Do Amazon sellers need liability insurance?

When Amazon requires insurance

Amazon’s long-standing rule, restated by Amazon staff in a 2026 Seller Forums guide, is that you must obtain and maintain commercial liability insurance within 30 days after exceeding $10,000 in gross proceeds from Amazon.com sales in one month, or whenever Amazon otherwise requests it.

In a September 3, 2026 notice, Amazon added two triggers that take effect on November 2, 2026. The $10,000 rule stays in place for everyone else.

If Amazon decides you need new or updated coverage because of the categories you sell in, it will email you and give you 45 days to provide proof. Listings in enhanced safety categories may be deactivated until you comply. Listings in other categories are not affected.

Which product categories are affected

Amazon’s notice names children’s products, cosmetic and ingestible products and lithium battery products, and says the list is not limited to those. The full list sits behind a Seller Central login. As reproduced in September 2026 by PPC Land and by Ecom Insurance, an e-commerce insurance broker, it has 11 categories:

Amazon says the list can change and may not capture every product subject to these requirements. Check Account Health in Seller Central for the requirements on your specific listings.

• Children’s products, such as toys, car seats and infant sleep products
• Consumable and ingestible products (Amazon’s notice also names cosmetics)
• Lithium batteries and battery-powered products, including e-mobility devices and portable power supplies
• Fire-related products and general household devices such as small kitchen appliances
• Home medical devices, personal safety equipment and water and marine safety products
• Outdoor power and heating equipment
• Sleep products such as mattresses, and transport-related products such as tires

What your policy must include

Amazon checks each certificate of insurance against a fixed list, and one missing detail can get it rejected. According to Amazon’s Seller Forums guide, the policy must meet all of these:

You upload the certificate on the Business Insurance page under Account Info in Seller Central, then enter the carrier, policy number, dates and limits.

• Commercial general, umbrella or excess liability, written on an occurrence basis (PPC Land reports exceptions for certain product categories).
• At least $1 million per occurrence and $1 million in aggregate.
• Coverage for all products you list in the Amazon.com store.
• “Amazon.com Services LLC and its affiliates and assignees” named as additional insureds.
• An insured name that matches the legal entity name in your Seller Central account.
• An insurer rated A- or better by S&P or AM Best that gives Amazon at least 30 days’ notice of cancellation or nonrenewal.
• Deductible: the guide says Amazon has required zero-deductible policies since June 2022, although sellers with more than $1 million in gross proceeds over the last 12 months may be allowed a deductible of up to $10,000, shown on the certificate.

What Amazon seller insurance costs

Insureon publishes the median premiums its Amazon seller and retail customers pay. General liability, the policy most sellers use to meet Amazon’s rule, comes in at about $42 a month. Insureon’s typical BOP for Amazon stores has a $1 million per-occurrence and $2 million aggregate limit with a $500 deductible, so check the deductible against Amazon’s rule before you buy.

Insureon’s product liability cost page, updated April 2026, puts Amazon and e-commerce retailers closer to $46 a month, with price driven by the products you sell, your location, revenue, employees and claims history. Larger sellers pay more: PPC Land reports EcomCrew found Amazon Insurance Accelerator quotes of $837 to $2,200 a year for a seller with $500,000 to $1 million in revenue.

What the policy covers, and what it does not

Insureon says product liability coverage is usually part of a commercial general liability policy. It pays injury and illness claims tied to products you make or sell, including legal defense, and any business in the supply chain can be sued even if it did not make the product.

The policy that satisfies Amazon leaves several gaps:

• Product recall costs, such as investigating, pulling and disposing of a defective product, need separate product recall insurance.
• Damage to or theft of your own inventory falls under commercial property insurance or a BOP.
• Injuries to your own employees, including from your products, fall under workers’ compensation.

How to get compliant without overpaying

A few steps keep the certificate from bouncing and the premium in line:

• Check Account Health and your email, including spam, for an insurance request and its deadline.
• Buy the policy in the exact legal entity name on your Seller Central account.
• Get written confirmation of the $1 million limits, products coverage, Amazon’s additional insured wording and an acceptable deductible before you pay.
• List every product you sell. A policy that excludes a product line will not meet Amazon’s rule that all listed products be covered.
• Consider a BOP if you also hold inventory or rent space. Insureon says small, low-risk Amazon sellers are often eligible.
• Compare quotes from Amazon Insurance Accelerator providers and independent insurers. A broker such as Florin can compare options from several insurers and check the certificate wording before you upload it.