Amazon has certain threshold requirements for Professional Amazon Account sellers that specifies when the professional seller needs to have general product liability insurance.
Pro Merchant Insurance Requirements
Pro Merchants who sell on Amazon must provide proof of Commercial General Liability insurance when monthly sales exceeds a certain insurance threshold. This insurance, obtained at the merchant’s expense, shall cover up to $1,000,000 per occurrence and in the aggregate and must include product liability, bodily injury, or personal injury, property damage, and other requirements as stated in the Amazon Services Business Solutions Agreement. The insurance must indicate that “Amazon.com, Inc., and its affiliates and assignees” are added as additional insureds.
The Amazon Services Business Solutions Agreement states:
Insurance
If the gross proceeds from Your Transactions exceed the applicable Insurance Threshold during each month over any period of three (3) consecutive months, or otherwise if requested by us, then within thirty (30) days thereafter, you will maintain at your expense throughout the remainder of the Term for each applicable Elected Country commercial general, umbrella or excess liability insurance with the Insurance Limits per occurrence and in aggregate covering liabilities caused by or occurring in conjunction with the operation of your business, including products, products/completed operations and bodily injury, with policy(ies) naming Amazon and its assignees as additional insureds. At our request, you will provide to us certificates of insurance for the coverage to the following address: c/o Amazon, P.O. Box 81226, Seattle, WA 98108-1226, Attention: Risk Management.
Amazon fails to mention this insurance threshold directly in their professional merchant’s insurance requirement policy page which has led to confusion as to whether all professional account sellers need this insurance or if there is an exception to this requirement. There is indeed an exception – there is a threshold given is minimum volume of sales per month where you are required to purchase general liability insurance.
“Insurance Threshold” means the applicable one of the following:
- Ten Thousand Canadian Dollars ($10,000) (if the Elected Country is Canada),
- One Million Japanese Yen (¥1,000,000) (if the Elected Country is Japan),
- One Hundred Thousand Mexican Pesos ($100,000) (if the Elected Country is Mexico),
- Ten Thousand U.S. Dollars ($10,000) (if the Elected Country is the United States).
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