The new digital insurance network, Amazon Insurance Accelerator, will help small third-party sellers easily and affordably secure product liability insurance.
To give small business sellers on Amazon access to affordable product liability coverage, brokerage giant Marsh has partnered with the world's most valuable online retailer on its new digital insurance network, Amazon Insurance Accelerator.
A new mandate from Amazon requires third-party sellers to secure product liability coverage after reaching $10,000 in sales in one month on their platform, a change from the previous three-month requirement.
Amazon Insurance Accelerator will help small third-party sellers more easily and affordably secure product liability insurance to meet both their business needs and Amazon's new requirement, according to Marsh. For this, Marsh has curated a panel of insurers—Chubb, Harborway Insurance, Hiscox, Liberty Mutual Insurance, Markel and Travelers—and through digital insurance distribution providers Bold Penguin and Simply Business Inc., U.S.-based sellers on Amazon can now obtain quotes and purchase a policy through the network.
“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," said Anita Sathe, U.S. affinity leader at Marsh. “However, finding the right insurance policy at the right price—especially for new business start-ups—can be a daunting task."
“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," Sathe continued.
Sellers are not required to purchase coverage through Amazon Insurance Accelerator, according to Amazon's announcement of the partnership, and can continue to obtain insurance from any qualified insurance provider of their choice.
"We've seen rapid growth in the e-commerce industry over the last several years, and we're looking forward to extending our digital proposition to Amazon's third-party sellers," said David Summers, Group CEO of Simply Business. "We work with a growing number of nationally recognized insurance providers and are committed to providing business owners with choice, and a fast and simple insurance-buying experience."
The partnership may just be the beginning of insurance brokerages' opportunities to collaborate with online retailers.
“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," said Ilya Bodner, founder and CEO of Bold Penguin. “Each of these digital marketplaces are open to distribute insurance online to supplies, just like we have done with Amazon and Marsh."
NEXT Insurance also announced its participation in Amazon Insurance Accelerator, although it remains separate from Marsh's curated network and is participating based on its prior relationship with Amazon. NEXT began selling insurance to Amazon sellers and buyers earlier in 2021 as part of Amazon Business Prime.
AnneMarie McPherson is IA news editor.