If you are involved in e-commerce by selling online, you may realize that you are facing risks similar to those of other companies. Those involved in the Amazon market are required by the company to obtain a certain amount of business coverage of up to $ 1,000 per event:
• Commercial liability insurance
• Personal injury insurance
• Personal accident insurance
• Property insurance
Amazon vendors need to realize that this is limited coverage that will not protect them if losses require a larger complaint. Like any businessman, those involved in e-commerce must assess their needs and acquire adequate related insurance protection.
General liability insurance is a basic coverage for the online seller, as they are traditional brick and mortar outlets. It is there to protect your company from the responsibility of:
If a related cause occurs, this insurance can pay for the payment you are considering paying and the legal fees.
Product liability coverage is generally tied to this policy. It protects the manufacturer or seller against personal injury or material damage to third parties that occur due to a defective product.
There are cases, however, in which this form of coverage doesn’t help. Because? In the event that a seller is not properly assessed and submits a complaint, he or she may get a “no” from the insurer.
Take the case of Mary, an Amazon vendor who has successfully sold skincare products to an online market.
Everything was fine, as far as business is concerned, for Mary until the fateful day when a consumer sued her in relation to a serious flare-up of the skin attributed to the creams that were sent to her by Mary. When Mary filed a complaint, she was shocked: the insurance company denied coverage because her policy had been incorrectly classified as an Internet retailer. Like someone who put his company’s labels on his creams, he should have been classified as a “producer”!
Too bad his agent didn’t catch the mistake! The financial consequences had a far-reaching effect, eventually forcing it to file for bankruptcy.
While this clearly explains the urgency of looking for problems with a policy, there are other forms of coverage that an Amazon seller must be highly aware of.
Other policies for the Amazon seller
One of the main concerns that every Amazon seller has is the possibility of being suspended from the Amazon seller network. In this case, the loss of income can be substantial. The Amazon Suspension insurance policy is the number one coverage recommended for the industry across the board.
Other insurance policies to consider are:
• Company car
• Workers comp
• Umbrella / excess
• IT responsibility
• Ocean Marine
Of course, nothing replaces talking to an insurance professional who will guide you towards an insurance program tailored for you.