Amazon will cover up to $1,000 for damages due to defective products

Amazon has announced a new policy to pay customers directly for claims of property damage or personal injury under $1,000 caused by defective products. The new policy begins on September 1st and will apply to all products sold on regardless of who sells them.

Previously, if you wanted to file a similar type of claim, you had to work with the seller — which has raised questions of who’s really at fault for defective problems sold on the platform. When this policy takes effect, Amazon customer support will facilitate claims between the customer and seller.

According to Amazon, the $1,000 figure covers “more than 80 per cent of cases.” Amazon won’t ask sellers to reimburse them for these payments, but it will inform sellers at every step. Amazon could also pay more if the seller doesn’t respond or rejects a claim it believes to be valid.

Amazon also announced the Amazon Insurance Accelerator. This new initiative will help sellers obtain product liability insurance that is required for selling on the platform. The Accelerator is not required for sellers, but it could prove to be an invaluable tool for anyone looking for insurance.


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