Amazon Seller Insurance Requirements (2025 Guide)
Amazon Seller Insurance Requirements (2025 Guide)
You’re not just selling products on Amazon – you’re building a business. But hit $10,000 in sales in a single month, and Amazon flips the switch: you’re now required to carry commercial liability insurance. It’s a serious policy shift that many sellers ignore – until their payouts are frozen or their listings vanish overnight.
This guide is your plain-English, seller-first walkthrough of what Amazon really expects, what to avoid, and how to get it done without losing momentum – or your sanity.
Why Amazon Requires Insurance
Think of it this way: Amazon is a trillion-dollar company with lawyers on speed dial. It doesn’t want your hot-selling garlic press – or a faulty phone charger – creating legal firestorms. So Amazon transfers the liability back where it belongs: to the seller.
Picture this: a simple Bluetooth speaker malfunctions and starts a fire. A customer complains. Without proper insurance, Amazon can hold you accountable for damages, medical bills, and brand trust fallout. If you’re not protected, your profits – and your account – are on the line.
In short: if you sell it, you own it. And you’re expected to carry the liability too.
When Insurance Becomes Mandatory
According to Section 9 of the Amazon Services Business Solutions Agreement, once your account hits $10,000 in gross sales within a single calendar month, you have 30 days to submit proof of liability insurance.
This applies whether you’re using FBA or FBM. And Amazon can ask for your Certificate of Insurance at any time – even before you hit that threshold.
If they do? That’s not a suggestion. It’s a warning.
What the Policy Must Include (Based on Amazon’s Official Rules)
To stay compliant, your policy must:
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Be commercial general, umbrella, or excess liability.
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Be written on an occurrence basis (claims-made only if allowed by category and paired with a 3-year tail).
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Cover at least $1,000,000 per occurrence and $1,000,000 aggregate.
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Include coverage for products, completed operations, bodily injury, and related business operations.
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Have a deductible of no more than $10,000, clearly stated on the COI.
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Cover every product you list on Amazon.com.
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Name “Amazon.com Services LLC and its affiliates and assignees” as Additional Insureds.
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Contain no sunset clause.
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Show your legal entity name (matching what’s in Seller Central).
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Be issued by a provider with global claims handling and rated A- or better by S&P or AM Best.
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Be fully completed and signed.
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Include a clause guaranteeing Amazon 30 days’ notice of cancellation or policy change.
How to Upload Your COI (the Right Way)
- Login to Seller Central.
- Navigate to Settings > Account Info.
- Find Business Insurance, then click Upload Certificate.
Your COI must:
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Match your legal entity (not just your store name).
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Be signed, display your coverage limits, and show the deductible.
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Remain valid for at least 60 days after submission.
Sellers frequently get rejected over tiny issues – like uploading a COI with the wrong name or missing the deductible line. And no, Amazon doesn’t explain why. You just get a rejection notice and a ticking clock.
What Happens If You Ignore It
If you’re not insured – or if your COI is invalid – Amazon can:
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Freeze your disbursements
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Take down listings
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Suspend your entire account
Worse? If a customer files a claim while you’re uninsured, Amazon might pay the customer directly… and then deduct every cent from your seller balance.
We’ve seen sellers lose five figures from one preventable paperwork mistake.
Approved Providers (Amazon’s Accelerator + Others)
Amazon Insurance Accelerator (powered by Marsh) lets you compare compliant quotes directly in Seller Central from:
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Chubb
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Hiscox
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Liberty Mutual
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Next Insurance
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Markel
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Travelers
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Harborway (Spinnaker)
Real sellers report costs between $250 and $600 per year, depending on risk level and product category.
Prefer a broker who knows Amazon’s quirks? Here are trusted alternatives:
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Spott
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Insureon
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Thimble
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Simply Business
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The Hartford
Choose a provider who knows how to structure a compliant COI – one missing field can cost you days of downtime.
The Most Common Mistakes That Get Sellers in Trouble
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Uploading a claims-made policy without approval.
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Leaving off Amazon as Additional Insured.
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Submitting your storefront name instead of the legal entity.
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Using a provider without global claims capability.
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Leaving the deductible section blank on your COI.
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Letting the policy lapse or expire silently.
Amazon won’t warn you. They’ll just shut things down.
To Summarize
This isn’t about jumping through hoops. It’s about protecting your business from a sudden – and sometimes devastating – shutdown.
The good news? Once you understand the rules, compliance is easy. You can get covered in 48 hours with the right broker, upload the COI, and check it off your list.
We’ve helped thousands of sellers fix rejected insurance uploads, appeal account suspensions, and stay one step ahead of Amazon’s compliance radar.
If you’re unsure, we’ll guide you through it – document by document.
Don’t let one missed field or late upload stop your momentum. Get insured. Stay compliant. Keep selling.
