FBA Seller Insurance

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Specialized insurance for Fulfillment by Amazon sellers. Protect your FBA business from warehouse risks and liability claims

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FBA SELLER INSURANCE THAT PROTECTS YOUR BUSINESS

Why FBA Seller Insurance Matters

Fulfillment by Amazon sellers face unique risks including inventory damage at Amazon warehouses, fulfillment errors, product liability claims, and account suspension for non-compliance. While Amazon provides limited reimbursement for lost or damaged inventory, it doesn't cover product liability claims or protect against account suspension. Insure24's FBA seller insurance provides comprehensive protection for your inventory, liability exposure, and business continuity, ensuring you can operate with confidence.

Comprehensive FBA Seller Coverage

Protect your FBA business with specialized insurance covering warehouse risks, inventory, and fulfillment liability.

  • FBA Inventory Protection - Coverage for inventory stored at Amazon fulfillment centers against damage, loss, theft, and warehouse incidents beyond Amazon's reimbursement.
  • Product Liability Coverage - Protection against claims from customers for product defects, injuries, or property damage from products fulfilled by Amazon.
  • Fulfillment Error Protection - Coverage for losses arising from Amazon fulfillment mistakes, shipping errors, and incorrect product delivery.
  • Transit Coverage - Protection for inventory during shipment to Amazon warehouses, including inbound freight damage and loss.
  • Amazon Compliance - Insurance certificates meeting Amazon's requirements with Amazon named as additional insured to prevent account suspension.
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Common FBA Seller Risks

  • Inventory damage at Amazon warehouses
  • Lost or missing inventory in FBA system
  • Product liability claims from customers
  • Fulfillment errors and shipping mistakes
  • Warehouse fire or flood damage
  • Inventory damage during inbound shipment
  • Account suspension for insurance non-compliance
  • Amazon reimbursement claim denials
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Why Choose Insure24

  • FBA Expertise - Our specialists understand FBA-specific risks and Amazon's insurance requirements for fulfillment sellers.
  • Comprehensive Coverage - Protection beyond Amazon's limited reimbursement, covering gaps in Amazon's seller protection.
  • Fast Certificates - Amazon-compliant insurance certificates delivered within 24-48 hours to prevent account suspension.
  • Claims Support - Expert guidance on both insurance claims and Amazon reimbursement claims to maximize recovery.
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How to Get FBA Seller Insurance

  • 1. Get a Quote - Provide details about your FBA inventory value, product categories, annual sales, and fulfillment centers used.
  • 2. Review Coverage - Our team explains FBA-specific coverage options and recommends appropriate limits for your inventory and liability exposure.
  • 3. Customise Your Policy - Adjust coverage limits for inventory, liability, and transit protection based on your FBA business needs.
  • 4. Receive Certificate - Get your Amazon-compliant insurance certificate and upload to Seller Central to maintain account compliance.
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When a fire at an Amazon warehouse damaged my inventory, Insure24's FBA insurance covered the full value. Amazon's reimbursement was limited, but my insurance filled the gap completely

David M., FBA Private Label Seller

FBA SELLER INSURANCE
TAILORED FOR YOU 

PROTECT YOUR FBA BUSINESS

  • Full inventory value protection at FBA warehouses
  • Product liability claims from FBA customers
  • Fulfillment error and shipping mistake coverage
  • Inbound shipment transit protection
  • Amazon compliance certificate delivery
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FBA-Specific Coverage & Protection

Our FBA seller insurance addresses the unique risks of Fulfillment by Amazon operations:

  • Coverage for inventory stored at multiple Amazon fulfillment centers
  • Protection during Amazon warehouse transfers and relocations
  • Coverage for Amazon reimbursement claim gaps and denials
  • Protection for commingled inventory in Amazon's system
  • Coverage for products damaged during Amazon fulfillment operations
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FREQUENTLY ASKED QUESTIONS

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What is FBA seller insurance?

FBA seller insurance is specialized coverage for Amazon sellers using Fulfillment by Amazon. It protects your inventory stored at Amazon warehouses, covers product liability claims, and provides protection beyond Amazon's limited reimbursement for lost or damaged inventory.

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Why do FBA sellers need insurance?

FBA sellers need insurance because Amazon's reimbursement is limited and doesn't cover all losses. Insurance protects against warehouse fires, floods, inventory damage, product liability claims, fulfillment errors, and gaps in Amazon's seller protection. It also meets Amazon's insurance requirements to prevent account suspension.

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Does Amazon's FBA reimbursement replace insurance?

No, Amazon's FBA reimbursement is limited and doesn't cover all scenarios. Amazon reimburses at their valuation (often lower than actual value), has strict claim deadlines, and doesn't cover product liability, warehouse catastrophes, or many fulfillment errors. Insurance fills these critical gaps.

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What FBA-specific risks does insurance cover?

FBA insurance covers inventory damage at Amazon warehouses, warehouse fires and floods, lost inventory in FBA system, damage during warehouse transfers, fulfillment errors, inbound shipment damage, commingled inventory issues, and Amazon reimbursement claim denials or gaps.

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How much does FBA seller insurance cost?

Premiums vary based on inventory value, product categories, storage locations, claims history, and coverage limits. Basic FBA coverage typically starts from £400-£600 annually. High-value inventory or high-risk products cost more. Contact us for a personalized quote based on your FBA inventory.

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Does FBA insurance cover inventory at all Amazon warehouses?

Yes, FBA insurance covers your inventory at all Amazon fulfillment centers where your products are stored, including coverage during transfers between warehouses. Coverage extends to all UK and international Amazon fulfillment centers where you store inventory.

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What happens if there's a fire at an Amazon warehouse?

If fire damages an Amazon warehouse, your FBA insurance covers the full replacement value of your inventory. Amazon's reimbursement may be limited or delayed. Insurance ensures you can quickly replace inventory and continue selling without significant business interruption.

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Does FBA insurance cover commingled inventory?

Yes, FBA insurance covers commingled inventory (where Amazon mixes your products with identical products from other sellers). This protects you if Amazon fulfills your order with another seller's defective product or if commingled inventory is lost or damaged.

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Does insurance cover inbound shipments to Amazon?

Yes, FBA insurance includes transit coverage for inventory shipped to Amazon fulfillment centers. This protects against damage, loss, or theft during inbound freight from your supplier or warehouse to Amazon's receiving docks.

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What if Amazon denies my reimbursement claim?

If Amazon denies your reimbursement claim or provides insufficient reimbursement, your FBA insurance can cover the gap. Insurance provides protection when Amazon's reimbursement process fails or when losses fall outside Amazon's reimbursement policy.

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Does FBA insurance cover product liability claims?

Yes, FBA insurance includes product liability coverage for claims arising from products fulfilled by Amazon. This covers customer injuries, property damage, and product defects, protecting you from costly lawsuits and meeting Amazon's insurance requirements.

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What if Amazon fulfills the wrong product to my customer?

FBA insurance can cover losses arising from Amazon fulfillment errors including wrong product shipments, incorrect quantities, or mislabeled items. This protects your business when Amazon's fulfillment mistakes result in customer complaints, returns, or lost sales.

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How do I value my FBA inventory for insurance?

Value your FBA inventory at replacement cost (what it costs to replace inventory including product cost, shipping, and import duties). Use your Amazon inventory reports to calculate total value across all fulfillment centers. Update your coverage limits as inventory levels change seasonally.

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Does FBA insurance cover seasonal inventory spikes?

Yes, FBA insurance can be adjusted to cover seasonal inventory increases during peak selling periods like Q4 holidays. Notify your insurer of significant inventory increases to ensure adequate coverage during high-value inventory periods.

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What documentation do I need for FBA insurance claims?

For FBA insurance claims, provide Amazon inventory reports, reimbursement claim documentation, proof of inventory value (invoices, purchase orders), photos of damage if available, and correspondence with Amazon. Keep detailed records of all FBA inventory and transactions.

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Does insurance cover Amazon warehouse transfers?

Yes, FBA insurance covers inventory during Amazon-initiated warehouse transfers and relocations between fulfillment centers. This protects against damage or loss when Amazon moves your inventory to optimize their fulfillment network.

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Can I get FBA insurance for international fulfillment centers?

Yes, FBA insurance provides worldwide coverage for inventory stored at international Amazon fulfillment centers including EU, US, Canada, Japan, and other Amazon marketplaces. This ensures comprehensive protection across your global FBA operations.

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What if my FBA inventory is damaged during receiving?

FBA insurance covers inventory damaged during Amazon's receiving process at fulfillment centers. This includes damage from improper handling, forklift accidents, or warehouse operations during check-in and storage placement.

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Does FBA insurance cover private label products?

Yes, FBA insurance covers private label products stored at Amazon warehouses. Private label sellers often have higher inventory values and greater liability exposure, making comprehensive FBA insurance especially important for protecting your brand investment.

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What exclusions apply to FBA seller insurance?

Common exclusions include intentional acts, known defects, counterfeit products, inventory already covered by Amazon reimbursement, poor packaging leading to damage, and losses from policy violations. Policies also exclude inventory not properly documented in Amazon's system. Review your policy for specific exclusions.

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How quickly can I get FBA insurance coverage?

We provide FBA insurance coverage and Amazon-compliant certificates within 24-48 hours of policy purchase. If you need urgent coverage due to Amazon's insurance request or high-value inventory shipment, contact us for expedited processing.

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Can I reduce my FBA insurance premium?

Implementing quality control, using proper packaging, maintaining accurate inventory records, avoiding high-risk product categories, and using Amazon's inventory management tools reduces premiums. Higher deductibles also lower costs, though this increases your out-of-pocket expense for claims.

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Does FBA insurance cover stranded inventory?

FBA insurance covers physical damage or loss to stranded inventory (inventory that cannot be sold due to listing issues). However, it typically doesn't cover business losses from being unable to sell. Resolve stranded inventory issues quickly to minimize exposure.

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What if Amazon loses my inventory during a warehouse closure?

FBA insurance covers inventory lost during Amazon warehouse closures, relocations, or system errors. If Amazon's reimbursement is insufficient or denied, your insurance provides full replacement value coverage for lost inventory.

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How often should I review my FBA insurance coverage?

Review your FBA insurance quarterly or whenever inventory levels change significantly (seasonal increases, new product launches, expanded marketplaces). Regular reviews ensure your coverage limits match your actual inventory value at Amazon fulfillment centers.

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