Marsh Brokers New Amazon Insurance Network Offering Coverage to Online Sellers

Insurance broker Marsh said it has collaborated with Amazon to build a new digital insurance network, Amazon Insurance Accelerator, where small businesses selling on Amazon can purchase product liability coverage.

Amazon now requires third-party sellers to obtain product liability coverage after reaching $10,000 in sales in one month rather than three months on Amazon. To help sellers secure this insurance, Marsh said it curated a panel of insurers of small commercial business and secured digital insurance distribution providers to help create Amazon Insurance Accelerator.

U.S.-based sellers on Amazon now can obtain quotes and purchase a policy that meets their needs and Amazon’s requirements from one of the current participating insurers: Chubb, Harborway Insurance underwritten by Spinnaker Insurance Co., Hiscox, Liberty Mutual Insurance, Markel and Travelers.

The policies are made available digitally by Bold Penguin and Simply Business, Inc., the announcement 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,” said Anita Sathe, U.S. Affinity Leader, Marsh. “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.”

Separately, small business insurer NEXT Insurance announced it is also participating in the new Amazon Insurance Accelerator. NEXT handles its own digital distribution, including sending certificates of insurance information automatically.

NEXT actually began selling insurance to Amazon sellers and buyers earlier this year as part of Amazon Business Prime. Business Prime members can obtain NEXT quotes and then purchase general liability, professional liability, workers’ compensation, commercial auto and tools and equipment coverages.

NEXT said it is offering a 10% discount on general liability insurance for Amazon third-party sellers through the new Accelerator. For Amazon Business Prime customers, it offers a 10% discount on general liability and professional liability policies.

Amazon announced it is creating the insurance network along with implementing a new policy of paying shoppers’ injury and damage claims up to $1,000.

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.

Ilya Bodner, Bold Penguin’s CEO and founder, told Carrier Management he thinks there is room for more programs like the Amazon one.

“There are countless digital marketplaces that cover a variety of products, from sporting goods, to cosmetics, to trash bags and everything else that we buy online,” Bodner said. “Each of these digital marketplaces are open to distribute insurance online to supplies, just like we have done with Amazon and Marsh.

An Amazon representative told Insurance Journal that it is likely other insurance carriers will be able to get involved in the future in the network. She suggested they contact Marsh to find out more.