Insurance for Amazon Sellers and E-Commerce Brands

Amazon sellers need commercial liability insurance, including product liability, once their monthly sales exceed $10,000, and Amazon is extending that requirement to certain product categories regardless of sales starting November 2, 2026. Beyond Amazon's minimum, e-commerce brands should insure inventory, imports, and cyber risk, advises Bozzuto Group, a San Diego–based specialty commercial insurance brokerage.

What insurance does Amazon require from sellers?

Under Amazon's seller requirements, a third-party seller must obtain commercial liability insurance within 30 days after its gross proceeds from Amazon.com sales exceed $10,000 in any month. Published summaries of the requirement describe these common terms:

• At least $1,000,000 per occurrence and in the aggregate, including product liability and bodily injury coverage
• Amazon.com Services LLC and its affiliates and assignees named as additional insureds
• A named insured that matches the legal entity on your seller account
• Proof of coverage, such as a certificate of insurance, uploaded through Seller Central

Amazon updates its requirements periodically, and the details in Seller Central control. Confirm current terms in your account before you buy or renew a policy.

How do you submit proof of insurance to Amazon?

1. Ask your broker for a quote that meets Amazon's listed limits and confirm the policy covers every product category you sell.
2. Request the additional insured endorsement naming Amazon exactly as Seller Central specifies.
3. Obtain a certificate of insurance that shows the policy number, limits, dates, and additional insured status.
4. Upload the certificate in Seller Central and note the policy expiration date.
5. Upload the renewal certificate before the old policy expires, so your account does not fall out of compliance.

A missing endorsement or a business name that does not match your seller account can cause a submission to be rejected, so review the documents before uploading them.

What is changing in November 2026?

Starting November 2, 2026, Amazon is adding a product-category trigger to the sales threshold. Sellers with products in categories subject to enhanced safety listing requirements must carry qualifying liability insurance regardless of monthly sales. Published examples include children's products, cosmetic and ingestible products, and lithium battery products.

For sellers in these categories, staying below $10,000 a month no longer removes the obligation. Amazon has also announced that sellers based in Mainland China will need to obtain coverage through its Insurance Accelerator program. Check Account Health and your listing requirements in Seller Central to confirm whether your products are affected.

Is Amazon's minimum insurance enough?

Amazon's requirement is designed to protect Amazon. It does not address every risk to your business. Consider these gaps:

Why do importers face higher product liability risk?

Many Amazon brands source products from overseas manufacturers. If an imported product injures someone in the United States, the injured person may have difficulty suing a foreign factory, and the U.S. importer or brand owner can become the primary target. In many states, a company that puts its brand on a product or imports it can be treated like the manufacturer.

That makes your own product liability insurance the main line of defense. When possible, ask your supplier for proof of liability coverage that applies to U.S. claims and names your company, but do not rely on it alone.

How should e-commerce brands protect inventory?

Inventory moves through several hands before it reaches a customer: a factory, an ocean or air carrier, a customs broker, a third-party logistics (3PL) provider, and often an Amazon fulfillment center. Each handoff creates a chance for loss.

• Cargo insurance covers goods in transit, which matters because carriers' liability for lost or damaged freight is often limited.
• Stock throughput insurance covers inventory from the factory through transit and storage under one policy, which can simplify coverage for brands with stock in many locations.
• Commercial property covers inventory at your own warehouse and should include property at other locations if you use a 3PL.

Read your 3PL agreement carefully. Many limit their liability for lost or damaged goods, which may leave you responsible for the rest.

What other coverage do online sellers need?

Depending on your business, also consider:

• Cyber liability for compromised seller accounts, payment fraud, and data breaches on your own storefront
• Product recall for ingestibles, children's products, and electronics, where recalls can be expensive
• General liability with advertising injury for claims that your listings infringe a competitor's trade dress or copyrighted images
• Workers compensation if you have employees packing or shipping orders

How Bozzuto Group Helps

Bozzuto Group works with retail and e-commerce brands, including sellers of supplements, cosmetics, and other categories that standard carriers may hesitate to write. We check that your policy meets Amazon's current requirements, confirm product liability applies to every channel and country where you sell, and add cargo or stock throughput coverage that follows your inventory from the factory to the customer. We also help you prepare certificates for Amazon and other marketplaces.

To review your e-commerce coverage, call 858-805-1865 or request a quote online.