Attention cross border sellers – Amazon’s insurance requirement might be a little intimidating. Foxquilt’s eCommerce insurance experts have the information you need.
Amazon Prime Day 2023 was a big success (6% more sales than in 2022). With success comes the growth of individual sellers, and that growth may lead to you meeting Amazon’s insurance requirement threshold.
If not now, the holidays are coming so there’s still lots of time!
Now, while this article will focus on the Amazon Seller Insurance, requirements and how to get insurance that satisfies them, we encourage you to remember that the right business insurance can and should be put in place early in your business lifecycle.
Your needs might change and that’s okay because your insurance can grow with you.
Finding a cross-border eCommerce insurance solution can be a bit challenging; how do you find Canadian-based insurance that will provide coverage for your sales outside of Canada?
Let’s break down some tips on getting insurance for Canadian-based Amazon sellers.
What are Amazon’s Insurance Requirements?
Amazon.com’s insurance requirement is that any seller who reaches a revenue threshold of $10,000 in one month must provide proof of liability insurance within 30 days. This is specifically for sellers on Amazon.com. Amazon.ca has yet to release an insurance requirement for sellers.
There are a few particular requirements inside of Amazon’s request for insurance.
It’s important that your insurance provider be familiar with them to reduce frustrations and inconvenience if Amazon rejects your Certificate of Insurance (aka, proof of insurance).
Check out the requirements in the summary chart below.
A Note for Cross Border Sellers
Canadian sellers, this is where things become a bit trickier for you because not all Canadian insurance companies are comfortable with US revenue exposure.
This could mean that you have trouble getting an insurance policy, or that you pay significantly higher premiums. We have a few suggestions (and a shameless plug):
- Work with an insurance provider who advertises their expertise in the Amazon insurance requirements – this will ensure that they have coverage options that fit your needs and they’re operationally equipped to provide your Certificate of Insurance (COI/ proof of insurance) in the way Amazon likes it
- Double check your Certificate of Insurance (COI) before uploading it to Amazon to reduce the chance of rejection
- Insurance premiums can vary a lot based on a number of things including revenue, products being sold, payroll and geographic region. There are some great options so if you aren’t satisfied with the first quote you receive, there’s no harm in validating it.
- Work with a company that will sell how you sell – online! Foxquilt (direct or through our broker partners) specializes in the coverage Amazon sellers need and let you quote and buy entirely online. Get insurance handled on your own time!
Some Insurance Jargon (lame, but necessary)
Certificate of Insurance – A Certificate of Insurance is an official one-page document that proves you carry an active insurance policy.
Liability Insurance – Commercial General Liability is the base of your business insurance. Entirely simplified, it protects your business from claims if your product or service injures someone or something.
Product Liability – This is a sub-limit of your General Liability Insurance.
Whether you’re making every part of your product by hand, simply assembling materials that you’ve purchased separately and selling them as a complete unit, or reselling complete units you never touch, your Product Liability comes into play.
Umbrella Liability – Umbrella Liability is essentially an extra layer of liability you can purchase separately from your base Commercial General Liability.
It protects your existing liability coverage limits and acts as an additional layer if a claim goes beyond your existing limits.
Limit – A limit is the highest amount your insurer will pay for a claim that your insurance policy covers.
Additional Insured – An additional insured refers to anyone other than the policyholder who is covered by an insurance policy.
How Do You Prove Your Insurance to Amazon?
What Amazon is looking for in terms of proof of insurance is a certificate of insurance, also known as a COI. This is what you’ll be uploading for Amazon to review.
Once you have purchased the commercial insurance your business needs and that meets Amazon’s requirements, your insurance provider will need to give you a COI with the details mentioned in the summary above. You will then upload it into your Seller Central account. We’ve got more details on this process for you here.
To get your Amazon seller insurance through an eCommerce liability expert.
To Summarize
Canadian Amazon sellers can meet their insurance requirements with only a few steps. If you receive your notice from Amazon and you already have business insurance, simply make sure it’s compliant, upload your COI and you’re good to go. If you don’t have your insurance yet, don’t fret, there are great digital insurance partners ready to get you covered!
Blair Forrest is the Founder of AMZ Prep, one of North America’s fastest-growing third-party logistics and fulfillment networks, built entirely without outside capital since 2016. Under his leadership, AMZ Prep has scaled to 50+ fulfillment centers across 6 countries, processing over 8 million units monthly and powering $2 billion+ in annual GMV for more than 5,000 brands worldwide including 437, Silverts, Saltyface, Unilever, Duracell, and JBL. A recognized authority in eCommerce logistics, Amazon FBA strategy, and supply chain optimization, Blair has helped thousands of sellers and brands master their fulfillment operations from first shipment to enterprise scale. He regularly consults on FBA prep, multi-channel fulfillment, last mile delivery, international expansion, and cost reduction strategies that save brands 20–40% compared to traditional 3PL providers. Blair’s insights on Amazon logistics, 3PL operations, and eCommerce growth are widely cited across the industry. Through AMZ Prep’s content, guides, and resources, he continues to share battle-tested strategies drawn from managing one of the largest independently owned fulfillment networks in North America.
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