Partner – Amazon Insurance Program
Zensurance Amazon Partnership

Amazon Insurance Program

Zensurance is the official business insurance partner for Amazon sellers in Canada

Product liability insurance is critical for Amazon sellers to protect their finances from the risks and costs associated with third-party claims or lawsuits. As the official insurance provider for Amazon Canada sellers, Zensurance provides exclusive, low-cost pricing for the protection you need.

Zensurance - Amazon Seller
Zensurance - Amazon Seller
Zensurance Amazon Partnership

Amazon Insurance Program

Zensurance is the official business insurance partner for Amazon sellers in Canada

Product liability insurance is critical for Amazon sellers to protect their finances from the risks and costs associated with third-party claims or lawsuits. As the official insurance provider for Amazon Canada sellers, Zensurance provides exclusive, low-cost pricing for the protection you need.

Partnerships with over 50 leading Canadian insurance providers

Amazon Retailer

Product liability insurance for Amazon sellers

Whether you use Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM) to deliver your products to customers, Amazon Canada requires all sellers to carry insurance. 

Product liability insurance is designed for any business that sells, manufactures, or distributes a product to consumers. It is essential coverage for online retailers, e-commerce businesses, and brick-and-mortar stores using the Amazon Canada Marketplace because it protects against claims alleging third-party property damage and third-party bodily injury for any product you sell, manufacture, or distribute to consumers.

Yes. As of September 1, 2021, Amazon requires all sellers to carry liability insurance if they earn $10,000 in monthly sales. Amazon seller insurance from Zensurance helps Canadian retailers meet Amazon’s insurance requirements with:

  • A policy with a limit of at least $1 million per occurrence and in aggregate, and cover liabilities caused by or occurring in conjunction with your business operations, including products, and property damage and bodily injury.
  • The insurance policy type can be either commercial general liability, umbrella, or excess liability and be occurrence based.

A comprehensive Amazon sellers insurance policy from Zensurance will typically include the following coverages:

  • Commercial General Liability (CGL) Insurance: As an Amazon seller, you conduct your business online. CGL insurance, or general liability insurance, protects you against the day-to-day risks that can happen when interacting with third parties, such as claims of bodily injury or property damage.
  •  Product Liability Insurance: Product liability coverage is a must-have for Amazon sellers. It is typically included in a CGL policy, and it protects against claims alleging third-party property damage or third-party bodily injury caused by a product you manufacture, distribute, or sell to a consumer.

Damages covered by product liability are usually the result of a defect in the design, manufacturing, or marketing, such as an incorrect label or a lack of safety warnings. Also, if you import or export products outside of North America, check with your broker to ensure that the products meet industry standards.

  • Cyber Liability Insurance: For any online business or Amazon seller, cyber liability insurance is one of the most critical coverages to have for selling products online, especially if you’re storing your customers’ data. Cyber liability insurance covers costs associated with electronic incidents, such as cyber-attacks and data breaches.
  • Commercial Property Insurance: If you store your product inventory in a location like a warehouse, have a brick-and-mortar shop, or operate your business from home, you need commercial property insurance.

Commercial property insurance protects your physical location, as well as its contents (including your inventory) from insured risks that occur beyond your control, like a fire, theft, or flood. It’s a common misconception that home-based businesses are covered through a personal homeowner insurance policy. Most home insurance policies exclude business-related claims.

Carrying commercial property insurance gives you the option of getting business interruption coverage, which reimburses the net income lost following an insured event. It may also cover overhead costs, employee wages, and other costs associated with temporarily closing your business.

Amazon sellers can expect to pay anywhere from $400 to $3,000 per year for a commercial general liability insurance policy with a $2 million limit, but the precise amount you pay is based on several factors, including:

  • Your business’s location
  • The products you sell and where they are sourced from
  • Your annual and projected revenue
  • Your years of experience
  • How many employees you have (if applicable)
  • Any previous insurance claims you may have made

As the official business insurance provider for Amazon Canada sellers, Zensurance provides sellers with customized insurance at exclusive prices to protect them from risks posed by selling merchandise on the Amazon Marketplace.

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Common claims scenarios

Amazon product box

Problem: You ship a product to a customer as per their order. Whether it malfunctions or is used improperly, the customer sues you claiming bodily injury.

Outcome: Product liability coverage may cover any third-party bodily injury claims, including medical expenses, as well as any legal fees you face to defend yourself.

Business Flood Prevention Tips

Problem: A flood significantly damages your home-based business, including your inventory, technology systems, and the property rendering it uninhabitable.

Outcome: Commercial property coverage may cover the costs to repair your workspace and replace its contents, and your business interruption coverage can reimburse the income your business lost when closed while repairs were underway.

Ecommerce Cyber Attack

Problem: Your company’s servers that store your customers’ information are hacked, and your customers’ financial data is stolen.

Outcome: Cyber liability coverage may cover the cost to repair your technology systems and any legal expenses arising from the data breach.

Frequently asked questions

Does product liability insurance cover me if I also sell on other third-party marketplaces?

Yes. Whether your business is a private label seller, wholesaler, or retail shop that uses Amazon or any online marketplace including eBay, Etsy, and Wayfair, a customized product liability insurance policy is designed to cover you for third-party bodily injury and third-party property damage claims caused to a customer by a product you sold to them.

Will Amazon sellers insurance cover me for all the products I sell on the Amazon Marketplace?

Yes. A customized Amazon sellers insurance package from Zensurance is designed to cover the products you sell, design, manufacture, or distribute to consumers, whether a private label seller or a professional seller. Amazon sellers insurance protects you and your business from unforeseen circumstances, including legal fees and settlements and third-party property damage and third-party bodily injury claims.

How much insurance coverage do I need to sell products on Amazon?

Amazon requires all sellers to carry liability insurance if they earn $10,000 in monthly sales with a policy that has at least $1 million of coverage per occurrence and in aggregate. Speak to one of our knowledgeable brokers if you have any questions.

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Customized, low-cost business insurance that protects your finances and enhances financial wellness by helping you recover quickly after suffering insurable damage or loss.

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Get a free quote and buy a policy online whenever convenient for you. Just tell us what you do, choose your coverages, buy online and get a certificate of insurance instantly.

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Dedicated Claims Service

Our dedicated claims team is available 24/7 to help you file a claim, provide guidance, and ensure your claim is addressed by your insurer quickly.

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Experienced Brokers

Our licensed brokers are risk management experts who can answer your questions, tell you what you need, and explain what you’re covered for in plain language.

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World-Class Customer Service

We strive to deliver the top-notch customer service you deserve at every turn. Whether changing or renewing a policy or answering your questions, we put your concerns first.

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Membership Benefits

We don’t just sell business insurance; we also support our clients through the Zensurance Perks program – get discounts on our partners’ products and services to help your business grow.

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Unexpected events and mistakes can happen to anyone at any time. Protect your assets and reputation and fulfill Amazon Canada’s liability insurance requirements through Zensurance.  

As the official provider of Amazon sellers business insurance in Canada, we can get the low-cost, customizable protection you need quickly.

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