Amazon seller insurance requirements explained.

You check your Seller Central notifications one morning and see the message: Amazon is requesting proof of commercial liability insurance. You've been selling for a year, growing steadily, and never thought about insurance. Now there's a 30-day window and a list of requirements that reads like a legal document. This guide walks through what Amazon actually requires, when the requirement kicks in, what the policy must contain, what happens if you don't comply, and what sellers typically pay — without pretending to be your insurance broker.

When the insurance requirement applies

Amazon's standard insurance requirement is triggered by a sales threshold, not by time on the platform. The published rule is straightforward: once gross proceeds from Amazon.com sales exceed $10,000 in any single month, the seller must obtain and maintain commercial liability insurance within 30 days[reference:0]. Amazon may also request proof of insurance at any time, regardless of sales volume[reference:1].

Two details catch many sellers off guard:

• It's "in any month," not "per month." A single month above $10,000 triggers the requirement. It does not need to be sustained, and it does not need to be consecutive.
• The requirement does not go away when sales drop. Amazon's Business Solutions Agreement states that once the threshold is exceeded, the seller must maintain insurance "throughout the remainder of the Term" of the selling agreement. Sellers who later fall below $10,000 per month are still obligated[reference:2].

New requirement effective November 2, 2026

Amazon has announced an update that expands the requirement beyond the sales threshold. Starting November 2, 2026, sellers in product categories with enhanced safety listing requirements must carry $1 million in coverage regardless of monthly sales volume[reference:3]. This means a seller in an affected category can be required to carry insurance from day one, even before reaching $10,000 in a month.

Amazon has also announced that sellers based in Mainland China must obtain new policies through the Amazon Insurance Accelerator (AIA) program starting the same date[reference:4]. Sellers outside Mainland China can generally continue to use any licensed insurer that meets Amazon's requirements.

What the policy must include

Amazon does not accept just any business insurance policy. The published requirements are specific, and a policy missing any of them will be rejected during review. The table below summarizes what Amazon requires, followed by detail on each point.

Coverage limit — $1M per occurrence and $1M aggregate

Amazon requires a minimum of $1 million per occurrence and $1 million in aggregate[reference:5]. Some sellers report being asked for higher limits, but the published policy states $1 million as the minimum. The "per occurrence" limit is the maximum the policy will pay for a single incident; the "aggregate" limit is the maximum it will pay across all incidents during the policy period.

Policy type — commercial general, umbrella, or excess

Amazon accepts three policy types: commercial general liability (CGL), umbrella liability, or excess liability[reference:6]. A CGL policy is the most common starting point for small sellers. Umbrella or excess policies typically sit on top of an existing CGL policy and increase the total coverage limit.

Policy form — occurrence-based, not claims-made

This is one of the most common reasons for rejection. Amazon requires the policy to be written on an occurrence basis. An occurrence-based policy covers incidents that happen during the policy period, regardless of when the claim is filed. A claims-made policy covers claims filed during the policy period, regardless of when the incident occurred. If a seller submits a claims-made policy, it will not meet the requirement.

Product liability must be included

Amazon requires the policy to include product liability coverage — protection against claims that a product the seller sold caused injury or property damage after purchase[reference:7]. This is distinct from general liability, which typically covers incidents arising from the seller's business operations rather than the products themselves. Many standard small-business policies do not automatically include product liability, so sellers often need to request it explicitly.

Amazon named as additional insured

The policy must name "Amazon.com Services LLC and its affiliates and assignees" as an additional insured[reference:8]. This means that if a claim arises from a product the seller sold on Amazon, Amazon is also protected under the same policy. Sellers typically ask their insurance provider to add Amazon as an additional insured via endorsement and confirm the exact legal entity name appears on the certificate.

Insurer rating

The insurance provider must have a financial rating of S&P A- or AM Best A- or better[reference:9]. This is a financial strength rating, and most established commercial insurers meet it. Sellers using smaller or newer insurers should confirm the rating before submitting.

Deductible cap

The deductible for any policy must not be greater than $10,000, and any deductible amount must be listed on the Certificate of Insurance[reference:10]. Sellers should verify the deductible with their provider and confirm it appears correctly on the certificate before submission.

Cancellation notice

The insurance provider must give Amazon at least 30 days' notice of cancellation, modification, or nonrenewal[reference:11]. This protects Amazon's interest in the policy remaining in force. Sellers do not typically need to do anything about this beyond confirming that their provider includes the notice provision — it is a requirement the insurer agrees to when issuing an Amazon-compliant policy.

What happens if you don't have insurance

Amazon's published policy states that if a seller does not obtain insurance when required, or does not submit a compliant Certificate of Insurance, Amazon may take action. The published consequences include restricting the seller from selling in certain categories or suspending the account until proof of insurance is provided[reference:12].

Seller reports in Seller Central forums describe a similar sequence: an initial request for proof of insurance, a deadline for submission, a warning if the deadline is missed, and eventually a disbursement hold or account suspension if the requirement remains unmet. The exact escalation path and timing can vary by situation, but the pattern is consistent — non-compliance puts selling privileges at risk.

What insurance typically costs

Insurance pricing varies widely based on product category, revenue level, claims history, business location, and the insurer's risk assessment. No single figure applies to every seller, and any quote depends on the specific details of the business.

For context, publicly available pricing information from ecommerce insurance providers suggests the following general ranges:

These are general market signals, not quotes or recommendations. Sellers typically request quotes from multiple providers and compare not just the premium but the coverage terms — whether product liability is included, whether the policy is occurrence-based, whether Amazon is named as an additional insured, and what the deductible is. A cheaper policy that does not meet Amazon's requirements is not a saving; it is a rejection waiting to happen.

Factors that tend to affect pricing

• Product category. Categories with higher injury or liability risk — children's products, cosmetics, food, electronics, fitness equipment — tend to carry higher premiums than low-risk categories like home decor or stationery.
• Revenue level. Premiums generally scale with sales volume, since higher volume means more products in customers' hands.
• Claims history. A prior claim or lawsuit typically increases premiums.
• Coverage terms. Higher limits, lower deductibles, and broader coverage increase the premium.
• Business structure. Entity type, location, and years in operation can all factor into pricing.

Types of coverage — what each one does

Understanding the difference between the main policy types helps sellers have a more productive conversation with their insurance provider.

Commercial general liability (CGL)

CGL covers third-party claims of bodily injury, property damage, and personal or advertising injury arising from the seller's business operations. For an online seller, this might include a customer injured by a product delivery, or a claim related to the seller's marketing. CGL is often the base policy, and product liability can be added to it.

Product liability

Product liability covers claims that a product the seller sold caused injury or property damage after purchase. This is the coverage Amazon specifically requires. It applies even if the seller did not manufacture the product — a seller who distributes a defective product can still be named in a claim. Product liability is often bundled into a CGL policy, but it can also be written as a separate policy.

Umbrella and excess liability

Umbrella and excess liability policies sit on top of a primary CGL policy and increase the total coverage limit. Amazon accepts these as the qualifying policy type, and some sellers use them to meet the $1M requirement when their primary policy has a lower limit. The distinction between umbrella and excess is technical and varies by insurer — sellers typically confirm with their provider which form meets Amazon's requirement.

How marketplace requirements compare

Etsy, eBay, and Shopify do not mandate insurance the way Amazon does[reference:13]. However, sellers on those platforms still carry product liability exposure, and business partners — including wholesale customers, retailers, and event organizers — may request a Certificate of Insurance[reference:14]. Sellers who operate across multiple channels often find that one compliant policy can cover several platforms.

The Amazon Insurance Accelerator

Amazon has assembled a network of pre-vetted insurers through a program called the Amazon Insurance Accelerator (AIA), developed with Marsh. The program connects sellers with providers familiar with Amazon's coverage requirements, which can reduce the likelihood of a policy being rejected for technical non-compliance.

As of the November 2, 2026 update, sellers based in Mainland China must obtain new policies through the AIA program[reference:15]. Sellers outside Mainland China are not required to use the AIA — they can use any licensed insurer that meets Amazon's published requirements. Some sellers choose to use the AIA for convenience, while others use independent brokers or their existing business insurer.

Common challenges sellers run into

Several issues come up repeatedly for sellers navigating Amazon's insurance requirements. What follows is a general description of each — not prescriptions.

Existing policy doesn't meet the requirements

Many sellers assume their existing business insurance covers them. In practice, small-business policies often lack product liability coverage, are written on a claims-made basis, or do not name Amazon as an additional insured. Sellers typically compare their current policy against Amazon's published checklist and ask their provider whether endorsements can bring it into compliance, or whether a new policy is needed.

Certificate rejected for a technical detail

Even a compliant policy can be rejected if the certificate has an error — a misspelled legal entity name, a missing additional insured endorsement, a deductible above the cap, or an incomplete form. Sellers often review the certificate against Amazon's requirements line by line before submitting, and ask their provider to correct any discrepancies first.

Confusion about whether the requirement still applies

Because the requirement does not end when sales decline, sellers who once crossed the threshold sometimes cancel their policy and later discover that Amazon still expects coverage. The obligation continues for the remainder of the selling agreement term. Sellers who plan to keep selling on Amazon typically maintain coverage once it has been triggered.

Renewal and re-submission

Insurance policies renew on a schedule — often annually. When a policy renews, the Certificate of Insurance changes, and the provider must give Amazon at least 30 days' notice of any modification. Sellers typically calendar the renewal date and re-submit the updated certificate through Seller Central. A lapsed or unrenewed policy can trigger a compliance review.

Choosing between competing quotes

Quotes from different providers can vary significantly in premium, coverage terms, and deductible. A lower premium often comes with a higher deductible, narrower coverage, or a claims-made form. Sellers typically compare quotes against Amazon's published requirements and against each other on coverage terms, not just price.

Category-specific requirements

Certain product categories carry higher risk and may be subject to stricter insurance requirements. The November 2, 2026 update adds enhanced safety listing categories that require coverage regardless of sales volume. Sellers in those categories typically verify their specific requirements directly in Seller Central, as the list of affected categories may change.

What to verify directly

Several aspects of Amazon's insurance requirement involve details that change and vary by seller. Sellers typically verify the following directly with Amazon and their insurance provider:

• Current threshold and category requirements — in Seller Central, as Amazon updates its published requirements periodically
• Which product categories require coverage regardless of sales volume — under the November 2, 2026 update
• Whether your existing policy meets the requirements — by comparing the certificate against Amazon's published checklist
• Insurer rating — confirming S&P A- or AM Best A- or better
• Deductible amount and whether it appears on the certificate — must not exceed $10,000
• Additional insured wording — must name "Amazon.com Services LLC and its affiliates and assignees"
• Policy form — must be occurrence-based, not claims-made
• Submission process and deadlines — through Seller Central, within the timeframe Amazon specifies
• State-level requirements — some states have specific insurance regulations that may affect your policy; a licensed professional can confirm

Because Amazon's requirements change and insurance varies by state and provider, verification should be done at the time of decision rather than assumed from general knowledge or older summaries.

The general principle

Amazon's insurance requirement is not optional once it applies, and it does not go away when sales fluctuate. Sellers who treat it as a planned operating cost — like platform fees or shipping — tend to have a smoother experience than those who treat it as a surprise. The practical work is unglamorous: getting a quote, confirming the policy meets each published requirement, submitting a complete certificate, and calendaring the renewal.

The pattern across sellers who handle insurance well is consistent. They find out what the requirements are before they need to comply, they compare policies on coverage rather than just premium, and they treat the certificate as a document that has to be exactly right — not approximately right. None of that is dramatic. But it prevents the account suspensions and disbursement holds that catch unprepared sellers during a busy quarter.