How one Amazon Seller’s Fears Disrupted the Insurance Industry

Why is Amazon Suspension Insurance being sold from a small agency in Kentucky?  How did this all begin? It is pretty simple actually, it began because there is a successful Amazon business that resides there that was looking for more out of its General Liability Insurance than it could provide.  You have heard that Necessity is the mother of all invention, and that could not be more true in this situation.

I am one of the founders of Where the Polka Dots Roam a family owned custom designed bedding company that sells online via multiple platforms.  Like many e-commerce businesses that list on Amazon, our Amazon sales started to grow rapidly and with it so did our purchase orders and inventory.  It was s wonderful thing to watch happen, but as purchase orders and overhead expenses rose so did my anxiety. I was suddenly very aware that a large portion of our business was being built on a platform we do not own.  This isn’t just business.  This is personal.  This is about the livelihood of my family.

Amazon wants to make sure the consumer always has the best possible experience which is why it is so successful. If Amazon has any concerns about a product or business, they can and often times will suspend a seller account while they investigate the situation.  In essence, this means that a seller is always guilty until proven innocent. The implications of this practice for a seller can be devastating.  Having your account suspended is the equivalent of someone going to a local store owner and telling them they have to lock their doors until further notice, even if they did nothing wrong.  What would happen?  Their sales would stop, but their expenses would continue.  How long can a company withstand that loss of income?

It is this fear that caused me to go to my General Liability Insurance agent, Nicole Welden, and ask her if my insurance would cover us if our Amazon Seller Account was suspended.  Nicole and her partner, Matt Lovell researched it and concluded that it would not and, moreover there was nothing on the market that I could purchase that would cover us in that scenario.

That is essentially the moment that WELL Insurance Agency was born.  Matt and Nicole happened to have a good working relationship with James Allen Insurance, a large General Agency that works directly with Lloyd’s of London.  They believed if any company would consider underwriting this, it was Lloyd’s of London.  After speaking with Tim Craig, the CEO of James Allen Insurance, he agreed that this was a product worth pursuing. That is when the quest began to build a policy that would satisfy this great void in the market.

As of March 1, 2016 the Amazon Suspension Insurance policy is now available to purchase directly through WELL Insurance Agency.  This policy will not replace your General Liability insurance which Amazon requires every seller to carry or risk being suspended, this policy is specifically designed to cover a seller in the instance of an account suspension and works with all e-commerce platforms.

We are so proud to offer this and to work with Amazon Sellers directly to help them regain some control and power over their livelihood.  I know as a fellow seller just how hard these men and women have worked to build their business and I know the fear they have of their account being suspended.  Most sellers are trying their best to follow Amazon’s policies and try to use best business practices, however mistakes and misunderstandings can happen. I pray I never have to file a claim on this policy, but I can sleep better at night knowing that I have a policy that will back me up in case a suspension happens.

You can find Lori Jurans with WELL Insurance Agency and over at Where the Polka Dots Roam

By |2017-08-31T00:18:30+00:00March 16th, 2017|General|Comments Off on How one Amazon Seller’s Fears Disrupted the Insurance Industry

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