General Liability Insurance is a must-have for selling on Amazon, Walmart, and other major platforms
Selling on major eCommerce platforms like Amazon and Walmart comes with a set of requirements to ensure business integrity and consumer protection. One of these requirements is General Liability Insurance, a safeguard that protects sellers and their businesses against potential risks and liabilities.
This article explains why General Liability Insurance is essential, the risks it covers, and how to ensure compliance with platform requirements.
Why Do You Need General Liability Insurance?
Platforms like Amazon and Walmart mandate General Liability Insurance to:
- Mitigate Risks: As a seller, your business may face lawsuits or claims related to your products, services, or operations.
- Comply with Platform Policies: Both Amazon and Walmart require proof of insurance once your gross monthly sales exceed a specified threshold (e.g., $10,000 on Amazon).
- Protect Your Business: Insurance safeguards you financially from unexpected incidents that could otherwise cause significant losses.
What Does General Liability Insurance Cover?
General Liability Insurance typically includes protection against:
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Product Liability:
- Claims arising from defective or unsafe products sold through your store.
- Examples: A product that causes injury to a customer or damage to their property.
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Property Damage:
- Damage caused by your products to someone else’s property.
- Examples: A product leaks or malfunctions, damaging a customer's home.
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Bodily Injury:
- Injuries caused by your products or activities.
- Examples: A customer gets hurt using your product due to a design flaw.
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Legal Fees and Settlements:
- Covers the cost of defending your business against lawsuits or paying settlements.
Insurance Requirements by Platform
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Amazon:
- Coverage must be at least $1 million per occurrence and in aggregate.
- The policy must name "Amazon and its affiliates" as an additional insured party.
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Walmart:
- Requires coverage of at least $1 million.
- The policy should name "Walmart" as an additional insured entity.
Check specific seller guidelines for updates on insurance requirements.
How to Obtain General Liability Insurance
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Access Embedded Insurance via Viably
Viably has partnered with Coverdash to offer eCommerce sellers an embedded insurance solution directly within the Viably platform. This integration simplifies the process of obtaining General Liability Insurance by providing instant access to tailored policies. Sellers can now:- Get comprehensive business insurance coverage specifically designed for eCommerce needs.
- Receive instant offers from over 30 top carriers, ensuring competitive rates and options.
- Purchase and manage policies seamlessly within their Viably Global Account.
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Key Benefits of Viably's Embedded Insurance Solution:
- Streamlined Experience: No need to search for external insurers—coverage is available directly in the Viably platform.
- Tailored Policies: Policies are customized for eCommerce businesses, addressing risks like product liability and platform compliance.
- Quick Access: Instant quotes and policy activation mean no delays in meeting platform requirements.
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Steps to Get Covered:
- Log in to your Viably account.
- Navigate to the Insurance section in your dashboard.
- Provide basic business details to receive customized policy options.
- Compare quotes from over 30 carriers and choose the best fit.
- Activate your policy and submit proof of insurance to your eCommerce platform, if required.
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Maintain Compliance:
- Regularly review your coverage within Viably to ensure it aligns with platform updates or changes to your business.
By leveraging Viably's embedded insurance solution powered by Coverdash, eCommerce sellers can easily obtain the coverage they need to comply with platform requirements and protect their businesses—all without leaving the Viably platform.