According to Amazon Canada, more than 80,000 Canadian Amazon sellers were using its third-party marketplace to sell goods as of 2021. Most of these third-party sellers are small businesses but tens of thousands are individual sellers who use the platform either as a lucrative side hustle or an integral part of their usual business operations.
Whether you’re an independent Amazon seller or a small business owner that utilizes the site as part of your company’s overall e-commerce strategy, or if you’re on the cusp of launching an Amazon business for the first time, it’s vital to have Amazon sellers insurance to protect your finances and cover your liability risks.
For some sellers, it’s a requirement. Since 2021, Amazon Canada requires all Amazon sellers with Pro Merchant accounts earning $10,000 per month in sales to carry liability insurance with a minimum coverage limit of $1 million per occurrence and in aggregate. Amazon Canada requires its sellers with gross sales of $10,000 per month to carry insurance to limit the financial risks associated with selling goods on their platform that cause third-party bodily injuries or third-party property damages to your customers caused by the items you sell.
