Amazon Insurance Accelerator Program — All You Need To Know
As an Amazon seller, handling risks wisely is crucial for your business to thrive. Selling on Amazon comes with various challenges. Having the right insurance coverage is vital to safeguard your business from unexpected situations that could result in financial setbacks.
Amazon wants to make it easy for you to get that insurance. They have developed a platform where Amazon businesses like yours can effortlessly buy product liability coverage — Amazon Insurance Accelerator. And if you're wondering about its benefits, we'll explain all of that in this article. Get ready to make your Amazon selling journey smoother and more successful.
What Is Amazon Insurance Accelerator?
The Amazon Insurance Accelerator program brings together approved insurance providers and sellers, creating a platform to obtain liability insurance at competitive rates. This program aims to simplify and expedite the process of acquiring product liability insurance for Amazon sellers.
Amazon Insurance Accelerator operates as a selected network of trusted insurance providers collaborating with Amazon businesses. Through the Amazon Insurance Accelerator program, sellers based in the United States can effortlessly obtain insurance quotes and purchase policies specifically tailored to their unique business requirements.
The participating insurers are vetted by Amazon, ensuring they meet the platform's standards. Consequently, sellers no longer need to evaluate insurers individually or investigate policy details to uncover potential hidden clauses.
Note. If your gross sales surpass $10,000 in a month or if you receive a request from Amazon, it is compulsory for you as a seller to possess commercial liability insurance following the Amazon Services Business Solutions Agreement. It is required that you obtain insurance within 30 days of surpassing this threshold.
Pros and Cons of Amazon Insurance Accelerator
Amazon FBA insurance offers a number of benefits. However, you must keep in mind its shortcomings as well.
Amazon's сlaims сoverage
Through the Amazon Insurance Accelerator program, sellers receive the advantage of enhanced claims coverage. In the event of eligible claims, Amazon takes on the responsibility for amounts up to $1,000, providing sellers with added peace of mind and protection.
The Amazon Insurance Accelerator program offers sellers a pre-vetted list of insurance providers, ensuring their reliability and credibility. Sellers can conveniently compare quotes and policies from these approved providers, streamlining the process and enabling them to make informed decisions tailored to their specific needs.
Сoverage outside Amazon
The Amazon Insurance Accelerator program introduces insurance policies that offer product coverage even when sold outside the Amazon marketplace. This extended coverage ensures that sellers can safeguard their products and business operations, regardless of the sales channel, providing comprehensive protection and flexibility.
Limited insurance provider selection
One drawback of the Amazon Insurance Accelerator program is the smaller selection of insurance providers available to sellers. The program currently offers a limited pool of providers, which may limit sellers' options when it comes to choosing an insurance provider that best suits their specific needs.
Not all countries covered
Currently, the Amazon Insurance Accelerator program doesn’t have global coverage. This geographical restriction can be a disadvantage for sellers operating outside the supported countries, as they cannot access the benefits and streamlined processes offered by the program.
Lack of pre-defined rates
Another downside of the Amazon Insurance Accelerator program is the absence of pre-defined rates for insurance coverage. Without pre-set rates, sellers may find it challenging to anticipate and budget for insurance costs, as they have to go through the process of obtaining quotes from providers without a clear baseline for comparison.
How Does Insurance Accelerator Work?
When a seller on Amazon reaches $10,000 in sales within a single month, they are required to obtain product liability insurance. By opting to become an Amazon Insurance Accelerator participant, sellers can navigate to Seller Central and access the program by going to the Business Insurance section. This interface allows them to compare quotes and policies from various providers and select the most suitable insurer.
In the event of a customer being injured, falling ill, or experiencing property damage due to a product purchased on Amazon, the company will cover damages up to $1,000 if the seller has a valid property liability insurance policy. Damages exceeding $1,000 will be redirected to the seller's insurer for further processing and resolution.
How to Get Insurance via Insurance Accelerator?
To get insurance from the Amazon Insurance Accelerator program, follow the steps below.
- Step 1. Access Seller Central and navigate to Business Insurance
Go to Seller Central and click on "Settings." Then, select "Account Info" and choose "Business Insurance" > "Get Insurance." You can also directly access the page using this link.
- Step 2. Compare quotes and policies
Within the Business Insurance section, you will find options to compare quotes and policies offered by different insurance providers. Carefully review the details, coverage options, and pricing to select the insurance policy that best fits your needs.
- Step 3. Upload proof of insurance
Proceed to the "Proof of Insurance" tab. This is where you need to upload your proof of insurance, specifically the Certificate of Insurance you receive once you have been approved for a policy. It serves as documentation of your coverage. Tick the box "I bought insurance from Amazon Accelerator participant" and upload your proof of insurance.
Note. Even if you obtained your insurance from a provider outside of Amazon's network, you must still upload your Certificate of Insurance in the Business Insurance section on Seller Central. That ensures that Amazon has a record of your coverage, regardless of the provider you choose.
How Much Is Amazon Insurance?
Product liability insurance is a requirement for selling on Amazon, and the cost of your insurance quote will be based on your estimated annual revenue. Rates can vary significantly, typically ranging from 0.25% to 1% of revenue. On average, sellers can expect to pay between $500 and $2,000 per year for this coverage.
List of Insurance Accelerator Providers
Amazon has partnered with Marsh, a leading insurance broker, to establish a network of vetted insurance providers. These providers offer a range of insurance options tailored to the needs of Amazon sellers.
List of Insurance Accelerator participants
- Harborway Insurance underwritten by Spinnaker Insurance Company;
- Liberty Mutual Insurance;
- Markel and Travelers;
- Bold Penguin;
- Simply Business, Inc.;
- Next Insurance.
What sellers must get insurance on Amazon?
Sellers on Amazon must obtain product liability insurance if their gross proceeds in sales exceed $10,000 in a month or if they are requested to do so as per the Amazon Services Business Solutions Agreement. It is mandatory for sellers to comply with this requirement to ensure coverage for potential liabilities arising from their products.
What insurance do I need for Amazon FBA?
For Amazon FBA (Fulfillment by Amazon) sellers, it is typically recommended to have product liability insurance to protect against potential liabilities arising from the products you sell. This type of insurance helps cover costs related to injuries, property damage, or other issues caused by your products.
Can I sell on Amazon without insurance?
While it is possible to sell on Amazon without insurance, it is generally not advisable. Amazon strongly recommends sellers have product liability insurance, significantly if they exceed a certain sales threshold, as it helps protect against potential liabilities and provides added security for both the seller and the customers.
How much does Amazon insurance cost?
The cost of Amazon insurance can vary depending on factors such as the seller's estimated annual revenue and the specific insurance provider chosen. Generally, rates fall within the range of 0.25% to 1% of revenue, with average costs typically ranging from $500 to $2,000 per year.
The Insurance Accelerator program offered by Amazon provides sellers a streamlined and convenient way to obtain the necessary product liability insurance. By partnering with vetted insurance providers, Amazon simplifies the process of comparing quotes and policies, helping sellers find coverage that fits their specific needs. It is an essential step for sellers on Amazon to protect their business and comply with the platform's requirements. So, if you're a seller looking for reliable insurance options, consider exploring the Amazon Insurance Accelerator program to ensure peace of mind and safeguard your business against potential risks.
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