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<\/figure>\n<\/div>\n\n\nIf you\u2019re an Amazon seller<\/a>, chances are you\u2019ve noticed some seismic changes across the e-commerce landscape these last few years.<\/p>\n\n\n\n Online retailers saw a significant uptick in sales during the COVID-19 pandemic as more and more customers swapped traditional brick-and-mortar shops for virtual shop fronts.<\/p>\n\n\n\n It\u2019s trend that seems set to stay. With online making up 23% of retail sales in the UK,<\/a> consumers have embraced the speed and convenience of shopping online. <\/p>\n\n\n\n And with global ecommerce giant Amazon retaining its crown as the UK\u2019s leading online marketplace<\/a>, that\u2019s nothing short of good news for your bottom line.<\/p>\n\n\n\n That said, there\u2019s a balance to be had. If something goes wrong and your business takes a hit, you could see your funds drain away quicker than you can say Jimminy Click-it.<\/p>\n\n\n\n What\u2019s more, UK-based sellers should bear in mind that Amazon\u2019s insurance requirements are different depending on how you sell and whether you do it on their UK or US website.<\/p>\n\n\n\n So, now might be the time to bag a little something for yourself for a change. Something in the shape of online retailers’ insurance<\/a> perhaps? Here\u2019s why.<\/p>\n\n\n\n <\/p>\n\n\n\n If the pandemic has taught us anything, it\u2019s to expect the unexpected.<\/p>\n\n\n\n Like a kitchen gadget that sparks a fire in someone\u2019s home after its batteries overheat. Or a customer who sues you after a heavy ornament slips out of its safety packaging and injures their foot.<\/p>\n\n\n\n Thankfully, accidents like these aren\u2019t in the main. But it takes only one of them to make a sizeable dent in your business.<\/p>\n\n\n\n Rightly or wrongly, you\u2019ll have to defend yourself \u2013 and pay out of your own pocket to do it, too. Plus you\u2019ll need to figure in court costs, legal representation and possibly also compensation. It could amount to several \u00a3thousands.<\/p>\n\n\n\n Unless you have an online retailers’ policy, that is, that can do all that for you.<\/p>\n\n\n\n <\/p>\n\n\n\n As a third-party seller, you can\u2019t assume the platform you sell on will pick up your legal tab if you get sued. Or that the injured party will chase after the bigger boys for compensation, and not you.<\/p>\n\n\n\n And if you occasionally ship to countries that err on the litigious side, like the US, there\u2019s every reason to be careful there, too.<\/p>\n\n\n\n That\u2019s where online retailers’ products liability insurance comes into play. It covers you if someone claims against you for damages. Because something you\u2019ve sold them has injured them, damaged their property, or made them sick.<\/p>\n\n\n\n You’ll have a case to argue \u2013 but you don\u2019t have to do it yourself. Products liability insurance covers the costs of a lawyer to represent you in court. If it turns out you have to pay damages to the injured party, it\u2019ll cover that too.<\/p>\n\n\n\n <\/p>\n\n\n\n According to Amazon\u2019s sellers\u2019 agreement<\/a>, \u201cyou will defend, indemnify, and hold harmless Amazon, our officers, directors, employees, and agents, against any third-party claim, loss, damage, settlement, cost, expense or other liability.\u201d<\/p>\n\n\n\n It’s a mouthful for sure. <\/p>\n\n\n\n It means that if you\u2019re an SME that’s selling and dispatching products using Amazon\u2019s website or services, and something goes wrong, Amazon won\u2019t take responsibility. The sale is between you and your customer. And so the buck stops with you.<\/p>\n\n\n\n Sure, Amazon\u2019s terms can be tricky to decode. But they’ve done the maths. They know that the more businesses that sign up to their platform, the greater their chances of running into litigation. It\u2019s why they have such strident Ts&Cs in the first place.<\/p>\n\n\n\n And why if your turnover tips over a certain amount, Amazon stipulates certain insurance requirements.<\/p>\n\n\n\n <\/p>\n\n\n\n If you\u2019re a UK-based online retailer selling on Amazon.co.uk or its European platforms (including Amazon France, Germany, and Spain), then online retailers\u2019 insurance can help protect your business.<\/p>\n\n\n\n How much insurance cover you’d need, though, depends on your sales turnover and on Amazon\u2019s requirements.<\/p>\n\n\n\n According to Amazon.co.uk<\/a>, Fulfilment-by-Amazon (FBA) sellers who earn over \u00a34,000 per month <\/strong>over three consecutive months need:<\/p>\n\n\n\n Needless to say, the insurance must be valid. That is, it should cover the dates you’ve been trading and have been bought from a reliable insurer.<\/p>\n\n\n\n It sounds like a huge ask. But having online retailers\u2019 insurance is worth it when you\u2019re selling on Amazon UK, regardless of whether you\u2019re an FBA seller or not. It covers their back as well as yours.<\/p>\n\n\n\n And it means you won\u2019t have to dig deep into your savings if a customer accuses your products of causing them loss, damage, or injury. If things escalate and sparks start to fly, you can bank on knowing your insurer will step in to settle the claim.<\/p>\n\n\n\n <\/p>\n\n\n\n Unsurprisingly, Amazon.com has stricter insurance requirements<\/a> for its UK-based sellers. Specifically, those who earn over $10,000 (roughly \u00a37,850) per month<\/strong>:<\/p>\n\n\n\n If your sales turnover is less than $10,000 per month then Amazon US doesn\u2019t require you to be insured. But, as selling to the US can be risky, we\u2019d recommend it anyway.<\/p>\n\n\n\n If you sell on both the UK and<\/em> US site, then some insurers will allow you to buy a US extension on your UK policy. Your business must be based in the UK, however, and your US turnover can’t exceed \u00a31 million.<\/p>\n\n\n\n <\/p>\n\n\n\n True or false? <\/p>\n\n\n\n Because of how they do things, most Amazon sellers have little to no contact with the public or anyone else connected to their business. So there\u2019s no need for insurance there.<\/p>\n\n\n\n False. <\/em><\/p>\n\n\n\n You might pack and ship your products from home. But you’ll still have couriers arrive at your door (and often in a rush). And though you might not be meeting face-to-face with suppliers or customers now, there\u2019s every chance you might do in the future.<\/p>\n\n\n\n Public liability insurance<\/a> covers you if a member of the public gets injured when coming a cropper with your business.<\/p>\n\n\n\n So, if the postie trips over a loose paving slab in your driveway and breaks a hip, or your pop-up stall topples over and takes someone down with it, you\u2019re not left shouldering the bill. Because public liability covers occasional selling at events and markets, too.<\/p>\n\n\n\n By the way, if you\u2019re a Fulfillment by Amazon (FBA) seller<\/a>, where Amazon store, pack, and ship your goods for you, you might find public liability useful. You’d still have to send your stock out to Amazon so they can store it. And your products will still be packed and handled by Amazon\u2019s workers before they\u2019re shipped.<\/p>\n\n\n\n <\/p>\n\n\n\n Lastly, it\u2019s worth thinking about one of your most important assets: your stock<\/a>. Without it, you can\u2019t sell. And if you can\u2019t sell, you don\u2019t have a business.<\/p>\n\n\n\n If you store, sell, pack, and ship most of your products from home, you might assume your home insurance policy would compensate you if any of it gets lost, damaged, or stolen.<\/p>\n\n\n\n Except there\u2019s every chance it won\u2019t. Home insurance is designed to cover your home contents. Insurers generally won\u2019t cover your business losses as well. <\/p>\n\n\n\n Stock and property insuran<\/a>ce<\/a>, on the other hand, takes care of any stock or equipment connected with your business.<\/p>\n\n\n\n It pays to repair or replace it if light fingers or a burst pipe mean you don\u2019t have any stock to sell. And it also covers the things you’d need to sell in the first place (your PC, printer, desk etc)<\/p>\n\n\n\n <\/p>\n\n\n\n We know buying online retailers\u2019 insurance can be a tough sell. Especially if you\u2019ve only started trading relatively recently and your turnover\u2019s still low.<\/p>\n\n\n\n Deciding how much cover you’d need can be tricky, too. If you don\u2019t meet Amazon\u2019s FBA seller requirements, but you still want protection, how much should you get?<\/p>\n\n\n\n Most online retailers’ public liability policies include cover for up to \u00a31 million as standard, but it\u2019s worth having a conversation with your insurer or broker if you\u2019re unsure of anything.<\/p>\n\n\n\n For more guidance, check out our info on online retailers’ insurance<\/a>. Or call the team up on\u00a00345 222 5391<\/strong> if you’d like to talk anything through.<\/p>\n\n\n\n Image used under license from Shutterstock.<\/em><\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" If you\u2019re an Amazon seller, chances are you\u2019ve noticed some seismic changes across the e-commerce landscape these last few years. Online retailers saw a significant uptick in sales during the COVID-19 pandemic as more and more customers swapped traditional brick-and-mortar … Continue reading Who’d have thunk it?<\/h2>\n\n\n\n
Why do Amazon sellers need insurance?<\/h2>\n\n\n\n
Do Amazon sellers need insurance?<\/h2>\n\n\n\n
Insurance requirements for Amazon UK sellers<\/h2>\n\n\n\n
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Insurance requirements for Amazon US sellers<\/h2>\n\n\n\n
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Tough break<\/h2>\n\n\n\n
Good buy or goodbye?<\/h2>\n\n\n\n
One more thing to wrap up<\/h2>\n\n\n\n