Amazon
Amazon's New Liability Insurance Rule: Who Needs $1 Million in Coverage Now
Amazon liability insurance requirements change Nov 2: safety-category sellers need $1M coverage at any sales level. See if you're affected and what to do.
TL;DR
- What changed: from November 2, 2026, sellers with products in categories with enhanced safety listing requirements need a commercial liability policy of at least USD 1 million per occurrence and in aggregate, no matter how much they sell. Before, insurance only kicked in after USD 10,000 in gross proceeds in a month.
- Which categories: children's products, consumable and ingestible products (supplements, OTC medicine, products for topical application), lithium battery products, fire safety, home medical devices, small kitchen appliances, outdoor power equipment, personal safety gear, mattresses, tires and water safety products. Amazon says the list isn't complete.
- It covers new and existing listings. Sellers in those categories who skipped insurance because of the sales threshold have to buy it now.
- Sellers based in Mainland China must buy new policies through the Amazon Insurance Accelerator. Other new policies from them are rejected from November 2; a valid policy submitted before then runs until it expires.
- If you don't comply: Amazon's notice says listings in the affected categories are deactivated until you upload a compliant certificate.
- What to do now: check your catalog against Amazon's category list, get a policy that meets every criterion below, and upload the Certificate of Insurance in Settings > Account Info > Business Insurance.
The Real Question: Do I Need Insurance to Sell on Amazon?
For years the answer for most small sellers was "not yet." Amazon's Business Solutions Agreement only required commercial liability insurance once you passed USD 10,000 in gross proceeds in a month. Plenty of sellers under that line never bought a policy.
That changes on November 2, 2026. If any of your products sit in a category with enhanced safety listing requirements, you need a USD 1 million policy whether you sell $500 or $50,000 a month. Some sellers have already had Amazon's email ("Submit proof of commercial liability insurance by November 2, 2026"); others haven't, and Amazon says not to wait for one. Here's who the rule hits, how to check your own catalog, and how to get a certificate Amazon accepts the first time.
What Amazon Announced
Amazon posted the change on its seller forum on September 3, 2026 and updated its Commercial Liability Insurance Requirements page. The existing rule stays: every seller needs commercial liability insurance within 30 days after passing USD 10,000 in gross proceeds in a month on Amazon.com, or when Amazon asks for it, with at least USD 1 million per occurrence and in aggregate. Amazon added two requirements:
- Safety categories need insurance at any sales level. Sellers with products listed in categories with enhanced safety listing requirements must maintain a policy that covers those products, with at least USD 1 million per occurrence and in aggregate, "regardless of whether they meet the USD 10,000 gross proceeds in a month threshold." Amazon says this applies to both new and existing listings.
- Mainland China sellers must use the Amazon Insurance Accelerator (AIA). From November 2, Amazon rejects newly submitted policies from these sellers that weren't obtained through AIA. A valid third-party policy submitted before November 2 can be used until it expires; after that, the renewal has to come through AIA.
The Categories on Amazon's List
Amazon's "Product categories with enhanced safety listing requirements" page lists these groups (with examples from the page):
| Category | Examples Amazon Lists |
|---|---|
| Children's products | Car seats and booster seats, children's toys, infant sleep products, nursing pillows, play yards, portable bed rails |
| Consumable and ingestible products | Dietary supplements, ingestible OTC medication, ophthalmic drug products, products for topical application |
| Fire-related products | Fire extinguishers, smoke and carbon monoxide alarms |
| General household devices | Immersion water heaters, small kitchen appliances |
| Home medical devices | Mobility and transfer equipment, home respiratory supplies, walkers and rollators |
| Lithium battery products | Lithium batteries, e-mobility devices and accessories, battery-powered appliances and electronics, portable power supplies |
| Outdoor power and heating equipment | Electric cutting tools, gas outdoor heaters, portable generators, pressure washers |
| Personal safety equipment | Climbing and fall-protection harnesses, climbing ropes, carabiners, safety helmets |
| Sleep products | Mattresses, adult portable bed rails |
| Transport-related products | Auto and motorcycle tires |
| Water and marine safety products | Flotation products, pool safety and access control products |
Two warnings from Amazon's own page: every category says "including, but not limited to," and the list "changes as Amazon adds new categories, and it does not cover all products with these requirements." Amazon's forum post also names cosmetics; on the category page they fall under products for topical application.
How to Check If the Rule Hits You (Before Amazon Does)
Amazon says it emails sellers when it finds listings in these categories, but its FAQ adds that you're responsible for being covered at all times and should review your catalog yourself instead of waiting for a notification. A 15-minute check:
- Look for Amazon's email and Account Health notices. The email names your impacted products and categories. Also open Account Health and check for product policy or compliance notices.
- Run your catalog against the category list. Export your active listings and flag anything that is for kids, is eaten, swallowed or put on the skin, holds a lithium battery, or appears in the table above. Battery-powered gadgets are the easiest to miss: a phone accessory, a toy or a kitchen gadget with a built-in lithium cell can count.
- Check what you already have. If you have a policy on file, make sure it covers every product you list on Amazon.com, including the flagged ones, and that it's still in date.
- Think you've been flagged by mistake? Amazon's notice says to contact Selling Partner Support with evidence such as product images and the category name.
- Decide per category, not per account. If a flagged category is a tiny share of your sales, compare the yearly premium with that category's profit. Our Amazon unit economics calculator helps: add the premium as a fixed cost and see if the products still earn their place.
Get a Certificate Amazon Accepts the First Time
This is where most sellers lose time. Buying a policy is quick; getting the Certificate of Insurance (COI) verified is where uploads bounce. Amazon's requirements page lists every criterion. Check your COI against all of them before you upload:
| Requirement | What Amazon Asks For |
|---|---|
| Policy type | Commercial general, umbrella or excess liability |
| Limits | At least USD 1 million per occurrence and in aggregate, covering products, products/completed operations and bodily injury |
| Basis | Written on an "occurrence basis" (claims-made only in the cases below) |
| Deductible | No more than USD 10,000, and listed on the COI |
| Products covered | All products you list in the Amazon.com store |
| Additional insured | "Amazon.com Services LLC and its affiliates and assignees" (Amazon gives the address P.O. Box 81226, Seattle, WA 98108-1226) |
| Sunset clause | None allowed |
| Insured name | Matches the legal entity name in your Account Info (single-member LLCs may use their trade name) |
| Insurer | Global claim handling, rated A- or better by S&P or AM Best (or a local equivalent) |
| Signature and notice | Complete, signed by the insurer, with at least 30 days' notice to Amazon of cancellation, changes or non-renewal |
Claims-made policies. Amazon allows them only when an occurrence policy isn't available for what you sell: pharmaceuticals, nutraceuticals and dietary supplements, ingestible products, chemicals, critical automotive parts, children's consumable products that can't be insured on an occurrence form, other products Amazon accepts, or sellers located in France. The claims-made policy needs at least USD 1 million, continuous renewal while you sell those products, and cover for at least 3 years after you stop (or 3 years of tail coverage). You still need a separate occurrence policy for the rest of your products.
Where to buy. Sellers outside Mainland China can use any insurer that meets the criteria, or compare quotes in the Amazon Insurance Accelerator. If no AIA provider quotes you, Amazon's FAQ points you to Marsh, its broker of record: 866-260-3726 or amazonsellers@marsh.com (China-based sellers: 400 005 1222 or amazonsellers.cn@marsh.com).
Where to upload. In Seller Central go to Settings > Account Info > Business Insurance and upload the COI (.pdf, .doc or .docx) with your insurer and coverage dates. Amazon may also ask for the full policy or the invoice. Renewals go through the same page: upload the new COI every time the policy renews.
What Happens If You Don't Comply
Amazon's email to affected sellers says listings in the named categories will be deactivated until you provide compliant documentation. Amazon's category page says it reviews your insurance and turns your selling privileges back on once it meets the requirements. Amazon does say it considers exceptions case by case for sellers who can't get a policy that meets the requirements, so if you're stuck, ask Selling Partner Support before your listings go dark.
Two more things worth knowing:
- The same category page also requires third-party testing. Products in these categories need validation through an Amazon-authorized testing, inspection and certification (TIC) provider, and can be picked for random testing. Insurance is only part of what these categories demand.
- Stopping a category doesn't always end the policy. If you leave Amazon with a claims-made policy, or an occurrence policy with a sunset clause, Amazon's FAQ says you need tail coverage for at least 3 years. A plain occurrence policy needs no tail.
If your listings are already flagged or you want someone to run the check across a big catalog, that's part of what our Amazon account management team handles, along with keeping an eye on your Account Health Rating. For the other dates landing this season, see our Amazon Q4 2026 deadlines.
FAQ
Do I need insurance to sell on Amazon?
From November 2, 2026, yes if any of your products are in a category with enhanced safety listing requirements, whatever your sales. Otherwise you need it within 30 days of passing USD 10,000 in gross proceeds in a month on Amazon.com, or whenever Amazon asks.
What are Amazon's liability insurance requirements?
A commercial general, umbrella or excess liability policy of at least USD 1 million per occurrence and in aggregate, on an occurrence basis, with a deductible of USD 10,000 or less, no sunset clause, Amazon.com Services LLC and its affiliates and assignees as additional insureds, and an insurer rated A- or better.
Which categories need insurance under the new rule?
Categories with enhanced safety listing requirements: children's products, consumable and ingestible products, fire-related products, some household devices, home medical devices, lithium battery products, outdoor power equipment, personal safety equipment, sleep products, tires and water safety products. Amazon says the list isn't complete.
I sell less than $10,000 a month. Does this apply to me?
Yes, if you list products in those categories. The new rule applies regardless of the USD 10,000 threshold, to new and existing listings.
Do I have to use the Amazon Insurance Accelerator?
Only if you're based in Mainland China. Everyone else can choose any insurer that meets Amazon's criteria.
Where do I upload my certificate of insurance?
In Seller Central under Settings, Account Info, Business Insurance. Upload a new certificate every time your policy renews.
What happens if I don't upload proof of insurance?
Amazon says listings in the affected categories are deactivated until you provide compliant documentation.
How much does Amazon seller liability insurance cost?
Amazon doesn't publish prices. Premiums depend on your products, category risk and sales. Compare a few quotes in the Amazon Insurance Accelerator and from an independent broker.
The Bottom Line
The USD 10,000 threshold no longer protects small sellers in safety categories. If you sell kids' products, supplements, lithium battery items or anything else on Amazon's enhanced safety list, you need a USD 1 million commercial liability policy on file from November 2, 2026, or those listings go inactive.
Check your catalog against the list today, get a policy that ticks every box on Amazon's criteria, and upload the certificate under Business Insurance. Getting the COI right the first time is what keeps your listings live.
Sources
- Amazon Seller Forums, New Commercial Liability Insurance Requirements effective November 2, 2026 (News_Amazon, September 3, 2026)
- Amazon Seller Central Help, Commercial Liability Insurance Requirements (login required)
- Amazon Seller Central Help, Product categories with enhanced safety listing requirements (login required)
- Amazon Seller Central, Business Insurance page, Frequently Asked Questions (login required)
- Amazon Seller Forums, Commercial liability insurance (a seller's copy of Amazon's notice email and Amazon's moderator reply)
Related Tools
Free calculators to put these insights into action.
Amazon Unit Economics
Full per-unit cost breakdown: COGS, referral fee, FBA, returns, and ad spend. See operating profit vs net margin.
FBA Fee Calculator
Estimate your Amazon FBA fees, referral fees, and net profit per unit. Supports all major product categories.
PPC Bid Calculator
Calculate your maximum CPC bid based on target ACoS, conversion rate, and selling price. Optimize your Amazon PPC campaigns.