Amazon has issued a significant update affecting sellers on its platform, as outlined in Section 8 of the Amazon Services Business Solutions Agreement. Effective from May 29, 2024, sellers must secure and maintain commercial liability insurance if their gross proceeds exceed certain thresholds. Sellers are also required to list Amazon as an additional insured party on their policy.
The insurance thresholds are as follows:
€5,000 for transactions on Amazon’s German, French, Italian, Spanish, Belgian, or Dutch sites.
kr 50,000 for transactions on Amazon’s Swedish site.
PLN 22,500 for transactions on Amazon’s Polish site.
Previously, this requirement applied only to products sold through Fulfillment by Amazon (FBA). The updated policy now includes all products, including those fulfilled directly by sellers. This change will result in sellers who fulfill orders independently receiving new insurance requirements.
The updated Clause 8 in the Amazon Services Europe Business Solutions Agreement will take into account sales across Amazon’s European stores for determining if the insurance threshold is met.
Adding to the complexity, sellers must ensure their insurance provider notifies Amazon of any policy changes, including cancellations or modifications, with a minimum of 30 days’ notice. Amazon has recommended the insurance broker Simply Business as a resource for obtaining the necessary coverage.
For U.S. sellers operating in the EU or UK, it’s crucial to verify with your insurance provider that your existing policy covers claims in these regions.
For further details on compliance with Amazon’s insurance requirements, sellers should refer to the Commercial Liability Insurance Policy guidelines.
