When setting up your Amazon business it’s easy to forget the insurance aspects which are there to protect you. It’s important you’re familiar with your liabilities and how an effective risk management strategy can protect your business.
We’ve teamed up with Online Sellers Insurance to get their advice on what insurance you need as an Amazon seller operating in global markets.
Product Liability Insurance
Potentially the most important factor to understand when it comes to insurance and risk management is that as an Amazon seller you’re deemed to be the manufacturer. So, if something goes wrong the liability is on you rather than your supplier.
Product Liability Insurance covers you against personal injury and/or property damage that your product may cause. Your policy will provide coverage for legal costs associated with defending yourself against a claim.
Amazon’s Terms of Service requires you to have a policy with a limit of USD $1 million. The insurance must also indicate that “Amazon.com, Inc., and its affiliates and assignees” are added as additional insureds.
Most local insurers won’t provide cover when over 50% of sales are made overseas, so be sure to seek cover and advice from specialists like Online Sellers Insurance.
Shipping & Cargo Insurance
Have you ever thought about what would happen to your business if containers were lost or damaged in transit? The World Shipping Council estimates that 1,582 containers are lost at sea each year^ meaning this type of business interruption is a real possibility. Damaged goods can also seriously impact your cash flow and brand, so purchasing adequate cover is of the utmost importance.
Amazon Shipping & Cargo Insurance by Online Sellers Insurance protects your shipments against any loss or damage during transit whether that be by sea, land or air. Policies can be for one-off shipments or annual, covering up to four shipments each year.
Speak with the Experts
Purchasing financial products like insurance is never a one-size-fits-all proposition. Always speak to professionals who can advise on the right products that are tailored to your business. Online Sellers Insurance specialise in providing insurance cover for Amazon sellers.
Currency Solutions for your business
WorldFirst open local currency receiving accounts for the countries you’re selling in, meaning you’ll be able to receive better exchange rates when repatriating your international marketplace and platform revenue and make transfers at times that suit you.
If you’re selling locally and sourcing your products internationally, we can help you achieve better exchange rates when paying your suppliers.
These comments are the views and opinions of the author and should not be construed as advice. You should act using your own information and judgement. Whilst information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. Please consider FX derivatives are high risk, provide volatile returns and do not guarantee profits.