Do You Need Business Insurance to Sell on Amazon?

Do you need business insurance to sell on Amazon?
Amazon requires sellers to have $1M in coverage. You must have Commercial General Liability (CGL), Umbrella and/or Excess Liability Insurance coverage with limits of not less than: $1,000,000 per occurrence, $1,000,000 in the aggregate for products and completed operations, and $1,000,000 in the general aggregate.
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Selling on Amazon has grown to be a popular choice for business owners and entrepreneurs trying to expand their customer base and boost sales. However, there are hazards associated with every business endeavor. This raises the question of whether or not Amazon sellers require business insurance.

The short answer is no, having company insurance is not necessary to sell on Amazon. Although it is not required, it is strongly advised because it can shield you and your company from potential financial losses in the event of mishaps, lawsuits, or other unanticipated events.

Without insurance, you run the risk of being held responsible for any losses, injuries, or other harm resulting from your business operations. This can result in exorbitant litigation costs, settlements, or verdicts that could put your company out of business. You can concentrate on expanding your business by getting financial security and peace of mind from business insurance.

Other insurance coverage may be required in addition to general liability insurance, depending on the items you sell and the nature of your company. For instance, if you offer physical things, product liability insurance may be necessary to guard against any flaws or injuries brought on by your products. If you employ people, you might require workers’ compensation insurance to pay for any illnesses or injuries that arise at work.

It’s significant to note that depending on the platform you sell on, different insurance needs could apply. For instance, Etsy’s Seller insurance program does give some insurance for merchants, but it might not cover all kinds of losses. It could be a good idea to think about getting more insurance in this situation.

In general, the answer to the query of whether insurance can be added after printing a shipping label is yes. After printing your label, you can usually purchase additional insurance choices offered by the majority of shipping companies. In the event that your shipments are stolen, lost, or damaged while in transit, this may offer further insurance.

Despite the fact that it is not necessarily necessary to have business insurance in order to sell on Amazon, it is strongly advised in order to safeguard both your personal and business finances. It’s critical to evaluate the risks associated with your business operations and decide what kinds of insurance coverage may be required. You can assure the long-term success and sustainability of your company by taking the essential steps.

FAQ
Do you need insurance if you have a website?

Yes, if you run a website, insurance can be necessary. Depending on the purpose of your website and the kind of business you do there, you’ll need different kinds of insurance. For instance, general liability insurance may be necessary if you sell goods or services online in order to guard against claims of property damage or bodily harm. Additionally, you could want cyber liability insurance to guard against data breaches and other cyber-related risks if your website gathers personal information from users. To ascertain the precise insurance requirements for your website and business, it is crucial to talk with an insurance consultant.