Business Insurance Lapsed
My last month with gross sales over $10,000 was January 2021. Last month I let my insurance lapse as I no longer meet the requirement for needing it. This morning I get an automated letter telling me that I need to upload a new certificate of insurance.
HOWEVER, on the link provided in the email which takes me to the business insurance page, there's an advisory box that says, "Thank you for submitting your proof of insurance. No further action is required from you at this time. We will get back to you if any additional information is required."
I no longer meet the requirements for needing the insurance and all seller support can do is refer to the clause that says I have to get it if I'm asked to get it. Can someone from Amazon please weigh in on this?
If the response to cancelling your insurance is an auotmated letter telling you to get more insurance, does that mean that you always have to have insurance once you get it, no matter how small your sales are? That doesn't seem right.
Business Insurance Lapsed
My last month with gross sales over $10,000 was January 2021. Last month I let my insurance lapse as I no longer meet the requirement for needing it. This morning I get an automated letter telling me that I need to upload a new certificate of insurance.
HOWEVER, on the link provided in the email which takes me to the business insurance page, there's an advisory box that says, "Thank you for submitting your proof of insurance. No further action is required from you at this time. We will get back to you if any additional information is required."
I no longer meet the requirements for needing the insurance and all seller support can do is refer to the clause that says I have to get it if I'm asked to get it. Can someone from Amazon please weigh in on this?
If the response to cancelling your insurance is an auotmated letter telling you to get more insurance, does that mean that you always have to have insurance once you get it, no matter how small your sales are? That doesn't seem right.
0 replies
Seller_kIukTwdhvntAp
"That doesn't seem right. "
Amazon house, Amazon rules.
As far as I have seen once you are required you remain required.
There has been an ongoing discussion on that OTHER seller board about this topic as well.
It has been a mixed bag as some sellers there have NOT received notices despite lapsed insurance while others are being asked repeatedly for new COIs.
I received my second request today and have not responded yet. Amazon is still too much of my business to roll the dice on their not taking any actions!
Seller_4zBzdtgCyS9EI
It's in the small print. Amazon can require insurance no matter what your sales.....
Seller_RhlFjifXyN7NU
Addendum: I sell used books online and my gross annual receipts are about 50k. What possible scenario exists where Amazon needs to be protected by 1 million dollars of general liability for this virtually no risk practice?
Seller_xQAqE6K0eSCBc
all you have to do in exceed the $10,000 one time (any 1 month lifetime ) and it now counts forever as needing the insurance
Micah_Amazon
Hello @Seller_RhlFjifXyN7NU,
Thankyou for reaching out. I have provided the Commercial Liability Insurance Policy:
Commercial liability insurance will protect you from incidents resulting from the products you sell, and give you peace of mind while you focus on growing your business. Under section 9 of the Amazon Services Business Solutions Agreement, you must obtain and maintain commercial liability insurance within 30 days after exceeding USD 10,000 in gross proceeds in sales in one month on Amazon.com, or if otherwise requested by us.
You may purchase either commercial general, excess, or umbrella liability insurance. When you decide on an insurance provider, your policy should cover all products you list for sale in the Amazon.com store.
Kudos to the sellers in this thread that provided some great responses.
Cheers,
Micah
Seller_T2JXshOgTAMcy
Why would you not be insured in today's world?
Seller_2srXkS44rN39i
I exceeded $10k in sales 3 times, once each in 2018, 2019, and 2020. Twice by a couple hundred $$ and once less than $2 over. While I was never required to have it, I have it to protect myself. Its about $1,100 a year, and about half of that protects my inventory. While the amount seems fair considering my sales and value of inventory, changes in my business model will be occuring in the near future, and my inventory levels should drop consideably, and sales will likely follow that drop, at that point, I'll probably revisit my insurance levels and the cost will likely drop and still be worth it.
Seller_N1gTSljSnOAA4
I too no longer meet the minimum threshold for the policy requirements, but have been fearful to cancel due to the fact I never know how Amazon will respond, or to what extent the policy is needed.
Seller_IZ5lvEic6oGAx
Just ignore the notice. The deadline is not enforced and eventually they stop asking, if your sales aren't in the over $10,000 per month range.
For a year, they sent me a 30-day deadline for insurance, each month having a new 30-day deadline, then it stopped.
