EP 12: Liability Insurance and Selling on Amazon With Ron Pitcher

What kind of insurance do you need to sell on Amazon?

Amazon requires $1,000,000 in Commercial General Liability insurance for all Pro-Merchants on the platform.  However, in order to be protected from theft, fire, and even many accidents you will also need to make sure that you have the right type of insurance riders on your policy as well.

If you’re selling products online or in brick and mortar, it’s important that you have insurance, not only to protect your own assets and the health of your business but most importantly to protect your clients. In this episode, Ron Pitcher from Pitcher Insurance joins us and shares his insight from over 35 years of experience with liability and business insurance.

You Need Liability Insurance

In the episode, Ron shares the amount and type of insurance you have will vary depending on your product, how it is sourced, and the operations of your business. He breaks down different policies and coverages and goes over what questions you should be asking as you are looking for insurance.

Ron goes on to explain how to approach insurance companies if your working from home, if you have employees or if your products can be hazardous. He also suggests considering the excess and surplus market or ENS market, where the premiums might be a bit higher but there’s a broader amount of coverage available and you can design the policy based on your specific situation. So, it’s not impossible to find coverage for whatever you’re doing. 

“You will find coverage, you just have to do the research, find an independent agent, find a direct writer, find somebody that wants to work with you and most important that you trust and feel comfortable with.”

You Need More Than Just A Policy

As a company grows, it will start shifting, new threats will arise and it will morph to a point where you no longer need an insurance agent but rather a risk manager who will analyze and determine the coverages you need. Ron explains that he is going to tell you what should be keeping you up at night, how to plan for the future and how to cover your basis. 

In the second part of the interview, we go over how to choose the right policy and what percentage of your revenue should your insurance representative.  We go on to talk about how often you should restructure your policy or look for new quotes. And finally, Ron addresses what to avoid when structuring your policy and what pitfalls are most common when choosing your policy and calculating coverage. 

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