Amazon Account Suspension Insurance (Ashlin Hadden 2 of 2)
British Amazon Seller · 18 minutes ·

Amazon Account Suspension Insurance (Ashlin Hadden 2 of 2)

Today’s show is part 2 of the interview with Ashlin Hadden of Ashlin Hadden Insurance. We discuss Amazon account suspension insurance.

Insurance is an area that tends to strike fear or boredom into people’s hearts but Ashlin has a way of making it all very palatable. Which is good because you really need to know this stuff. In the first part of this interview, we talked about Ashlin’s story and the requirements around Amazon liability insurance for Amazon sellers.
Amazon Account Suspension Insurance
Ashlin Hadden Insurance has created the first ever account suspension policy for eCommerce sellers (which includes Amazon, eBay, and other platforms) that will help pay your lost income if you’re suspended. This is a Lloyds of London policy, and it’s fairly reasonably priced. The policy is a 90-day aggregate and you can qualify for 250,000, 500,000 or a million dollars in coverage, depending on how long you’ve been in business.
How it Works
When you get the email to say your Amazon account is suspended, you call the 1800 number like you do with any type of claim for your auto or home or commercial insurance policy. We will get you in contact with an account reinstatement specialist. For example, CJ Rosenbaum who has been on the show before and then have 120 hours to get you unsuspended. You’ll make the contract with them and pay whatever fees there are. You must keep that receipt that you paid because you will be reimbursed up to $500 for that. If they don’t get your account unsuspended within that first 120 hours then the insurance starts paying your loss of income back to day 1 of suspension. This is coverage for your bills, so your payroll, owner draw, cell phone bills, storage fees, internet bills etc.
What It Does and Doesn’t Do
Amazon account suspension insurance does help you get reinstated as quickly as possible through experts like CJ Rosenbaum. Assuming you do have to use the actual insurance, the policy will cover the ongoing overheads like payroll and internet bills.

It does not cover direct lost sales. However, if you’re taking those sales out as an owner’s draw then it is covered. However, you have to show that there’s a loss there. As long as you can show that you’re taking that then it is covered.

For example: let’s say there’s $25K revenue, with $10K profit, and $2K for owner’s draw. There’s $8K left that was profit going back into the business. If you’re leaving the $8000 in the business then it isn’t covered that because it’s not a loss. However, if you were to take that out as owner’s draw then the $8000 would be covered plus the expenses. The figures are based on the previous 12 months, so it’s a rolling 12 month period.
Exclusions to the Policy
By far the biggest exclusions is lying on the application. If you are not completely honest on the application, that will be the thing they look at to deny a claim. For example, if you say you’ve never been suspended on the application, then you get suspended; if they go into your seller central and see that you’ve been suspended before, you will end up with no coverage. Making sure that you’re 100% honest on the application is most important.

Violating a prohibited items list on your terms of service with Amazon will also be not covered. Anything you get suspended for that is on that list isn’t covered.

The other big one is the intentional violation of the Amazon terms of service. Anybody who gets suspended is violating the terms of service. But it’s the intentional violation that specifically is what is being looked for here.

Be honest and making sure you’re following terms of service. Amazon doesn't always make that very clear so it is worth digging through for anything to do with any borderline activity, any grey areas. If you’re going to try to make money with it, if there’s any question whatsoever, you must double check.
Other Terms and Conditions
This Amazon Account Suspension Insurance is only open to the U.S.

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