Did you know?
Within the next 6 months, 20% of new Amazon sellers will receive a requirement to get liability insurance. If you’ve already got liability insurance for your Amazon store, this may not be news to you. If on the other hand, you are new to Amazon, you may be surprised to find out that the marketplace mandates sellers from a certain size and up to purchase liability insurance, and include Amazon as an additional insured party in the policy. Liability insurance is there to make sure that you, as a seller, as well as Amazon, as a marketplace, are insured in case a customer makes a damages claim against a product they purchase from you.
What does this mean for new Amazon Sellers?
So if you’re an Amazon seller, and you don’t yet have liability insurance, you might be wondering what this means for you. We’re here to tell you the answer. If your store is growing and you’re seeing a rise in sales and revenue, Amazon knows it, and therefore, once you reach a certain threshold, you can expect to receive a notification from them, requiring you to provide insurance.
But insurance isn’t only a must if Amazon requires it. Studies have shown that businesses with liability insurance are much less likely to suffer from unexpected losses, than uninsured businesses. Therefore, as an eCommerce seller, you owe it to yourself and your business potential, to get insurance as early on as possible.
Why rush to get insured?
You might be thinking to yourself that as a new business in the game, you don’t need insurance right now and that it makes sense to delay buying a policy till you really have to. But here’s the thing- insurance is a bit like getting a loan from a bank, the longer your relationship is with your insurer, the better the rate you can expect to receive from them.
Just like your bank will give you perks and lower interest rates if you have an established line of credit with them, your insurance carrier will give you a better-priced insurance premium if they have known you for longer. If you have big plans for your business, the best thing you can do for your business in the future is to get liability insurance today. That way, you can ensure that even when you’re making six figures and up, your liability insurance premium won’t be higher than necessary.
Where to get insured?
Now comes the main question- where is the best place to purchase liability insurance for your Amazon business? Without a doubt, Spott is the best place to purchase liability insurance for your Amazon store. As the only insurance expert in the eCommerce industry, Spott can provide you with the best-priced quotes for your business and it only takes a few minutes. Unlike regular insurance brokers, Spott’s unique platform means never having to fill out tedious forms or provide irrelevant information and documents. Start today to get a quote and protect your business as you continue to grow.