Will Amazon Europe also need to purchase insurance in the future? Amazon Canada and Europe’s official latest insurance requirements policy (May 29, 2024)

I received a reminder from Amazon that will the European site also need to purchase insurance in the future?

According to the information in the email, I went to the "Amazon Services Europe Business Solutions" page to check. It can be said that it is quite complicated, and the insurance terms do not mention the specific sales threshold. Is there anyone who knows about this? It should be similar to the United States, with a monthly sales threshold of 10,000?

It is indeed becoming increasingly difficult to do business in Europe, with all kinds of taxes, packaging, safety laws, and insurance. However, it can also eliminate some bad sellers. It is hard to say whether it is a good or a bad thing.

"Wonderful Reply"

ray13823288779

This morning, many customers asked whether the insurance they bought previously covered claims in Europe/UK/Canada. I contacted the company's product manager as soon as possible and got the following reply:

If the special terms in the Chinese insurance contract specify that only the US site is covered, additional coverage of the European site requires a separate insurance policy; if the special terms do not limit the US site, it can be considered to cover the entire Amazon site. The customer needs to provide the insured products and sales of the European site, and the corresponding European site premium will be increased according to the current plan rate. (Since last year, the special contract has no restrictions on sites)

Here is some basic knowledge. Territory/Jurisdiction in English insurance policies refers to the jurisdiction. The risk from low to high is: Chinese Jurisdiction (excluding Hong Kong, Macau and Taiwan) > Chinese Jurisdiction (including Hong Kong, Macau and Taiwan) > Global Jurisdiction (excluding the United States and Canada) > Global Jurisdiction (including the United States and Canada). Worldwide including USA/Canada refers to the world's jurisdiction (including the United States and Canada). Therefore, the US insurance previously purchased is applicable to the European/UK/Canada sites.

However, the special terms of the insurance policy are different for each insurance company and have gone through several iterations, so you need to check whether the special terms in the Chinese insurance policy you previously purchased state that only the US site is covered. If it does, you need to purchase a new insurance policy. If it does not specify that it is only for the US site, then it is universal and you can use one policy to cover all sites. If the products sold on the US site and other sites are different, you need to contact the insurance company's customer service or account manager to modify it, and then re-open a new English certificate and upload it.

"Wonderful Reply"

ray13823288779

This morning, many customers asked whether the insurance they bought previously covered claims in Europe/UK/Canada. I contacted the company's product manager as soon as possible and got the following reply:

If the special terms in the Chinese insurance contract specify that only the US site is covered, additional coverage of the European site requires a separate insurance policy; if the special terms do not limit the US site, it can be considered to cover the entire Amazon site. The customer needs to provide the insured products and sales of the European site, and the corresponding European site premium will be increased according to the current plan rate. (Since last year, the special contract has no restrictions on sites)

Here is some basic knowledge. Territory/Jurisdiction in English insurance policies refers to the jurisdiction. The risk from low to high is: Chinese Jurisdiction (excluding Hong Kong, Macau and Taiwan) > Chinese Jurisdiction (including Hong Kong, Macau and Taiwan) > Global Jurisdiction (excluding the United States and Canada) > Global Jurisdiction (including the United States and Canada). Worldwide including USA/Canada refers to the world's jurisdiction (including the United States and Canada). Therefore, the US insurance previously purchased is applicable to the European/UK/Canada sites.

However, the special terms of the insurance policy are different for each insurance company and have gone through several iterations, so you need to check whether the special terms in the Chinese insurance policy you previously purchased state that only the US site is covered. If it does, you need to purchase a new insurance policy. If it does not specify that it is only for the US site, then it is universal and you can use one policy to cover all sites. If the products sold on the US site and other sites are different, you need to contact the insurance company's customer service or account manager to modify it, and then re-open a new English certificate and upload it.

Many sellers purchase insurance based on the minimum sales amount, which is risky. To be more compliant, the sales amount of sites other than the US site must also be included. Since the premium is related to the risk of the product and the estimated sales amount for the whole year, this will definitely lead to an increase in premiums. Currently, there are two main types of clauses regarding sales amount at the time of insurance in various insurance companies. One is to pay in proportion, and the other is to pay after making up the payment. You need to check the specific type of the policy contract.

1. Compensation on a pro rata basis: This policy is insured based on the insured's estimated annual sales. After an accident occurs, if the company's actual sales are higher than the estimated sales (based on the estimated monthly average sales, the annual sales are calculated based on 12 months), compensation will be paid within the compensation limit agreed in the insurance policy based on the ratio of the estimated sales to the actual sales.

2. Compensation after supplementary payment: This policy is insured based on the insured's estimated annual sales. After the accident, if the company's actual sales are higher than the estimated sales (based on the estimated monthly average sales, the annual sales are calculated based on 12 months), the insured needs to make up the premium before compensation.

Therefore, when taking out insurance, you need to consider how much sales will be reported and whether the risks caused by this will be transferred to the insurance company or retained by yourself.

PICC PICC Property and Casualty Insurance - Amazon Commercial Comprehensive Insurance PICC Official Policy Starting from RMB 850

Support from: GOTOGOON , aries45 , amazon666 , Sheldon123

According to the latest official insurance requirements of Amazon Canada and Europe (May 29, 2024), the following solutions are provided for multi-site customers:

1. If the company entity and store name of the Canadian site (1) are the same as those of the U.S. site, the original U.S. site insurance policy can cover it.
If the cumulative estimated sales of the two sites exceed the original insured sales or there are products sold that are different from those of the U.S. site, it is necessary to report to PICC for additional premium approval, otherwise the claim will be paid on a proportional basis.
(2) If the company entity or store name is inconsistent with that of the U.S. store, a new insurance policy must be purchased.
Sample store information declaration:
Site: Amazon.ca
Store name: XXXXXX (if any)
Store Token: A123456789 (if any)
Products sold: XX, XXX, XXXX

2. If the European site (1) is the same as the store company of the U.S. site but the store name is different, the specific country URL, store name, token information, estimated annual sales of the new site, and all sales products of the European site shall be reported to PICC. PICC will provide insurance based on the sales products and cumulative sales, and provide new certificates and insurance approval forms.
(2) If the company entity and store name are inconsistent with the U.S. store/there is no U.S. store, you need to purchase a new insurance policy.
(3) Sample of store information declaration:

Site: Amazon.fr/Amazon.de/Amazon.es/Amazon.it/Amazon.it/Amazon.nl/Amazon.co.uk, etc. Store name: XXXXXX (if any)
Store Token: A123456789 (if any)
Products sold: XX, XXX, XXXX

Anonymous user

Agree with: GOTOGOON

Each site reaches the threshold for purchasing insurance:
• Five thousand euros (€5,000) (if the Amazon Site is the German Amazon Site, the French Amazon Site, the Italian Amazon Site, the Spanish Amazon Site or the Dutch Amazon Site),
• four thousand pounds sterling (£4,000) (if the Amazon Site is the UK Amazon Site),
• fifty thousand Swedish kronor (kr50,000) (if the Amazon Site is the Swedish Amazon Site).
Because Amazon’s European backend does not have an entry for uploading insurance policies.

The customer service response was:
Provide us with a certificate of insurance evidencing the coverage required by this Section 8 to: Amazon Services Europe S.àr.l., 5, Rue Plaetis, L-2338 Luxembourg, Attn: Risk Management., with a copy to: Amazon, PO Box 81226, Seattle, WA 98108-1226, USA, Attn: Risk Management.

GOT OGOON • Taiyuan • 23 hours ago

Thanks for your reply. (If the Amazon website refers to the German Amazon website, the French Amazon website, the Italian Amazon website, the Spanish Amazon website or the Dutch Amazon website) it means that it is calculated based on a single site, right? Instead of adding up the entire Europe to 5,000.

Cc ci666 • Shenzhen • 23 hours ago

@GOTOGOON : Customer service said that this insurance is universal, and the common sites include Amazon Belgium, Germany, Spain, France, Italy, the Netherlands, Poland, Sweden and the UK mall (hereinafter referred to as "EU and UK mall")

GO TOGOON • Taiyuan • 23 hours ago

@Ccci666 :okay I understand,,, but I have another question about the "sales threshold": for example, for my sites in Poland, Sweden, and Belgium, the sales of each site are definitely not enough for €5,000, so I don't need insurance, and only insure the site that is enough for €5,000 (after all, with one more site, the insurance premium must be a little higher)