E- commerce giant Amazon has partnered with Insurance broker Marsh to offer product liability coverage to small businesses.
Amazon announced it is creating the insurance network-Amazon Insurance Accelerator- along with implementing a new policy of paying shoppers’ injury and damage claims up to $1,000.
Marsh said it worked with a panel of insurers of small commercial businesses and digital insurance distribution providers to create Amazon Insurance Accelerator, which would help sellers more easily buy product liability insurance.
The online marketplace now requires third-party sellers to obtain product liability coverage after reaching $10,000 in sales within one month on Amazon.
Through the platform, the US-based sellers can obtain quotes and purchase a policy from insurers such as Chubb, Harborway Insurance underwritten by Spinnaker Insurance Company, Hiscox, Liberty Mutual Insurance, Markel, and Travelers.
In its blog, Amazon calls the Accelerator a “network of vetted insurance providers who will evaluate and, if appropriate, offer liability insurance at competitive rates to qualifying sellers.”
According to the announcement, sellers are not required to use a provider within Amazon Insurance Accelerator; they can continue to obtain insurance from any qualified insurance provider of their choice.
The policies are made available digitally by Bold Penguin and Simply Business.
Marsh US affinity leader Anita Sathe said: “Product liability insurance allows Amazon sellers to focus on scaling their businesses, knowing they are protected should one of their products accidentally cause bodily harm or property damage.
“However, finding the right insurance policy at the right price — especially for new business start-ups — can be a daunting task. Amazon Insurance Accelerator makes it easy for sellers to obtain competitive quotes from reputable insurers that will stand behind their business and give them peace of mind.”