Bundled Insurance for Amazon Sellers
General liability, product liability and your inventory on one policy, with one renewal date and one certificate. Here is what a package does well, where it stops and how to weigh it against separate policies.
What a seller package puts together
A bundled package for an Amazon seller pulls three protections onto one policy. General liability answers claims that your business hurt someone or damaged their property, along with advertising injury, such as a claim that your listing used a competitor’s slogan. Product liability, written into the same policy as products-completed operations, answers injury and damage caused by the goods you sell, and it is the part Amazon checks on your certificate. Inventory cover protects your stock against fire, theft, water damage and similar losses while it sits in your garage, a storage unit or a third-party warehouse.
Mithril1 can place a bundled package for Amazon sellers. We request it from insurers that write online retail, and the insurer decides after reviewing what you sell, your sales and where your stock is kept. Many sellers know the structure as a business owner’s policy; others see it written as a package policy, with liability and property parts under one declarations page. Our BOP vs. general liability guide explains the general version, and this page covers how it fits a store on Amazon.
What one package simplifies
One application covers all three. The underwriter reviews your catalog once, which means one product list, one sales history and one set of test reports instead of three files sent to three insurers.
One renewal date replaces several. Separate policies bought months apart renew on different dates, and a lapse on the liability side is the one Amazon notices, because the certificate on file in Seller Central expires with it. A package renews in a single review.
One certificate carries the proof. It shows the liability limits and the additional insured endorsement for Amazon, and with the property part on the same policy, a 3PL or landlord asking for evidence of cover gets it from the same document set. Our Amazon certificate of insurance guide shows what Amazon reads on it.
One payment schedule pays for it all. Mithril1 can offer monthly payment options, so a seller can spread liability and inventory together instead of juggling separate bills and due dates.
One insurer answers a mixed loss. When the same insurer writes both parts, an event like a warehouse fire that destroys your stock and damages a neighboring tenant’s goods goes to one claims team, not two insurers working out which policy answers which part.
What a package does not replace
A bundle covers your products, your liability to the public and your stock. Several other risks a seller faces sit on their own policies. Workers’ compensation is required in California once you have employees and is always written separately; see workers’ compensation. Vehicles your business owns belong on commercial auto.
Goods on the water need cargo cover. The property part of a package often carries only a small amount for stock in transit, well below the value of a container, so ocean and air shipments from a supplier belong on cargo insurance for Amazon sellers. A hijacked Seller Central login or a data breach goes to cyber insurance for online sellers, and the cost of pulling a product off the market goes to product recall insurance, which product liability leaves out.
Higher limits sit above it. When a retailer, distributor or wholesale account wants $2 million or $5 million, a commercial umbrella goes over the package’s liability part rather than replacing it.
Limits and deductibles inside a package
Each part of a package has its own limits, and they work differently. On the liability side, look for the per-occurrence limit and how the aggregate is written: some forms carry one general aggregate and a separate aggregate for products-completed operations. The certificate should show figures that meet Amazon’s $1 million per occurrence and $1 million aggregate. On the property side, check the limit for stock at each address and whether stock is valued at what you paid for it or at what it sells for.
Deductibles are separate too. Trade press reports that Amazon caps the liability deductible at $10,000, so confirm the liability deductible against the current rule in Seller Central. The property deductible comes out of your cash on every inventory claim, so set it at a figure a slow month can absorb. Seasonal stock needs a plan as well: a limit set in March leaves a November peak short, and our e-commerce inventory insurance guide explains reporting forms and peak-season limits.
Stock inside Amazon’s fulfillment centers is its own question. Amazon reimburses lost and damaged FBA units under its own policy, and a property part covers stock at other companies’ locations only when the policy names that cover. Lost and damaged FBA inventory walks through where each one applies.
Comparing a bundle with separate policies
Line up the same coverage before you compare prices. Ask for the package and the separate policies at the same liability limits, the same property limit for each address, the same deductibles and the same occurrence form. Then set the twelve-month totals side by side, including policy fees, surplus lines taxes and any installment charges.
Then read past the price. Check that the package names each place your stock sits, whether it excludes any product class you sell, such as lithium battery goods, and whether the liability part lists Amazon as additional insured by endorsement. A lower total that leaves out your riskiest SKU or your 3PL is not the same cover.
For a reference point, one small-business marketplace publishes an average of $1,136 a year for an e-commerce business owner’s policy at $1 million/$2 million limits with a $500 deductible. Our Amazon seller insurance cost estimator gives a liability range for your sales and category, and how much insurance for Amazon sellers costs adds up the other lines.
When separate policies fit better
A package works best when your products and your stock both fit one insurer’s appetite. Separate policies suit a brand in a higher-risk category, where a specialist product liability insurer prices the goods and another insurer writes the property. They also suit a seller with inventory spread across many warehouses, or high-value stock that needs a limit of its own. A growing brand often keeps a package for the core and adds standalone policies around it as the business spreads out.
Requesting a bundled quote
Send us your product list by category, twelve months of sales by channel, where each product is made, every address where stock sits with its average and peak value, and any claims so far. We work with hundreds of Amazon sellers. We request a package from insurers that write online retail, and when separate policies make the comparison clearer, we quote those alongside it on the same terms. The insurer decides on the package after reviewing your file.
A few useful answers
Common questions
Can I get general liability, product liability and inventory on one policy through Mithril1?
You can, when an insurer accepts the file. We request a package from insurers that write online retail, and the insurer decides after reviewing your products, sales and the addresses where stock sits.
Does a bundled policy meet Amazon’s insurance requirement?
It does when the liability part shows $1 million per occurrence and $1 million in the aggregate, names Amazon as additional insured by endorsement and keeps the deductible within Amazon’s cap. The certificate is what Amazon checks.
Will a bundle cost less than separate policies?
Quotes on the same limits and deductibles answer that for your store. Compare the twelve-month totals, including fees and taxes, and check that both options cover the same products and addresses.
Does a package cover stock at an FBA warehouse?
Only if the policy names cover for stock held at other companies’ locations. Give the insurer every address where your goods sit, FBA centers included, and check each one on the quote.
Does the package cover my employees or my imports at sea?
No. Workers’ compensation is its own policy once you have employees in California, and ocean or air shipments need cargo insurance. Both can be quoted alongside the package.