How To Protect Yourself From Amazon Lawsuit! – With Ashlin Hadden
★ Facebook Ecom Insurance
01:45 ► Acquaintance with Ashlin Hadden
05:14 ► Top 10 categories of people who should have insurance
Ashlin’s dedication for helping those in the Amazon business get insurance comes out of her love for the E-com community. Throughout the podcast she emphasized that paying for insurance is better than fighting a legal battle.
The Start Of Her Journey
She started out working in the banking industry as a branch manager. After working in the industry for quite a long time, she decided she wanted out. Her journey in the insurance industry began as a favor to a friend who would get $250 if she went to an interview.
She took the interview just so her friend could get some cash. However, during the interview, she was told that the men in the industry would outperform her daily. She took the job to prove the interviewer wrong and ended up being the top insurance representative in the state and third in the company.
In this episode, Izabella and Ashlin talk about why she decided to go out on her own. In addition, they discuss Amazon sellers who should have insurance, how insurance compensation works, and what Ashlin recommends to Amazon newbies.
Ashlin’s First E-Com Client
Ashlin has been providing insurance to Amazon sellers for the past five years, but the start of her journey was slightly different from what most people think. She got into e-com by accident when a client approached her and said, “I’m a third-party seller on Amazon, and they require me to have this insurance, and I have no idea what I’m doing. Can you help me?”
She initially declined the client due to her unfamiliarity with third-party sellers in the Amazon business. However, the client requested Ashlin for their service multiple times, so she looked at his considerations and got him an insurance policy. Since most insurance agents don’t work with Amazon sellers, the client asked if he could share Ashlin’s information in a Facebook group, to which she agreed.
Her Love For The E-Com Community
Upon becoming a member of the group, Ashlin fell in love with the idea of how members of the group were helping each other despite being competitors. She quickly realized that insurance companies don’t work with these sellers due to a lack of understanding of their business operations. Five years later, she is the only insurance provider focusing specifically on helping sellers with their Amazon business.
You’ll Need Insurance If You’re Hitting $10,000 A Month
Ashlin mentioned that if you are earning $10,000 or more per month you are required to have insurance. In her own words, “That’s when they’re starting to police it.” According to Ashlin, you must have insurance if you’re selling a product in:
- Personal Care.
- Pet Care.
- Child Care.
- Water Products.
- Exercise Equipment.
- Sexual Wellness.
- Medical Care.
The Surgeon Who Sued For Millions
Most people are reluctant to get insurance for some of the product categories like pet care. However, Ashlin shared her experience of how products as trivial as a dog leash can lead to insurance claims worth millions.
She mentioned how a surgeon was walking his dog with a retractable leash that snapped as the dog pulled away. The surgeon went on to sue the company as the leash had hit him in the eye and caused peripheral vision damage. As for settlement, Ashlin said, “I don’t even remember what they settled for, but millions and millions of dollars because he said now he could not perform surgery.”
Not Everyone Reads Instructions
Ashlin also shared her experience of how most sellers believe they have warning labels and instruction manuals, therefore, don’t need insurance. In her own words, “Unfortunately, you can have all the warning labels in the world. That doesn’t stop somebody from suing you.”
She went on to share that she’s worked with sellers who believe that warning labels and instruction manuals make them immune. However, that’s not the case. Ashlin stated having a warning label might protect you from being charged $2 million in a judgment, but you’ll still need to pay legal fees.
Nobody Wants To Pay Insurance Claims
Ashlin shed light on the reality that insurance companies don’t like to pay claims, which is why they hire the best lawyers. She went on to state that if you have insurance coverage, simply call your carrier, and the rest is up to them. You might have to answer a few questions to justify your position on why you should not be getting sued while your insurance provider will make all the required legal efforts to get them out of claims.
Hiring A Business Attorney Isn’t Cheap
The cost of a business attorney is a common concern among entry-level Amazon sellers whose prices can reach around $550 or more. Such prices mean that as an entry-level Amazon seller you might have to pay around $55,000 if you hire an attorney for 100 hours. Such prices often raise concerns about the cost of buying insurance and are one of the key factors that make sellers reluctant to do so.
More Items Means More Insurance
Sharing her expertise on cost insurance, Ashlin stated that the cost of insurance for an Amazon seller depends on three critical factors. They include
- What type of products the seller is selling.
- Where they are sourcing the products from.
- How much of them they are selling.
Insurance for Private Label Sellers Is a Bit Expensive
Ashlin elaborated on the differences between insurance for private-label sellers and those just reselling. She briefly yet comprehensively explained that if you are a private-label seller, insurance would be more expensive because you would be 100% responsible for the products.
However, she also mentioned if you are just reselling items, she would contact the original manufacturer to pay the insurance claims. She further emphasized that her most expensive insurance policy costs around $150,000.
Working With Amazon Sellers
Ashlin emphasized that insurance costs for entry-level Amazon sellers aren’t as expensive as you might assume. She clarified that her prices are reevaluated yearly, and insurance costs are finalized based on your earnings.
She mentioned if you’re selling up to $250,000 yearly you’ll pay under $800 for insurance. She also shared that most of her private-label sellers pay around $1,500 per year in insurance if they sell low-risk products such as caps, mugs, home decor, and more. Ashlin further emphasized the need for insurance by sharing an example where the company paid over $600,000 in legal fees to protect its client.
Looking For A Quote?
Ashlin has been providing insurance to E-com businesses for the past five years and is currently the only provider who focuses solely on Amazon sellers. If you’re looking for a quote you can reach out to Ashlin on ecom.insure or contact her on Facebook, Instagram, or Twitter.