Does liability insuracen requirement go away if under $10k sales for a period of time?
If you hit typically have $4-5k in monthly sales, but hit $10k in monthly sales for one month (then back down to $4-5k/month), does the requirement for liability insurance ever go away? Or are you stuck with it forever?
Does liability insuracen requirement go away if under $10k sales for a period of time?
If you hit typically have $4-5k in monthly sales, but hit $10k in monthly sales for one month (then back down to $4-5k/month), does the requirement for liability insurance ever go away? Or are you stuck with it forever?
1 reply
Seller_i6S8knzW6zU6Z
Hi @Seller_qWZZ3j6PzBvaF,
I understand you're hoping the insurance requirement might go away when sales drop back below $10k, but I'm afraid that's not the case.
The Amazon Services Business Solutions Agreement (see Section 9 here) states that once triggered, you must maintain insurance "throughout the remainder of the Term" of your selling agreement. There's no provision for this requirement to end when sales decrease.
The requirement kicks in "within 30 days after exceeding USD 10,000 in gross proceeds in sales in one month" and continues as long as you sell on Amazon.
If you're curious about what happens if you don't maintain the insurance, this help page explains that Amazon may need to:
- Seek reimbursement from you for any claim costs
- Restrict your selling in certain categories
- Temporarily suspend your account until insurance proof is provided
I know this might not be the answer you were hoping for, but I hope this helps clarify the policy!
