What Insurance Do Edmonton Amazon Sellers Need?
Are you an Amazon seller in Edmonton? Did you know that Amazon requires all Canadian online retail sellers to be insured if you have $10,000 or more in monthly sales?
As an Edmonton Amazon seller, when you buy an insurance policy that meets the Amazon seller insurance requirements for Pro Merchants, it will include liability insurance of at least $1 million per occurrence and $2 million in aggregate. It covers liabilities caused by or that happen in conjunction with your online retail business, including products, property damage, and bodily injury. Amazon Pro Merchants are large volume sellers.
If you’re not a Pro Merchant on Amazon, it’s still a good idea to get business liability insurance coverage as a smaller seller to protect your Edmonton online business in case something goes wrong.
If you are an Amazon seller located in Edmonton and the surrounding area, your Western Financial Group business insurance expert will give you top-notch commercial insurance advice and ways to save on insurance for your online business.
How does Amazon online seller insurance protect you?
As an Edmonton Amazon seller, you are protected from the risks and costs associated with third-party claims or lawsuits.
Here are 3 examples:
- You ship a product to an Edmonton customer and one of the parts falls off and her child chokes on it. Product liability insurance typically covers manufacturing defects and a lack of safety warnings.
- A fire broke out at the Edmonton warehouse where you store your goods for sale on Amazon. Commercial property insurance helps cover the damage from the fire.
- Your computer system is hacked and your customers’ financial data is stolen. Cyber liability insurance helps protect your business financially after an attack by cybercriminals. Cyber breaches are typically not covered by general liability insurance for your Edmonton business.
A comprehensive Amazon sellers’ insurance package typically includes these insurance coverages:
Product liability insurance: Product liability insurance is a must-have for Edmonton Amazon retailers.
It typically covers design defects, manufacturing defects, incorrect labels, or a lack of safety warnings.
Commercial general liability (CGL) insurance: CGL insurance is often called slip-and-fall insurance because this type of insurance helps pay for any uninsured medical bills, your legal fees, and any settlement should a customer be injured or their property be damaged or stolen.
As an Edmonton Amazon seller, even though you have an online business, you may attend events or trade shows for additional sales and CGL would protect you in these in-person situations.
Cyber liability insurance: Cyber liability insurance is one of the most critical coverages for Edmonton online sellers to have. If you are storing your customers’ data, cyber liability insurance cyber liability insurance helps protect you financially.
Depending on the size of the breach and the information that was taken, the customers who are affected can hold your business liable and sue for damages. That’s where cyber insurance can protect your online business.
Commercial property insurance: If you store your Amazon product inventory in a physical location like a warehouse, you need commercial property insurance.
Commercial property insurance protects you from events like fire, vandalism, and theft.
How much does Amazon Insurance cost?
It will depend on what you are selling and your annual revenue as an Edmonton Amazon seller.
Higher-risk products such as anything that is consumable or goes on your body or is made for children may have a high insurance premium. Imported products also have higher liability risks, which can also increase the cost of your Amazon seller insurance.
Did you know? If you sell on eBay, Shopify, Etsy, or another online retail platform, it’s recommended that you have online retailer liability insurance coverage.
Here’s an insurance checklist for Edmonton online businesses:
- Do you have the best Edmonton business insurance rate that suits your work?
- Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
- Are you or your employees using personal vehicles for work?
What do I do if there’s a claim against my Edmonton business?
- Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
- Know your policy so that when you contact your broker you are familiar with what will be covered or not.
- Document the damage. Take photos right away and write down what happened.
- Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
- Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
- Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.
Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get you Amazon seller insurance for your Edmonton online business. Our experts are available now to help you navigate the business insurance journey.
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