The online shipping giant Amazon has announced that the group will pay up to an amount of $ 1,000 for damage caused by third-party products from September 1. Behind this is a strategic maneuver by the company to gain a foothold in the insurance industry.
• Amazon liable for up to 1,000 euros
• traders need liability insurance to complete
• Amazon are the conditions
This makes it easier for Amazon customers to get their money
If there is personal injury or property damage as a result of a product ordered through Amazon , the injured person is usually entitled to compensation. As the Süddeutsche Zeitung reports, the online giant has now announced that claims will be made easier for customers from September 1st. Instead of having to contact third-party providers as before, customers can now contact Amazon directly to claim damages. Amazon wants to pay for damages up to an amount of $ 1,000 without asking for a refund from the merchants. This offer was previously only valid in the USA, now it is to be expanded to other countries as well.
Amazon’s next move – the Amazon Insurance Accelerator to make it easier and more affordable for US sellers to protect their businesses https://t.co/l0BiFmRnlg
— Andre Schlieker (@andreschlieker) August 21, 2021
The Financial Times sees a statement on the part of the US Consumer Product Safety Commission as one reason for this new regulation: In this statement, the commission had declared that Amazon had to take responsibility for products with which there is a risk of “serious injury or death” .
Retailers and insurers have to play by Amazon’s rules
However, if a dealer wants to make use of this guarantee, he must first take out liability insurance. Amazon specifies exactly which conditions this policy must meet. According to the Süddeutsche Zeitung, for example, the coverage must be at least one million dollars and the deductible paid by the dealer must not exceed the amount of 10,000 dollars.
For the purpose of this insurance requirement, Amazon founded the so-called Amazon Insurance Accalerator, a network of insurers through which Amazon wants to broker liability insurance for retailers. The insurance companies involved must also adhere to the Group’s guidelines. Amazon reserves the right, for example, to check the claim again itself in the event of a rejection by the insurer. Should one then be convinced of the legitimacy of the claim at Amazon, the group would compensate the customer itself and get the money back from the insurer. The deadline is also dictated by Amazon: insurers have 30 days to process a claim. After this period has expired, Amazon has the right to intervene and take over the settlement of the damage.
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Amazon dares to venture into the insurance industry
With this concept, Amazon is taking a big step into the insurance business. The well-known companies Munich Re , Chubb and Hiscox are already involved in the Amazon Insurance Accelerator . The wholesale broker Marshhas adapted its policies to Amazon’s specifications. Despite the strict framework conditions, more and more insurance companies are participating in the Insurance Accelerator. According to a presumption by the Süddeutsche Zeitung, the reason for this could be the insurers’ calculation that they can win a large number of small and medium-sized companies as customers through Amazon. It remains to be seen to what extent Amazon will expand the program to other countries and expand the offer. For example, policies for private customers and offers for companies that go beyond liability protection would also be conceivable in the future.