Amazon Seller Insurance with Peter Heibloem - a podcast by Michael Veazey

The first rule is to always have Amazon Seller Insurance. We will walk you through how it will works, how to get one and why you need it.



Peter Heibloem is the CEO of Online Sellers Insurance .

What if you’re just starting out? With say $1-2K worth of product?

A lot of people just do their initial test order and see if it will just work!



Once Peter was doing $5K a month, he realised the opportunity they were doing. 



And taking it seriously, that’s when they got the policy and got themselves covered. 



Also, his product was very simple and low risk - it wasn’t a pogo stick or a unicycle. 



There’s a big difference between a butter knife and a pocket knife. The latter could cost you about $10K USD for cover. 



* Look at the worst-case scenario - when you’re new and not established. 

* If your account gets shut down, you can afford to just lose it because you have less to lose. 

* When you have legal advice in the policy, you’re better off. 

* If ever you have a big business, protect it with Amazon seller insurance. 

* When you’re just starting, just start it. 

* If in doubt, jump online, fill out a PDF and figure out the cost per year for insurance. 

* Most of the time, 9/10 times, it is not a ridiculously high price. 



40 mins ca. “shit could go wrong” 

If you’re early on product research, there’s an Amazon Seller Insurance for you.

Is that country-specific?

In every Amazon marketplace - if you start on 4 marketplaces, theoretically a lot of sellers go to different places.

Cost of USA/LLC 

If you insure via an LLC and you get access to an American agent. It’s cheap but only covers them for the USA. 



If you are only selling in the USA, the insurers are familiar with Amazon. There is more competition between insurers in the USA. 



However, if you expand internationally, you’re better off with a worldwide cover. 

Worldwide brokers

Peter has links to insurers.

Suspension insurance coming up

Still investigating - because wouldn’t want to sell someone unless you’d buy it yourself. 



Still getting feedback from a broker in States, feedback from a lawyer. 



Using Amazon lawyers too on Online Sellers Insurance.



 

Amazon under pressure

In the EU, Amazon is being held accountable for the way they treat their sellers regarding suspensions. They are being placed under a lot of pressure on the EU to be fairer, work With the sellers and arbitration. 



If that goes through, that may affect other marketplaces. At that point, suspension insurance becomes more viable. 

How Insurance works for suspensions

If you’re getting $250K a month in sales and amazon suspends your account, you’d get 5 day excess. That gives insurance co’s change to work with Amazon.



Then they average out sales over a year - they insure for 80% of that. 



There are a few clauses in there where Peter is getting legal advice. 

Shipping and Cargo insurance 

Is this something you really need?



Most people take this out with their Freight Forwarder. If not, they can just do a quick search on the container ship that rolled over in Georgia. 



It went through a storm etc. - the whole ship rolled over - the loss was enormous. 



We all hear about damaged stock or containers going overboard. 



The first rule ALWAYS have insurance. 



Save with Annual cover

Further episodes of Amazing FBA Amazon and ECommerce Podcast, for Amazon Private Label Sellers, Shopify, Magento or Woocommerce business owners, and other e-commerce sellers and digital entrepreneurs.

Further podcasts by Michael Veazey

Website of Michael Veazey