Quick Answer: What Is Amazon Seller Insurance?
Amazon seller insurance generally refers to commercial general liability insurance — often including product liability coverage — purchased by a business that sells on Amazon. It’s designed to help pay for covered third-party claims involving bodily injury, property damage, or advertising injury tied to the products or business operations, along with associated legal defense costs. Amazon’s Business Solutions Agreement requires many professional sellers who exceed certain sales thresholds to carry this coverage, but requirements can change, so sellers should always confirm current terms directly through Seller Central and Amazon’s official policies.
Table of Contents
- What Is Amazon Seller Insurance?
- Why Do Amazon Sellers Need Insurance?
- Does Amazon Require Seller Insurance?
- Types of Insurance Amazon Sellers May Need
- Amazon FBA Insurance
- Product Liability Insurance for Amazon Sellers
- What Does Amazon Seller Insurance Cover?
- What Does Amazon Seller Insurance Not Cover?
- Amazon Seller Insurance Cost
- Amazon Seller Insurance Requirements
- How to Choose Amazon Seller Insurance
- Amazon Seller Insurance Comparison Table
- Hypothetical Amazon Seller Scenarios
- Pros and Cons
- How Much Coverage Should You Consider?
- Common Amazon Seller Insurance Mistakes
- Expert Tips
- Best Practices Checklist
- Frequently Asked Questions
What Is Amazon Seller Insurance?
Amazon seller insurance isn’t a single, official product sold by Amazon itself. It’s a general term for the commercial insurance policies — usually commercial general liability (CGL) and product liability coverage — that an Amazon seller purchases from a licensed insurance company to protect the business against third-party claims.
These policies typically respond to claims that a product sold, or a business activity, caused someone else bodily injury, property damage, or certain other covered harms. The insurer, not Amazon, pays covered claims up to the policy’s limits, and the insurer typically provides legal defense for covered lawsuits as well.
Any business selling physical products on Amazon may want to consider this coverage: private-label brand owners, wholesale resellers, arbitrage sellers, dropshippers, and Amazon FBA sellers all face some version of the same underlying risk — a product reaching a customer and causing harm or damage.
Insurance vs. Amazon’s Marketplace Protections
It’s worth understanding that Amazon’s own marketplace protections — such as its A-to-z Guarantee for buyers, or internal seller performance policies — are not a substitute for business insurance. Those programs exist to manage the buyer-and-seller relationship on the platform itself. They don’t defend you in a lawsuit, pay a legal settlement, or cover a customer’s medical bills after a product-related injury. Insurance is a separate, independent layer of financial protection that exists regardless of what Amazon’s marketplace policies say.
Why Do Amazon Sellers Need Insurance?
Selling physical products carries real, if often invisible, financial exposure. You don’t need to sell anything dangerous or defective for a claim to happen — sometimes a product is used incorrectly, sometimes a batch has a manufacturing flaw, and sometimes a customer’s claim turns out to be entirely unfounded but still requires a legal defense.
Realistic exposure for Amazon sellers includes:
- Customer injuries — a product malfunctions or is used as intended but still causes harm
- Property damage — a product damages a customer’s home, belongings, or another item
- Product-related claims — allegations of a defect, mislabeling, or missing warnings
- Lawsuits — even claims without merit typically require a legal response
- Legal defense costs — attorney fees and court costs that accumulate whether or not a claim succeeds
- Business financial exposure — a judgment or settlement large enough to threaten the business’s assets or the owner’s personal finances, depending on business structure
- Marketplace requirements — Amazon’s own insurance requirements for sellers who cross certain sales thresholds
None of this means every Amazon seller will face a claim. It means the financial consequences of an unlikely event can be large enough that transferring some of that risk to an insurer is worth evaluating for most product-based businesses.
Does Amazon Require Seller Insurance?
Amazon’s Business Solutions Agreement includes insurance provisions for certain sellers. Based on publicly available versions of that agreement and information published by multiple commercial insurers, Amazon has generally required professional sellers who exceed $10,000 in gross proceeds from sales on Amazon.com in a given month to obtain commercial liability insurance, typically within 30 days of crossing that threshold.
Commonly cited elements of this requirement include:
- Commercial general liability insurance, often including product liability coverage
- A minimum of $1 million in coverage per occurrence, with a matching aggregate limit
- Coverage extending to all products the seller has listed on Amazon
- Amazon.com Services LLC (or the applicable Amazon entity) named as an additional insured on the policy
- Submission of a certificate of insurance (COI) through Seller Central for Amazon’s review
These figures reflect commonly reported requirements as of recent public documentation, but Amazon’s policies, thresholds, and enforcement practices can change without much public notice. Because this requirement directly affects your ability to keep selling on the platform, you should always verify the current terms by reviewing your Amazon Services Business Solutions Agreement and any notifications in your Seller Central account, rather than relying solely on this or any other third-party article.
If Amazon requests proof of insurance and a seller doesn’t provide a compliant certificate, consequences can include restrictions on the seller’s account, so it’s worth treating any official insurance request from Amazon as time-sensitive.
Types of Insurance Amazon Sellers May Need
No single policy fits every Amazon business. Depending on your products, revenue, and operations, some combination of the following may be relevant.
Product Liability Insurance
Covers claims that a product you sold caused bodily injury or property damage. This is usually the coverage Amazon is referring to when it asks for proof of liability insurance, and it’s often included within a broader general liability policy rather than sold entirely on its own.
General Liability Insurance
A broader policy that typically includes product liability along with coverage for other third-party claims, such as a customer being injured at a physical event or trade show where you’re selling, or advertising-related claims like using someone else’s trademark without permission.
Commercial General Liability (CGL)
Often used interchangeably with “general liability” in the U.S. market. CGL policies are the standard commercial liability form most small businesses — including Amazon sellers — purchase to meet marketplace or client insurance requirements.
Business Owner’s Policy (BOP)
A bundled policy that can combine general liability with commercial property coverage in a single package. A BOP may make sense for sellers who also want protection for owned inventory, equipment, or a warehouse space, not just liability alone.
Commercial Property Insurance
Covers physical business property — inventory, equipment, and owned or leased space — against risks like fire, theft, or certain other covered losses. This matters more for sellers storing significant inventory outside of Amazon’s fulfillment network.
Cyber Insurance
Relevant for sellers handling customer data, running their own storefront or website alongside Amazon, or otherwise facing exposure from a data breach or cyber incident. Not every Amazon seller needs this, but it becomes more relevant as a business scales its online footprint beyond the marketplace itself.
Product Recall Insurance
Helps cover the costs of removing a defective or non-compliant product from the market, including notification and disposal costs. This is more relevant for sellers in higher-risk categories — food, supplements, children’s products, and electronics, for example — where recalls carry higher financial and regulatory stakes.
Which of these actually apply to your business depends heavily on what you sell, how you sell it, and how much revenue is at stake — a policy built for a private-label supplement brand looks very different from one built for a seller of printed t-shirts.
Amazon FBA Insurance
Fulfillment by Amazon (FBA) is Amazon’s program where sellers ship inventory to Amazon’s warehouses, and Amazon handles storage, packing, shipping, and customer service for those orders. Because Amazon physically handles the product after it arrives at a fulfillment center, some sellers assume FBA removes their liability exposure. It doesn’t — at least not entirely.
As the seller of record, you’re generally still the party responsible if the product itself is defective, mislabeled, or dangerous when used as intended, even though Amazon physically shipped it. FBA can reduce certain operational risks (like damage during your own shipping process), but it doesn’t transfer product liability exposure to Amazon.
FBA sellers commonly consider insurance because:
- Product liability exposure exists regardless of who physically ships the item
- Amazon’s insurance requirements apply based on sales volume, not fulfillment method
- FBA sellers often scale sales volume quickly, which can increase both revenue and claim exposure
- A single product line sold at high volume can generate a large number of units in customers’ hands, increasing the statistical chance that at least one triggers a claim
If you’re an FBA seller trying to determine what coverage fits your business, the starting point is the same as for any Amazon seller: understand what you’re selling, how risky that product category is, and what Amazon’s current insurance requirement is for your account.
Product Liability Insurance for Amazon Sellers
Product liability insurance is coverage that responds when a product is alleged to have caused injury or damage because of a defect, inadequate warning, or similar issue. For Amazon sellers, this is usually the core coverage that matters most, since the entire business model revolves around getting physical products into customers’ hands.
Why it matters for sellers specifically
You can be named in a product liability claim even if you didn’t manufacture the product yourself. Resellers, private-label sellers who source from a manufacturer, and wholesalers can all be pulled into a claim simply because their name is attached to the sale, regardless of who actually designed or built the item.
Examples of the kinds of claims this coverage addresses
- Bodily injury — a customer is physically hurt using the product as intended, or in a foreseeable way
- Property damage — the product damages the customer’s belongings or home
- Product defects — a manufacturing or design flaw that made the product more dangerous than a reasonable customer would expect
- Failure to warn — missing or inadequate instructions or warning labels
- Legal defense — the cost of responding to a claim, even one that’s ultimately found to be without merit
Policy limitations to understand
Product liability coverage isn’t unlimited. Policies carry per-occurrence and aggregate limits, meaning there’s a cap on what the insurer will pay for a single incident and a separate cap for the total paid out during the policy period. Some high-risk product categories may face tighter underwriting, higher premiums, or exclusions specific to that category. Always review the actual policy wording — the marketing summary from an insurer’s website is not the same as the binding contract language.
What Does Amazon Seller Insurance Cover?
Coverage depends entirely on the specific policy you purchase, but commercial general liability and product liability policies commonly address the categories below.
| Coverage Area | What It Generally Involves |
|---|---|
| Bodily injury | Physical injury to a third party connected to your product or business operations |
| Property damage | Damage to a third party’s property caused by your product or operations |
| Product liability | Claims arising from a defect, design flaw, or inadequate warning on a product you sold |
| Advertising injury | Certain claims tied to advertising, such as copyright or trademark disputes in your marketing |
| Legal defense | Attorney fees and court costs for defending a covered claim |
| Settlements and judgments | Amounts paid to resolve a covered claim, up to the policy’s limits |
What’s actually covered in any individual case depends on the specific policy wording, the facts of the claim, and whether the situation falls within the insuring agreement. Two policies both labeled “general liability” can differ meaningfully in scope, so read the declarations page and policy form rather than assuming based on the product name alone.
What Does Amazon Seller Insurance Not Cover?
Every commercial liability policy carries exclusions. Common categories that may not be covered — though this always depends on the specific policy — include:
- Intentional acts — harm caused deliberately is typically excluded from liability coverage
- Certain contractual liabilities — obligations you’ve taken on by contract that go beyond what the law would otherwise require may not be covered
- Known claims or circumstances — issues you were already aware of before the policy started may be excluded, depending on the policy’s retroactive date and terms
- Certain high-risk product categories — some insurers exclude or require separate underwriting for categories like firearms, certain supplements, or specific electronics
- Fraudulent activity — losses tied to fraud or misrepresentation on the seller’s part are generally not covered
- Certain recall-related costs — standard liability policies may not include recall expenses unless a specific recall endorsement or separate policy is added
- Employee injuries — typically require separate workers’ compensation coverage rather than general liability
- Business vehicle accidents — usually require commercial auto coverage rather than relying on general liability
This list is illustrative, not exhaustive — actual exclusions depend on the policy. Ask your insurer directly which exclusions apply to your specific product categories before assuming a gap doesn’t exist.
Amazon Seller Insurance Cost
There is no single price that applies to every Amazon seller, and any number presented as a universal average should be treated with caution. Premiums are set individually based on the specific risk an insurer is underwriting.
Factors that commonly influence cost include:
- Product category and risk level — a seller of low-risk items like books or basic apparel typically presents different risk than a seller of supplements, electronics, or children’s products
- Annual revenue and sales volume — insurers often use revenue as a proxy for exposure, since more units sold generally means more opportunities for a claim
- Claims history — a business with prior claims may see different pricing or underwriting scrutiny than one with a clean history
- Business location — state regulations and the local legal environment can affect pricing and availability
- Coverage limits selected — higher limits, such as $2 million instead of $1 million aggregate, generally cost more
- Deductible chosen — a higher deductible can reduce premium, but increases what you pay out of pocket per claim
- Policy type — a standalone general liability policy may be priced differently than a bundled BOP with property coverage included
Some insurers that specialize in ecommerce and Amazon seller coverage publicly advertise sample monthly rates, and figures in the range of roughly $30 to a few hundred dollars per month appear across various insurer marketing pages. These figures are illustrative examples published by individual insurers for their own products — they are not a guaranteed or universal price, and your actual quote will depend on your specific business information. Request quotes based on your own product categories, revenue, and desired coverage limits rather than budgeting around any single number you see online.
Amazon Seller Insurance Requirements
Beyond the general threshold and limit information covered earlier, a few practical points matter for staying compliant:
Certificate of insurance (COI)
A COI is a document your insurer issues that summarizes your coverage — the policy type, limits, effective dates, and named insureds. Amazon typically requires sellers to upload this document through Seller Central so it can review compliance. A COI is a summary, not the full policy — Amazon and any other party relying on it should still be able to request full policy documentation if needed.
Coverage limits
As referenced above, publicly reported figures point to a $1 million per-occurrence and $1 million aggregate minimum as commonly required. Confirm the exact current figure that applies to your account, since Amazon can adjust these thresholds.
Additional insured status
Amazon has generally required that the appropriate Amazon entity be added to your policy as an additional insured. This isn’t automatic — you typically need to specifically request this endorsement from your insurer and confirm it’s reflected on your COI.
Ongoing seller responsibilities
Insurance compliance isn’t a one-time task. Policies expire and need renewal, business information can change, and Amazon can update its requirements. Build a habit of checking your policy status alongside your other seller account health metrics.
Because these requirements can change and enforcement can vary, treat this section as a starting point for research, not a final answer. Review your current Amazon Services Business Solutions Agreement and any Seller Central notifications for the requirements that actually apply to your account today.
How to Choose Amazon Seller Insurance
Step 1 — Identify the products you sell
List every product category on your Amazon account, not just your best sellers. Coverage needs to extend to everything you’re listed to sell.
Step 2 — Assess product-related risks
Consider how each product could realistically cause injury or property damage, even through normal, expected use.
Step 3 — Determine the coverage you may need
Decide whether general/product liability alone is sufficient, or whether property, cyber, or recall coverage is also relevant to your operations.
Step 4 — Compare coverage limits
Check whether quoted policies meet or exceed Amazon’s current minimum requirement, and consider whether higher limits make sense given your revenue and risk exposure.
Step 5 — Review exclusions
Ask specifically whether your product categories face any exclusions or special conditions under each quote.
Step 6 — Compare deductibles
Understand what you’d owe out of pocket before coverage responds to a claim, and whether that amount is realistic for your business’s cash flow.
Step 7 — Compare premiums
Only compare premiums across policies with matching limits and comparable coverage — a cheaper quote with a lower limit isn’t actually a better deal.
Step 8 — Check insurer suitability
Look into whether the insurer is licensed to operate in your state and has experience specifically underwriting ecommerce or Amazon seller risk.
Step 9 — Verify certificate requirements
Confirm the insurer can issue a COI that lists the correct additional insured party and meets Amazon’s current documentation format.
Step 10 — Read the actual policy
Before purchasing, read the full policy form, not just the summary or the certificate. The policy contract governs what’s actually covered.
Amazon Seller Insurance Comparison Table
| Coverage Type | What It May Cover | Why It Matters | Important Consideration |
|---|---|---|---|
| General liability | Bodily injury, property damage, some advertising claims | Baseline coverage most Amazon sellers need to meet marketplace requirements | Confirm product liability is included, not sold separately |
| Product liability | Injury or damage caused by a product defect or inadequate warning | Core protection for any business selling physical goods | Often bundled within general liability rather than standalone |
| Business owner’s policy (BOP) | Liability plus property coverage in one package | Useful if you store inventory or own equipment outside FBA | Not every business qualifies for a BOP |
| Commercial property | Damage to owned inventory, equipment, or leased space | Relevant for sellers with significant off-Amazon storage | May be unnecessary if inventory is mostly held at FBA warehouses |
| Cyber insurance | Data breach response, certain cyber-related losses | Relevant for sellers with their own storefront or customer data outside Amazon | Less critical for sellers operating solely within Amazon’s systems |
| Product recall coverage | Costs tied to removing a defective product from the market | Important for higher-risk categories like food, supplements, or electronics | Usually requires a separate policy or endorsement |
Hypothetical Amazon Seller Scenarios
The following examples are hypothetical and for illustration only. They are not real cases and don’t represent a guarantee of how any actual claim would be handled.
Scenario: A customer is injured by a product
A customer claims a kitchen tool slipped during normal use and caused a cut requiring stitches. The seller’s product liability coverage may respond to the resulting claim, subject to the policy’s terms, deductible, and limits.
Scenario: A product damages customer property
A customer alleges that a home appliance malfunctioned and caused water damage to their flooring. Depending on the policy, this kind of third-party property damage claim may fall within the general liability coverage the seller carries.
Scenario: An Amazon seller receives a liability claim
A demand letter arrives alleging a product defect. The seller notifies their insurer, who assigns legal counsel to evaluate and respond to the claim as part of the policy’s legal defense provision — a service available even if the claim is ultimately found to be without merit.
Scenario: Amazon requests proof of insurance
A seller’s account crosses the sales threshold that triggers Amazon’s insurance requirement, and Amazon requests a certificate of insurance through Seller Central. The seller needs to supply a COI reflecting the correct limits and additional insured status within Amazon’s specified window to remain compliant.
Scenario: A claim falls under a policy exclusion
A claim arises from a product category the insurer specifically excluded at underwriting, or from an intentional act rather than an accident. In this situation, the policy may not respond, leaving the seller to manage the claim independently — which illustrates why reviewing exclusions before purchasing matters as much as comparing price.
Pros and Cons of Carrying Amazon Seller Insurance
| Pros | Cons / Limitations |
|---|---|
| Can help pay legal defense costs even for meritless claims | Adds an ongoing monthly or annual expense to the business |
| Often required to keep selling on Amazon past certain sales thresholds | Doesn’t cover every type of loss — exclusions apply |
| Can protect personal assets depending on business structure and claim type | Coverage limits mean very large claims could still exceed the policy |
| May extend to sales made outside Amazon if the policy is written broadly | Requires accurate, ongoing disclosure of products and sales volume |
| Can support business credibility with wholesalers, landlords, or other partners | Choosing the wrong policy type can leave real gaps in coverage |
How Much Insurance Coverage Should an Amazon Seller Consider?
There’s no single coverage amount that fits every Amazon business, and this article can’t tell you the exact limit that’s right for yours. Factors worth weighing include:
- Product risk — higher-risk categories generally warrant closer attention to limits and exclusions
- Sales volume — more units in customers’ hands increases the statistical exposure to a claim
- Revenue — larger businesses often have more assets at stake and may consider higher limits accordingly
- Potential claim severity — consider what a serious injury claim tied to your specific product could realistically cost to defend and resolve
- Inventory and business assets — the more you have to protect, the more a property component may matter alongside liability
- Marketplace requirements — your coverage needs to meet or exceed Amazon’s current minimum to remain compliant
- Business location — state-specific legal and regulatory factors can influence appropriate coverage
- Business structure — how your business is legally organized can affect how much personal financial exposure exists beyond the business itself
A licensed insurance agent who works with ecommerce or Amazon sellers specifically can help translate these factors into an actual recommended limit for your situation — this article can only outline the considerations, not replace that conversation.
read also: Life Insurance for Seniors Over 60: The Financial Questions Worth Asking First
Common Amazon Seller Insurance Mistakes
Choosing only based on price
The cheapest policy may carry lower limits, narrower coverage, or exclusions that leave your actual product category unprotected.
Ignoring product liability specifically
Some general liability policies bundle product liability automatically; others require it as a separate endorsement. Confirm which applies to your quote.
Not reviewing exclusions
Skipping the exclusions section is one of the most common ways sellers discover — usually during a claim — that a specific scenario wasn’t actually covered.
Assuming Amazon automatically protects the seller
Amazon’s marketplace policies manage the platform relationship; they don’t replace liability insurance or defend you in a lawsuit.
Using incorrect business information on the application
Misstating your revenue, product categories, or business structure on an insurance application can create coverage disputes later.
Failing to update the policy as the business grows
New product lines, higher sales volume, or new sales channels can all create coverage gaps if the policy isn’t updated to reflect them.
Ignoring certificate requirements
A policy that technically meets Amazon’s coverage limits still needs to be documented correctly — with the right additional insured and the right format — to actually satisfy Amazon’s compliance check.
Not checking coverage limits against actual requirements
Some sellers assume any liability policy is sufficient without confirming it actually meets or exceeds Amazon’s current minimum.
Assuming every product is automatically covered
If you add a new product category after your policy is in place, confirm with your insurer that it’s covered — don’t assume it’s automatically included.
Expert Tips
- Work with an agent who understands ecommerce. An insurer familiar with Amazon’s specific requirements can save you from buying a policy that technically provides liability coverage but doesn’t satisfy Amazon’s documentation format.
- Revisit your policy every time you add a new product category. A quick call or email to your insurer confirming coverage extends to the new product is far cheaper than discovering a gap during a claim.
- Keep your COI current in Seller Central, not just with your insurer. A policy that’s active but not properly documented in your Amazon account can still trigger compliance issues.
- Ask directly what your deductible means in practice. A $2,500 deductible on a $1 million policy is a very different financial commitment than a $10,000 deductible — make sure the number fits your actual cash reserves.
- Don’t wait until you’re near the $10,000 monthly sales threshold to start shopping. Underwriting and certificate issuance take time; starting early avoids a compliance scramble.
Best Practices Checklist
- Confirm your current Amazon insurance requirement directly through Seller Central
- List every product category your policy needs to cover
- Request quotes with matching coverage limits from multiple insurers
- Confirm product liability is included, not just general liability
- Review exclusions specific to your product categories
- Compare deductibles against your actual cash flow
- Confirm the insurer can issue a properly formatted certificate of insurance
- Verify the correct Amazon entity is listed as an additional insured
- Read the full policy document before purchasing
- Set a reminder to review coverage before each policy renewal
- Update your insurer whenever you add new products or sales channels
read also: Renters Insurance for College Students: The Coverage Gap Many Students Overlook
Frequently Asked Questions
What is Amazon Seller Insurance?
It’s a general term for the commercial general liability and product liability insurance that Amazon sellers purchase from licensed insurers to cover third-party claims involving bodily injury, property damage, or related legal costs tied to their products or business operations.
Do Amazon sellers need liability insurance?
Many professional sellers are required to carry it once they cross certain sales thresholds on Amazon, and even sellers below that threshold may want coverage given the financial exposure a single product claim can create. Verify your specific requirement through Seller Central.
Does Amazon require seller insurance?
Amazon’s Business Solutions Agreement has generally required professional sellers who exceed a specified monthly sales threshold to carry commercial liability insurance with minimum coverage limits. Requirements can change, so confirm the current terms directly with Amazon rather than relying solely on third-party summaries.
How much does Amazon seller insurance cost?
Cost varies based on your product category, revenue, sales volume, claims history, location, coverage limits, and deductible. There’s no universal price — request quotes based on your specific business details to get an accurate figure.
What insurance does an Amazon FBA seller need?
FBA sellers typically need the same general/product liability coverage as any other Amazon seller, since fulfillment method doesn’t change who’s ultimately responsible for a defective or dangerous product. Additional coverage like commercial property or cyber insurance may also be relevant depending on your broader operations.
Does product liability insurance cover Amazon sellers even if they didn’t manufacture the product?
Generally, yes — resellers and private-label sellers can still be named in a product liability claim even when a third party manufactured the item, since liability can attach to anyone in the distribution chain. Confirm with your insurer how your specific sourcing model is treated under the policy.
Does Amazon provide insurance for sellers?
No. Amazon requires many sellers to carry their own commercial insurance from a licensed insurer; Amazon itself does not act as your insurer or automatically cover product-related claims against your business.
What is an Amazon certificate of insurance?
A certificate of insurance (COI) is a document from your insurer summarizing your policy’s type, limits, effective dates, and named insureds. Amazon typically requires sellers who meet its insurance threshold to upload a COI through Seller Central as proof of compliance.
Can small Amazon sellers get liability insurance?
Yes. Many insurers offer policies specifically designed for small and newer ecommerce businesses, including sellers below Amazon’s mandatory threshold who want coverage proactively.
Does Amazon seller insurance cover product recalls?
Not usually, unless a specific recall endorsement or separate product recall policy is added. Standard general or product liability coverage is typically focused on third-party injury and property damage claims rather than the costs of conducting a recall.
Can one insurance policy cover multiple products?
Generally, yes — most Amazon seller policies are written to cover all products listed under the business, not a single item. Confirm with your insurer that every product category you sell is actually included, especially after adding new listings.
What should sellers compare when buying insurance?
Coverage limits, deductibles, specific exclusions, whether product liability is included, the insurer’s experience with ecommerce risk, and whether the insurer can issue a properly formatted certificate of insurance that meets Amazon’s requirements.
Does general liability insurance automatically include product liability?
Often, yes, but not always — some insurers bundle product liability into a standard general liability policy, while others sell it as a separate endorsement. Ask your insurer directly rather than assuming either way.
What happens if a seller doesn’t have insurance when Amazon requests it?
Consequences can include restrictions on the seller’s Amazon account until compliant proof of insurance is provided. The exact process and timeline can vary, so review any communication from Amazon carefully and respond promptly.
Is homeowners or personal insurance enough to cover an Amazon business?
Generally, no. Personal insurance policies typically exclude business-related liability and usually won’t satisfy Amazon’s commercial insurance requirement. A dedicated commercial policy is typically necessary.
Should sellers get insurance before or after reaching Amazon’s sales threshold?
There’s no requirement to wait, and starting the process before you’re close to the threshold can help you avoid a compliance scramble, since underwriting and certificate issuance take time to complete.
Conclusion
Amazon seller insurance isn’t a single product — it’s a set of commercial coverages, most commonly general and product liability insurance, that help protect your business from the financial fallout of a product-related claim. Amazon has generally required sellers who cross certain sales thresholds to carry this coverage, but the specific terms can change, so always confirm your current requirement directly through Amazon’s official documentation.
Beyond compliance, the bigger question is whether your coverage actually fits your business: your product categories, your sales volume, and the kinds of claims that are realistic for what you sell. Compare policies using matching limits, read the exclusions carefully, and confirm your certificate of insurance meets Amazon’s documentation requirements before you consider the job done. Reassess your coverage whenever your product lineup, revenue, or sales channels change.