{"id":1812,"date":"2023-05-31T08:32:52","date_gmt":"2023-05-31T08:32:52","guid":{"rendered":"https:\/\/zonhack.com\/?p=1812"},"modified":"2026-08-27T13:52:30","modified_gmt":"2026-08-27T13:52:30","slug":"amazon-seller-insurance","status":"publish","type":"post","link":"https:\/\/zonhack.com\/zh\/amazon-seller-insurance\/","title":{"rendered":"Amazon Seller Insurance: When You Need It and What It Must Cover"},"content":{"rendered":"

Amazon requires commercial liability insurance once you exceed $10,000 in gross sales in a single month<\/strong> on Amazon.com, and you have 30 days<\/strong> from crossing that line to have a compliant policy in place. The policy must carry at least $1 million<\/strong> per occurrence and in aggregate, and it must name Amazon as an additional insured.<\/p>\n

That figure corrects a misunderstanding running in both directions. Coverage is not<\/strong> compulsory for every merchant from day one. Yet it becomes<\/strong> compulsory well before most people anticipate, since $10,000 across a single month is a modest milestone for any working business.<\/p>\n

Below are the actual requirements under Amazon’s Business Solutions Agreement, what the coverage protects you from, and roughly what it costs. One note before we start: this is general information for sellers, not insurance or legal advice.<\/strong> Coverage needs vary by product category and jurisdiction, and a broker who knows your category is worth the conversation.<\/p>\n

Why the coverage matters beyond compliance<\/h2>\n

Product liability is the exposure merchants underestimate most, in my experience. Should something you sold injure a person or damage property, you can be named in the claim regardless of who manufactured it. Litigation over consumer goods, whether batteries that ignite, appliances that fail, or cosmetics that provoke reactions, routinely names distributors and retailers. Not merely factories.<\/p>\n

Amazon absorbs part of this. Under its policy, Amazon resolves and pays valid property damage and personal injury claims under $1,000<\/strong> as a customer concession, without seeking reimbursement from sellers who follow its policies and hold valid insurance. Amazon has stated that claims below that figure account for the large majority of cases in its store, and these concessions do not affect your Order Defect Rate.<\/p>\n

Read that carefully, because a condition hides inside it: the shelter applies to merchants holding valid coverage.<\/strong> Going without does not merely risk litigation. It can forfeit the buffer Amazon extends. And anything above $1,000 lands squarely on you.<\/p>\n

There is a second, quieter reason to comply: failing to provide proof of insurance when Amazon asks is a policy violation, and unresolved policy violations threaten the account itself, as our guide to suspended seller accounts<\/a> explains.<\/p>\n

What Amazon requires, specifically<\/h2>\n

Amazon sets out its requirements in the Pro Merchant insurance section of its program policies, under section 9 of the Business Solutions Agreement. In summary:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Requirement<\/th>\nWhat Amazon asks for<\/th>\n<\/tr>\n<\/thead>\n
Trigger<\/td>\nExceeding $10,000 gross sales in one month, or on request<\/td>\n<\/tr>\n
Deadline<\/td>\nWithin 30 days of crossing the threshold<\/td>\n<\/tr>\n
Policy type<\/td>\nCommercial general, umbrella, or excess liability, occurrence-based<\/td>\n<\/tr>\n
Coverage limit<\/td>\nAt least $1 million per occurrence and in aggregate<\/td>\n<\/tr>\n
Deductible<\/td>\nNo greater than $10,000, and stated on the certificate<\/td>\n<\/tr>\n
Scope<\/td>\nMust cover all products you list on Amazon<\/td>\n<\/tr>\n
Additional insured<\/td>\nAmazon.com Services LLC and its affiliates and assignees<\/td>\n<\/tr>\n
Insured name<\/td>\nMust match the legal entity name in your Account Info (single-member LLCs may use their trade name)<\/td>\n<\/tr>\n
Insurer rating<\/td>\nS&P A- or AM Best A- or better, or a local equivalent<\/td>\n<\/tr>\n
Notice<\/td>\nInsurer must give Amazon at least 30 days’ notice of cancellation or change<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Two rows in that table cause most rejected certificates we handle. Both are avoidable.<\/p>\n

The additional-insured wording.<\/strong> Amazon expects specific language naming “Amazon.com Services LLC and its affiliates and assignees” as additional insureds, at the address Amazon publishes for this purpose. Your insurer must add that endorsement precisely. A certificate lacking it fails even where the underlying cover is perfectly adequate.<\/p>\n

The name match.<\/strong> Your insured name must mirror the legal entity Amazon holds on record. Not your storefront label. Not an abbreviation. This is the same alignment discipline that decides identity verification and account name changes<\/a>, and it fails for the same trivial reasons.<\/p>\n

Certain product categories carry different or additional requirements, so check Amazon’s FAQ for your category rather than assuming the general rules apply.<\/p>\n

Which type of policy<\/h2>\n

Commercial general liability (CGL).<\/strong> The standard choice, and what most merchants buy. It answers third-party bodily injury and property damage claims, typically bundling product liability, personal injury, and advertising injury.<\/p>\n

Umbrella or excess liability.<\/strong> Extends your ceiling once a claim exceeds the underlying cap. Higher-revenue merchants and those handling riskier goods layer this atop CGL, never instead of it.<\/p>\n

For most merchants crossing the threshold, a CGL contract meeting the $1 million minimum is the answer. Whether you want more depends on your category, volume, and appetite for risk. I’d put that question to a broker rather than to any article, including this one.<\/p>\n

What it costs<\/h2>\n

Typical annual premiums for Amazon sellers commonly fall in the $500 to $1,000<\/strong> range for a $1 million CGL policy, though your quote depends heavily on:<\/p>\n