Breaking News: Amazon Enforcing Proof of Insurance for Gross Sales Reaching $10,000
Amazon is sending notices to you, reminding you that you need to have insurance if you’re doing over $10,000 in sales.
This is part of your agreement with Amazon. It is clearly in the terms of service. The contract is actually called a business solutions agreement. Insurance is required.
So what’s the good news? The good news is that this type of possible suspension is most likely entirely preventable. Before you get the notice, before Amazon sends you that email saying, “Show us your certificate of insurance,” you have time to buy insurance. So get your certificate of insurance right now, avoid getting suspended later.
The only insurance broker in the entire country that we recommend is Ashlin Hadden Insurance, and I’ll tell you why:
Number one, she focuses solely on e-commerce businesses.
Number two, I have personal experience using her.
Not only do we have our insurance with Ashlin, but about a month or so ago when we had an issue, I literally texted Ashlin from a helicopter, getting airlifted with a kid who got hurt riding an ATV at my house, and she responded immediately. I immediately texted her, “Hey, Ashlin, I’m in a helicopter. This kid got hurt. I want to make sure my insurance is going to cover the cost of the airlift to a hospital,” And she wrote back to me. It was a weekend, she was at a dinner party, and this is the service that she provides.
So if you want to prevent your account from being suspended for not having insurance, contact Ashlin. Make sure you get proof of insurance in place.
Many sellers don’t know the next bit of information that I’m going to give to you about what insurance actually provides to you. You may know this, you may not. Most people don’t. They don’t know one of the main benefits of actually having an insurance policy…
One of the main benefits of having insurance is that if you get a letter from a lawyer, if you are aware of a claim, if someone gets hurt, even before there’s anybody suing you, you can call up your insurance broker. You can call up Ashlin. They put the claim through, and they assign lawyers to defend your interests. You don’t have to write a check for 5, 10, or $15,000. The insurance company hires a lawyer to defend you. It’s called defense. Now, the obligation to defend an insured is much broader than the obligation to pay for damages, which leads us to the second thing you get from insurance.
So those are the 2 huge things that you get from buying an insurance policy from Ashlin Hadden. You get the obligation to defend you & if anyone was hurt or any property damage was caused by your product, the insurance company is responsible for it.
Last story before wrapping up today’s news has to do with bidets.
Now, when this pandemic first struck, there were many people around the United States buying bidets for their toilet seat so that they got washed instead of using toilet paper. They had a bidet, but what happened? Some of these bidets caused water damage because they leaked.
If you were one of these sellers who got a claim for property damage for 5, 10, $20,000 in water damage to a consumer’s bathroom, you were covered. The lawyer was provided to you by the insurance company, and the insurance company paid the settlement. So the importance of this story is you don’t necessarily need insurance for somebody getting hurt. You need insurance for all claims that might be asserted against you through your sales on Amazon.