Amazon Rejecting Sellers’ Insurance Policies Without an Employee Identification Number (EIN)
Hi, everyone. My name is David Miller. I’m the managing attorney of our business law for sellers department. Today, I’m discussing a topic that I’ve talked about in the past. It’s EINs and insurance on Amazon.
It’s common knowledge that you need insurance to sell on amazon.com. Foreign entities are running into problems, because they’re having a difficult time getting insurance unless they have a US entity. For those who don’t know, a foreign entity needs an E.I.N. and a US mailing address to obtain insurance to sell on Amazon. That’s not to say that you can get a call from an insurance company if you don’t have an E.I.N., but I advise against it for two main reasons…
The first reason is if you’re a foreign entity and you don’t have an E.I.N., Amazon is very likely to reject the proof of insurance that you provide to them.
Secondly, a lot of insurance companies are not going to accept claims without an E.I.N. I know two common ones: indemnification and product liability are being rejected. So I know some of these insurance companies offer very cheap quotes, but it comes with a price. It comes with Amazon rejecting that documentation. When they ask for proof of insurance, it’s very likely that they won’t pay out claims.
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