Amazon Seller Liability Insurance: Requirements and How to Comply
Many new Amazon sellers only learn about the insurance rule when a warning appears in Seller Central. Amazon requires commercial liability insurance once your sales pass a set level, and the policy has to meet specific terms, not just "any business insurance." Here is what the rule says, how to buy a policy that passes, and how to upload it without delays.
When you need it
According to Simply Business (Oct 17, 2025) and Jungle Scout, Amazon requires sellers to obtain commercial liability insurance within 30 days after exceeding $10,000 in gross proceeds in a single month on Amazon.com. Amazon can also ask for insurance at other times. Both sources note the requirements may change, so always check the current wording in Seller Central's insurance help page.
Tip: $10,000 in one month arrives quickly during Q4 or a successful launch. Get quotes before you hit it, so you are not buying under a 30-day deadline in December.
What the policy must include
The two sources above describe the same core requirements:
| Requirement | What Amazon asks for |
|---|---|
| Type | Commercial general liability (excess or umbrella liability can also be used), written on an occurrence basis |
| Limits | At least $1,000,000 per occurrence and in the aggregate |
| What it covers | Your business operations, all products you sell, completed operations and bodily injury, including product liability |
| Additional insured | Amazon.com Services LLC and its affiliates (and assignees) |
| Insurer rating | A- or better from S&P or A.M. Best |
| Deductible | Limited (the sources cite no more than $10,000), and any deductible must be shown on the certificate |
| Notice | The insurer must give notice before cancellation or changes (Jungle Scout cites 30 days) |
Source: Simply Business (Oct 17, 2025); Jungle Scout (Mar 13, 2024). Details such as deductible rules have changed over time; confirm them on the Seller Central page before you buy.
What it costs
Price depends on your product category, sales volume, claims history and where your company is based. Jungle Scout cites typical costs of around $500–$1,000 per year, with some policies from around $300 per year and pay-as-you-sell models starting at $26 per month. Treat these as rough reference points: children's products, electronics with batteries, supplements and items that touch the skin or food usually cost more to insure.
Special points for Chinese sellers
- Coverage territory. Make sure the policy covers claims brought in the United States. A domestic Chinese policy often does not.
- Named insured. The insured company name should match the legal entity on your Amazon account exactly, in English.
- All products listed. If you add new categories later, check that the policy still covers them, especially higher-risk products.
- Insurer rating. Ask the broker to confirm the insurer's S&P or A.M. Best rating in writing.
Step-by-step: get compliant
- Collect your data: legal entity name and address, product categories, annual sales estimate, and where products are made.
- Request 2–3 quotes from brokers who already insure Amazon sellers, and send them Amazon's requirements.
- Check the certificate of insurance (COI) line by line: limits, occurrence basis, additional insured wording, deductible and policy dates.
- Upload the COI in Seller Central's insurance section, with the policy number, provider and expiry date.
- Set a renewal reminder 30–45 days before expiry and upload the new certificate as soon as you have it.
- Keep records of supplier test reports and certificates. Insurers and Amazon may ask for them if there is a claim.
Common reasons a certificate is rejected
- Additional insured missing or written with the wrong entity name.
- Limits below $1,000,000 or written on a claims-made basis.
- Deductible not shown or too high.
- Expired policy or dates that don't match the upload.
- Insured name different from the Amazon account's legal entity.
How Atronia Innovations helps
We don't sell insurance, but as part of account management we track compliance deadlines like this one, check documents before upload and keep your account healthy through peak season. See our plans or ask us for an account health check. New to the US? Start with our US market entry checklist.
