Amazon Seller Insurance Requirements and Options
Amazon's Specific Insurance Requirements
Amazon's Business Solutions Agreement, which all sellers agree to when opening a selling account, includes specific insurance requirements that apply once you exceed the revenue threshold. Here are the exact requirements as of 2026.
Coverage type: Commercial general liability insurance (CGL), or the equivalent in your country. Amazon specifically requires this type of policy, not a personal umbrella, homeowners rider, or professional liability policy. A standard CGL policy or a business owners policy that includes CGL coverage satisfies this requirement.
Coverage limit: At least $1 million per occurrence and $1 million in the aggregate. Most standard CGL policies provide $1 million per occurrence and $2 million aggregate, which meets and exceeds Amazon's requirement. You do not need to purchase higher limits solely for Amazon compliance, though higher limits are advisable as your business grows.
Additional insured: The policy must name "Amazon.com, Inc. and its affiliates and assignees" as additional insureds. This means if a customer sues both you and Amazon over a product you sold, your insurance covers Amazon's legal costs and any judgment against them related to your product. Most insurance providers add additional insured endorsements at no extra charge or for a nominal fee of $25 to $50.
Products-completed operations coverage: Your policy must include products-completed operations coverage, which covers product liability claims for products you have sold and delivered. This is the coverage that responds when a customer claims your product caused them harm. Most CGL policies include this coverage automatically, but verify it with your insurer.
Deductible: Amazon requires that any deductible on the policy not exceed $10,000. Most small business CGL policies have deductibles of $0 to $1,000, well within Amazon's limit.
Certificate requirement: You must provide Amazon with a certificate of insurance (COI) showing the coverage details and additional insured status. Amazon may request this certificate at any time, and the most common trigger is when your gross proceeds first exceed $10,000 in a single month.
When Amazon Requests Your Certificate
Amazon monitors seller revenue and automatically flags accounts that exceed the $10,000 monthly threshold. When flagged, you receive a notification in Seller Central requesting proof of insurance. The notification appears in your case log and may also be sent via email to your registered email address.
Once notified, you typically have 30 days to upload a valid certificate of insurance through Seller Central. During this 30-day window, your selling privileges continue normally. If you fail to provide a valid certificate within the deadline, Amazon can restrict your account, which may include suppressing your listings, holding your disbursements, or in extreme cases, suspending your account entirely.
Amazon's Insurance Accelerator program, launched in partnership with several insurance providers, allows sellers to purchase a compliant policy directly through Seller Central. The participating providers understand Amazon's specific requirements and issue policies that are already formatted correctly for Amazon compliance. Using an Insurance Accelerator provider can streamline the process, but you are not required to use one. Any insurance policy that meets the stated requirements is acceptable.
Even if you have not yet received a request, proactively getting coverage before you hit the $10,000 threshold is advisable. Processing an insurance application, getting the policy bound, and having the COI issued can take a few days to a few weeks depending on the provider. Having coverage in place before Amazon asks means you can respond to the request immediately with no disruption to your selling operations.
What Amazon's Insurance Does Not Cover
Amazon's requirement is specifically for commercial general liability coverage. Meeting this minimum requirement does not mean you have comprehensive business protection. Several important gaps exist.
Amazon's A-to-Z Guarantee claims are handled through Amazon's internal dispute process, not through your insurance policy. When a customer files an A-to-Z claim for a refund, Amazon resolves it through their own system. Your insurance does not get involved in A-to-Z claims because they are contractual disputes between you and Amazon, not third-party liability claims.
Product recall costs are not covered by a standard CGL policy. If you need to recall a product sold through Amazon, the costs of notifying customers, receiving returned products, and disposing of or repairing defective items come out of your pocket unless you have a separate recall coverage endorsement.
Cyber liability from customer data breaches is not covered by CGL. As an Amazon seller, you have access to customer names, addresses, and order information. If that data is compromised through your systems, cyber insurance covers the resulting costs, not your general liability policy.
FBA inventory loss that occurs while your products are in Amazon's fulfillment centers is governed by Amazon's FBA terms and their reimbursement process, not by your insurance. Amazon provides limited reimbursement for inventory they lose or damage, but the reimbursement amounts are often below your actual product cost. Cargo and inventory insurance can cover inventory in third-party facilities, including FBA warehouses, but you need to verify that your specific policy covers goods at Amazon facilities.
Account suspension losses are not insurable events. If Amazon suspends your account and you lose revenue during the suspension period, no insurance policy covers that loss because account suspension is a business dispute, not a covered peril.
Insurance Costs for Amazon Sellers
The cost of a policy that meets Amazon's requirements depends on your product categories, annual revenue, and claims history.
Low-risk products (books, clothing, accessories, home decor): $400 to $800 per year. These categories have low product liability claim frequency and typically qualify for the best rates.
Moderate-risk products (kitchen items, pet supplies, sporting goods, tools): $800 to $1,500 per year. Products that are used in ways that could cause injury carry higher premiums.
High-risk products (supplements, cosmetics, children's products, electronics): $1,500 to $4,000 per year. These categories have the highest claim frequency and potential claim severity, resulting in higher premiums.
Restricted categories (medical devices, automotive parts, safety equipment): $3,000 to $10,000 or more per year. Some categories are difficult to insure through standard providers, and you may need to work with a specialty or surplus lines insurer.
Many Amazon sellers sell across multiple categories. Your insurer will base your rate on the highest-risk category you sell in, because that category drives the most likely claims. If 90% of your revenue comes from low-risk clothing but 10% comes from nutritional supplements, your rate will be influenced by the supplement exposure.
Recommended Insurance Providers for Amazon Sellers
Amazon Insurance Accelerator providers include companies that have partnered directly with Amazon to offer policies tailored to marketplace sellers. These providers include Bold Penguin, Next Insurance, Hiscox, and several others depending on your state and product category. The advantage of using an Accelerator provider is that they generate certificates in the exact format Amazon requires, and some can submit the COI to Amazon directly on your behalf.
Next Insurance is popular among Amazon sellers because of their fast online application, same-day coverage, and competitive rates for ecommerce businesses. They offer CGL with products-completed operations coverage, and adding Amazon as an additional insured is built into their quoting process for sellers who identify as Amazon marketplace sellers.
Hiscox is a strong choice for Amazon sellers who also provide professional services or want to bundle general liability with professional liability. Their online application process is straightforward, and they specialize in small business coverage with customizable policy options.
The Hartford offers BOPs that include CGL coverage meeting Amazon's requirements. For sellers who also need commercial property and business interruption coverage, The Hartford's BOP is a cost-effective way to get Amazon-compliant coverage bundled with broader protection.
Thimble offers flexible coverage options including monthly policies, which can be useful for seasonal Amazon sellers who do not need year-round coverage. Their per-month pricing can be more expensive on an annualized basis than an annual policy, but the flexibility has value for sellers with inconsistent sales patterns.
Step-by-Step Compliance Process
1. Check your revenue. Review your Amazon payments report in Seller Central. Look at your gross proceeds for the most recent month. If you are at or approaching $10,000, start the insurance process now rather than waiting for Amazon's notification.
2. Gather your business information. You will need your business legal name as registered with Amazon, your EIN, your business address, a description of the products you sell, your estimated annual Amazon revenue, and any claims history from previous insurance policies.
3. Get quotes. Request quotes from at least three providers, including at least one Amazon Insurance Accelerator provider. Specify that you need CGL with at least $1M/$1M limits, products-completed operations coverage, and Amazon named as additional insured. Compare premiums, deductibles, and any differences in coverage scope.
4. Purchase the policy. Select a provider and bind coverage. When setting up the policy, make sure the named insured matches your Amazon seller name exactly. Discrepancies between your policy name and your Amazon account name can cause Amazon to reject your certificate.
5. Get your certificate of insurance. Request a COI from your insurer that shows the policy details, limits, and additional insured status for Amazon. Most providers can issue a COI within minutes of binding the policy.
6. Upload to Seller Central. Upload the COI through the insurance section of your Seller Central account. Amazon reviews the certificate, usually within a few business days, and updates your account status once compliance is confirmed.
7. Keep the policy current. Workers comp and general liability policies renew annually. Set a reminder to renew your policy before it expires and upload the updated COI to Seller Central. A lapsed policy can trigger the same account restrictions as never having coverage in the first place.