchased a hoverboard from a third-party seller on Amazon. The hoverboard caught fire, leading to significant property damage. Loomis sued Amazon, alleging strict products liability. The California Court of Appeal determined that Amazon could be held strictly liable for defective products sold by third-party vendors on its platform. Justia Law

3. Bolger v. Amazon.com LLC (2020): Angela Bolger bought a replacement laptop battery from a third-party seller on Amazon. The battery exploded, causing severe burns. Bolger sued Amazon, and the California Court of Appeal ruled that Amazon could be held strictly liable for defective products sold by third-party sellers on its site. HHJ Trial Attorneys

These cases highlight the evolving legal landscape concerning the liability of Amazon and its third-party sellers for defective products. Courts have increasingly scrutinized the role of e-commerce platforms in the distribution chain, potentially holding them accountable for product safety.

Advantages of Being an Amazon Seller

Becoming an Amazon seller offers numerous advantages for businesses and entrepreneurs looking to expand their market reach and grow their sales. Below are some key benefits:

1. Massive Customer Base: Amazon is one of the largest e-commerce platforms in the world, boasting millions of active customers globally. Selling on Amazon gives you access to this vast audience, significantly increasing your chances of finding and converting buyers.

2. Brand Exposure and Credibility: By listing your products on Amazon, you gain the benefit of associating with a trusted brand. Customers often prefer buying from Amazon due to its reputation for reliability, fast shipping, and excellent customer service. This can help build trust and boost sales for your business.

3. Ease of Setup and Operation: Amazon’s seller platform is designed to be user-friendly, allowing you to quickly list products, manage inventory, and monitor sales. For new sellers, Amazon provides step-by-step guides, tutorials, and resources to simplify the onboarding process.

4. Fulfillment by Amazon (FBA): Amazon offers its Fulfillment by Amazon (FBA) service, where they handle inventory storage, shipping, returns, and customer service on your behalf. FBA allows you to focus on growing your business while leveraging Amazon’s logistics expertise for fast and reliable order fulfillment.

5. Global Reach: Through programs like Amazon Global Selling, you can expand your business to international markets without having to set up physical stores or complex shipping arrangements. This is ideal for businesses looking to scale globally.

6. Analytics and Insights: Amazon provides sellers with detailed analytics tools to monitor sales performance, track customer behavior, and optimize listings. These insights can help you make data-driven decisions to improve your strategy and boost profitability.

7. Low Initial Investment: Unlike setting up a physical store or a standalone e-commerce site, selling on Amazon requires minimal upfront investment. You can start with as few products as you like and scale your inventory based on demand.

8. Marketing and Advertising Opportunities: Amazon offers a range of advertising solutions, such as Sponsored Products and Sponsored Brands, to help sellers promote their listings and increase visibility. These tools make it easier to target your ideal customers.

Amazon Sellers Can Trust SADLER To Provide The Right Combination Of Insurance Protection And Price

Don’t leave your business vulnerable to unexpected risks. Protect your operations, meet Amazon’s standards, and grow your store confidently with a SADLER insurance policy. Contact us today for a free quote and discover how easy it is to stay compliant and secure your success on Amazon Marketplace.