What Type of Insurance Coverage for the Amazon Vendor?

If you are involved in e-commerce by selling online, you might realize that you face similar risks as other business. Those involved in the Amazon marketplace are required by the company to obtain a certain amount of business coverage up to $1,000 per occurrence:

• Commercial general liability insurance

• Bodily injury insurance

• Personal injury insurance

• Property insurance

Amazon vendors need to realize that this is limited coverage that will not protect them if losses necessitate a larger claim. Like any business person, those involved in e-commerce need to assess their needs and acquire appropriate related insurance protection.

General Liability

General liability insurance is a basic coverage for the online seller – as it is traditional brick and mortar retail outlets. It is there to protect your business from liability to:

– Injuries

– Negligence

– Accidents

If a related lawsuit occurs, this insurance can pay for payment you are judged to pay and legal expenses.

Products liability coverage generally is tied to this policy. It protects the manufacturer or seller in regard to bodily injury or property damage to a third party that occurs because of a faulty product.

There are instances, however, when this form of coverage does not help. Why? In the event a seller is not rated appropriately and files a claim, he or she may get a ‘no’ from the insurer.

Take the case of Mary – an Amazon vendor that successfully sold skin care products to an online market.

All was fine, business-wise, for Mary until the fateful day when a consumer sued her in relation to a serious skin flare-up credited to the creams sent to her by Mary. When Mary filed a claim, she was in for a shock: the insurance company denied coverage because her policy was wrongly rated as an internet retailer. As someone that placed her company labels on her creams, she should have been rated ‘a manufacturer’!

Too bad her agent did not catch the mistake! The financial consequences had a far-reaching effect, eventually forcing her to file for bankruptcy.

While this spells out the urgency of being on the lookout for problems with a policy, there are other forms of coverage that an Amazon seller needs to be highly cognizant of.

Other Policies for the Amazon Seller

One of the chief concerns any Amazon seller has is the possibility of being suspended from the Amazon network of sellers. If this occurs, the loss of income can be substantial. Amazon Suspension Insurance Policy is the number one coverage that is recommended for the industry across the board.

Other insurance policies to consider are:

• Business Auto

• Workers Comp

• Umbrella/Excess

• Cyber Liability

• Ocean Marine

• EPLI

Of course, nothing takes the place of speaking to an insurance professional that will steer you to a tailored insurance program made for you.

Getting the Right Type of Commercial Transportation Insurance

The world of commercial auto and transportation insurance is a massive one. There are literally dozens, if not even hundreds, of different types of policies and coverages, plans of all shapes, sizes, and scales. That’s why you need to make sure you find the right policy for you, based on a huge number of different factors. Here’s a beginning look at how commercial transportation insurance varies among so many different types of plans.

One of the first places to look is the industry you’re in, and the type of business you’re operating. The scope of this alone may be massive. For instance, with the same 18-wheeler truck, you could be delivering goods within a state, or across the country. Or, you could be a household mover either locally or nationally, or you could be performing all other types of tasks. The industry you’re in, and the resulting locations you’re in and materials you’re moving, all factor in heavily in your coverage.

Along with that, also consider the way your business is being run, or your level of involvement. For example, are you the owner of a fleet of different trucks? Or are you the owner operator of one truck, working with clients directly? Maybe you don’t own your vehicle, and you’re either a contractor, or you work for an employer and his fleet of vehicles. All of these require different commercial auto insurance policies.

Of course, the largest area of difference when it comes to commercial transportation insurance coverage is the type of vehicle that is being operated, in tandem with the above variances of industry type and ownership or involvement status. The range of vehicles requiring commercial insurance is absolutely massive.

Sure, there are big rig trucks, but even within that, they could be refrigerated trucks, flat beds, or even log haulers or auto transporters. You need commercial insurance for your regular pickup, van, or even car, if you’re contracting or doing other work for your business within your vehicle. Then there’s the huge range of specialty vehicles, which includes everything from garbage trucks to HAZMAT vehicles, food trucks to non emergency medical transportation, and so much more.

Finally, keep in mind that much of this is fluid. There are always changing regulations, as well as new entrants to the market. Look no further than the complex area of Uber and ride share insurance regulations in this regard.

Make sure you find the correct type of commercial auto insurance for your very specific needs based on all of the above. If this seems like a lot to sort through, and certainly it is, be sure to work with an experienced professional who can get you a fair quote on a tailor-made policy for you, your vehicle, and your business.