Amazon was found responsible for its products! A wave of strict insurance inspections is coming

This time, the customer bought a hoverboard product from a third-party seller on Amazon, and was injured due to product defects, so he wanted to sue Amazon to make the official pay compensation. Although Amazon has been involved in various product safety disputes in the past, there are precedents of losing the case, but it is quite rare, and most of them can get away with it. And this time the customer is quite smart and far-sighted. He did not sue Amazon directly for compensation, but used the personal insurance he bought to reimburse his medical expenses and losses, and asked the insurance company to initiate a subrogation claim, allowing the insurance company to sue Amazon.

It is difficult for an individual to seek compensation from a large company like Amazon. In this case, it became an insurance company that is also a large company versus Amazon. In the end, Amazon lost the case almost the fastest in history and was ordered to bear the liability for compensation.

This shows the cleverness of Amazon's mandatory product liability insurance. Since the seller's products are uncontrollable and there is no guarantee that there will be no problems, and there is also the risk that the seller may run away at any time, the safest way for Amazon is to force sellers to buy liability insurance.

It can be seen that after losing this lawsuit, Amazon will definitely encourage more sellers to purchase commercial insurance to reduce its own compensation risk. From this perspective, Amazon’s cancellation of the new insurance policy that had only been implemented for a month and a half may have further purposes.

The new policy that was cancelled two days ago required sellers with annual sales of less than 1 million to not purchase insurance with a deductible, which increased the cost and threshold for many sellers to buy insurance. The cancellation of this new policy means that Amazon allows small sellers to buy commercial insurance with a deductible, and the further purpose is to lower the threshold for sellers to buy insurance, so that as many sellers as possible have insurance.

Therefore, I can boldly speculate that the follow-up to the cancellation of the mandatory no-deductible requirement is to lower the sales threshold for compulsory insurance. Now sellers with monthly sales of more than $10,000 for three consecutive months are required to buy insurance, but in the future it may be reduced to $8,000 or even $5,000. The change in the threshold will be accompanied by a wave of strict inspections and screening to reduce the situation of qualified sellers "running naked" without insurance.