Best Amazon Seller Insurance of 2022

Bryan Keith

Whether you use Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM) to deliver your products, you are liable for any type of injury or property damage a customer sustains from using your product. We’ve evaluated the best amazon seller insurance providers based on coverage, financial stability, customer satisfaction, and overall quality.

Affordable plans and coverage provided within minutes

$2,000,000

Coverage Up To

$0 - $2,000

Deductibles

Overview

Next Insurance leverages AI technology to streamline the process to purchase insurance, track claims, and manage policies at no additional cost.

What we like

  • Affordable insurance plans
  • Customized coverage to fit your business
  • Get covered within minutes
  • Near instant access to proof of insurance
  • Quick and easy to process claims

What we don't

  • Not available in New York

Covers a wide range of industries

$2,000,000

Coverage Up To

$1,000+

Deductibles

Overview

Coverwallet began its journey in New York City in 2015 operating under the Aon Insurance banner. At Coverwallet, you can access everything you need to keep your company well-protected at an unbeatable price.

What we like

  • A skilled advisor to assist you
  • Free quotes from multiple insurance carriers
  • Covers low risk to even some high risk industries
  • Online account management

What we don't

  • No brick-and-mortar offices
  • Deductible costs

Customized solution to fit your business needs

$2,000,000

Coverage Up To

$0 - $10,000

Deductibles

Overview

With a 100-year history of insuring businesses, Hiscox is well-known across America and globally. With more than 500,000 small business customers, Hiscox is fully aware and trained in the unique risks a business can face.

What we like

  • Established insurance company
  • Dual auto insurance
  • Customizable insurance for over 180 industries
  • Deductibles starting at $0
  • Affordable rates

What we don't

  • Limited US offices
  • Coverage limited to $2 million online

Flexible coverage by the year, month, day, or by the job

$2,000,000

Coverage Up To

$0 - $10,000

Deductibles

Overview

Thimble provides business insurance that can be tailored to your business by the year, month, day, or even the job. At Thimble, the process to getting the right business insurance is simple, scalable, and flexible.

What we like

  • Scheduled coverage options
  • Coverage by the job available
  • Buy a policy online within minutes
  • No hidden fees
  • Affordable plans
  • Drone insurance

What we don't

  • Not available in New York

Tailored Amazon seller insurance

$1,000,000+

Coverage Up To

$100+

Deductibles

Overview

Spott will ensure that your policy coverage is tailored to your business while complying with Amazon’s Terms and Conditions. They also track changes to Amazon’s Terms and Conditions to identify potential issues with listings before a suspension.

What we like

  • Tailored eCommerce insurance
  • Liability insurance for Amazon sellers
  • Store Suspension coverage
  • Compares leading insurance carriers
  • Flexible coverage options and payment plans
  • Knowledgeable about Amazon’s rules and policies

What we don't

  • Limited physical offices

What is Amazon seller insurance?

Like all businesses, an Amazon seller account on their platform is a business, which makes insurance necessary to protect it. Amazon seller insurance can help you avoid a financial hole due to claims against your business. If your new electric knife short circuits and turns on while someone is cleaning the blade, you are liable for their injury. If you have Amazon seller insurance though, you are covered.

Who needs Amazon seller insurance?

All Pro Merchant seller accounts on Amazon with gross revenue of $10,000 or more are required to have Amazon seller insurance. Even if you are not a pro seller, it is still recommended to get insurance if something bad happens.

What insurance do Amazon seller businesses need?

Amazon sellers have a few different types of policies that can cover most of their bases in terms of risk. Common ones include general liability insurance, commercial auto insurance, and others. Depending on whether you use Amazon’s FBA (Fulfillment by Amazon) services, you may also need coverage for your property and/or inventory on-site to mitigate your risk.

Here are common types of policies:

General liability insurance

This type of policy can help cover damages to third parties through products you sell on Amazon. It can protect against a wide variety of things such as an injury due to faulty products, accidents, copyright infringement, and more.

Commercial auto insurance

If you use a vehicle for day-to-day operations, you should consider a commercial auto insurance policy. It will protect you and your business from any claims made due to auto accidents. Most states require this insurance from businesses if they have a vehicle.

Workers’ compensation insurance

Workers’ compensation insurance will ensure that an employee that gets injured on the job will have medical bills and rehabilitation paid for, as well as any lost wages. Also, it is required in most states. This is only relevant if your business has employees.

Commercial property insurance

This coverage can help protect your inventory, gear, and even the building if you are the owner. If your assets are damaged due to water, fire, vandalism, or theft, commercial property insurance can help pay for the repairs.

Cyber liability insurance

This type of policy can help your business pull through if it is attacked by hackers that stole sensitive information such as credit cards and social security numbers.

What are the limits of Amazon seller insurance?

As an Amazon seller, once you surpass $10,000 in sales in 30 days, Amazon requires you to provide proof of a product liability policy that has a minimum coverage of $1,000,000. The limit is based on per occurrence and covers all products listed on the Amazon marketplace. Furthermore, the policy should have a deductible of less than $10,000 to be compliant with Amazon’s Terms of Service. It helps mitigate the risk that Amazon assumes as the selling platform.

How much does Amazon seller insurance cost?

Here are some of the following costs for various policies:

  • General liability insurance: Amazon seller businesses can expect to pay between $23 – $59 per month. Usually costs get higher depending on product sources, materials, etc.
  • Commercial auto insurance: Amazon sellers can insure their vehicles at around $99 per month for commercial auto insurance policies with lower limits. Higher limits or vehicle quantity and type will increase the premium.
  • Workers’ compensation insurance: Worker’s compensation insurance can start as low as $47 per month for online businesses. Prices will increase based on the size of the business and history of claims among other factors. Employer’s liability insurance is usually included in the workers’ compensation insurance policy and is covered by the premium.
  • Commercial property insurance: If you are not opting for Fulfillment by Amazon services and have inventory at your property, commercial property insurance can start as low as $63 per month. This is the median for commercial property insurance that is affordable for most Amazon seller businesses.
  • Cyber liability insurance: The median cost runs around $140 per month for cyber liability insurance. It should be considered if your business has sensitive information that could lead to a claim if leaked.

How to choose the best Amazon seller insurance

Amazon is one of the biggest retailers in the world, so no wonder so many people list their products on the platform. There are lots of variables to consider the best policy for your business. Here are a few useful tips that can help:

  • Works with Amazon: Look for a provider that is already working with Amazon and can easily integrate your policy into Amazon’s requirements.
  • Customize policy: The provider should be able to customize their product to best suit the needs of your business. A provider that is not willing to work with you should not be the provider you work with.
  • Customer feedback: See what customers really think about them, check out reviews for each provider to get insight into their customer service and customer satisfaction.