NAS Insurance Services has announced the launch of Momentum, a new insurance product for online sellers.
Momentum is a business-interruption product aimed at people who sell products on online marketplaces like Amazon. If the seller’s account is suspended by an online vendor, Momentum will help them cover their financial losses and get back into business.
“There are over one million sellers on Amazon in the United States, and all of them are at risk of having their account suspended, interrupting their ability to sell and generate income,” said Michael Palotay, NAS chief underwriting officer. “In the same way a retail store would carry insurance coverage for a flood or fire, we saw a need for online sellers to have a solution they could turn to when their business was suspended.”
Suspension can occur for many reasons. Amazon, for example, has rigorous rules its online sellers must comply with, and failure to meet them can result in account suspension.
“While most sellers strive to adhere to Amazon’s policies, there is mounting evidence that even those who are compliant have faced an account suspension for an alleged violation,” said Jeremy Barnett, NAS vice president of marketing and business development. “With Momentum, these online sellers have an affordable insurance solution that protects them from financial loss, while providing the peace of mind that is essential for any business owner.”
Momentum’s core coverage starts at $250 annually and provides reimbursement for financial loss sustained during a suspension. The policy also provides reimbursement for the cost of a reinstatement specialist to help sellers through Amazon’s appeal process. It also covers tax audit expenses in the event of an IRS audit.