Do I Need Insurance to Sell on Amazon?

You do not automatically need commercial liability insurance on the first day you open an Amazon.com seller account.

However, Amazon currently requires you to obtain and maintain qualifying insurance within 30 days after your gross proceeds exceed $10,000 in one month, or whenever Amazon specifically asks you to provide it.

Selling below that threshold does not remove the underlying risk that a customer could allege bodily injury or property damage caused by a product.

That is why many sellers consider coverage before Amazon makes it mandatory, especially when they sell private-label goods, products used by children, electronics, supplements, cosmetics, kitchen items, tools, or other higher-risk products.

I recently purchased insurance for my own business through Lawrence Lipman.

I recommend contacting Lawrence for help reviewing insurance for your Amazon store and asking him for a quote.

Mention my name, Vova Even, so he knows how you found him and can help you look for a suitable option.

Do You Need Insurance To Sell On Amazon?

The answer depends on your sales, Amazon's request, the marketplace agreement, and the risk created by your products.

For Amazon.com in the United States, the current commercial liability insurance trigger is more than $10,000 in gross proceeds during any one month.

Once that happens, Amazon states that you must obtain and maintain the required coverage within 30 days.

Amazon can also request insurance before you reach the threshold.

This means a seller with lower sales should not assume that Amazon can never ask for proof of coverage.

The rule is based on gross proceeds from Amazon transactions rather than profit after advertising, fees, refunds, inventory, or other expenses.

A month with strong seasonal sales can therefore trigger the requirement even when your net profit is small.

Marketplace rules can differ outside Amazon.com, so check the agreement and insurance page for every store where you sell.

What Type Of Insurance Does Amazon Require?

Amazon requires commercial liability insurance that covers the products you sell through the marketplace.

Sellers often hear the phrases commercial general liability insurance and product liability insurance used together.

Commercial general liability is the broader policy framework, while product liability coverage addresses claims connected with products that allegedly cause bodily injury or property damage.

Your policy can use commercial general liability, umbrella liability, or excess liability coverage when the combined structure meets Amazon's requirements.

Do not assume that a basic home-business, shipping, cargo, inventory, or property policy satisfies the requirement.

Those policies protect different risks and may not cover product-related third-party claims.

My Amazon product liability insurance explanation explains the core purpose of this coverage in more detail.

What Must An Amazon Seller Insurance Policy Include?

Amazon reviews both the insurance coverage and the information shown on the certificate.

A policy can be genuine and still be rejected when the certificate does not match the seller account or Amazon's formatting requirements.

• The policy should provide at least $1 million per occurrence and in the aggregate for liabilities caused by or occurring in connection with your business operations, including products, products-completed operations, and bodily injury.

• The policy should cover all sales from products you have listed on the Amazon website.

• The policy should be written on an occurrence basis rather than relying only on claims-made coverage.

• The deductible for the policy should not be greater than $10,000, and the deductible should appear on the certificate of insurance.

• The insured name should match the legal entity name shown in your Amazon account.

• Amazon.com Services LLC and its affiliates and assignees should be named as additional insureds.

• The insurer should have global claim-handling capability and the financial rating required by Amazon or an accepted local equivalent.

• The certificate should be complete, signed by an authorized representative, and valid for the period shown.

Amazon's wording and insurance limits can be updated through the Business Solutions Agreement or program policies.

Always compare your certificate with the current Seller Central insurance page before uploading it.

Why Does Amazon Need To Be An Additional Insured?

Adding Amazon as an additional insured gives Amazon protection under the seller's liability policy for covered claims connected with that seller's products or operations.

A customer may direct a complaint or lawsuit at the seller, Amazon, or several parties involved in manufacturing, importing, distributing, and selling the product.

Amazon's insurance requirement shifts eligible product-related risk toward the business that controls or sells the product.

It does not mean every claim will be covered.

Coverage still depends on the policy wording, exclusions, facts, limits, deductible, reporting, and the insurer's claim decision.

What Does Amazon Seller Liability Insurance Cover?

A qualifying liability policy is designed to respond to covered third-party claims rather than ordinary business losses.

The exact coverage is controlled by the insurance contract rather than a general online description.

Ask the broker to explain important exclusions and how the policy applies to every product category you sell.

What Does The Policy Usually Not Cover?

Commercial liability insurance is not an all-purpose protection plan for every Amazon business problem.

• It does not normally pay for poor sales, lost rankings, advertising losses, or unsold inventory.

• It does not automatically cover product recalls unless recall coverage is specifically included or added.

• It does not replace cargo, shipping, warehouse, property, cyber, workers' compensation, or professional liability insurance.

• It may exclude particular products, ingredients, countries, claims, or business activities.

• It may not cover a product that was never disclosed to the insurer.

• It does not guarantee that Amazon will accept the certificate.

• It does not prevent a customer, regulator, or Amazon from making a complaint or taking action.

Insurance transfers defined financial risks to an insurer under agreed terms.

It does not remove the seller's responsibility to source, test, label, document, and sell products safely.

Should You Buy Insurance Before Reaching $10,000?

Buying coverage before Amazon's threshold can make sense when the possible loss is larger than the premium you are trying to avoid.

A low-revenue business can still receive a serious claim.

The number of sales affects exposure, but one defective or dangerous product can cause harm before the store becomes large.

Early coverage is more important when the product has a meaningful chance of causing injury, property damage, ingestion issues, allergic reactions, burns, electric shock, choking, cuts, or other harm.

The decision should consider both Amazon compliance and the seller's independent business risk.

A licensed broker can help you compare the premium with the products, sales, countries, entity, and claim exposure involved.

Do FBA And FBM Sellers Both Need Insurance?

Amazon's commercial liability requirement is not limited to either Fulfillment by Amazon or Fulfilled by Merchant sellers.

The underlying issue is the product and seller business, not only who ships the order.

FBA can handle storage, packing, shipping, customer service, and returns for eligible inventory.

That does not transfer every product liability risk from the seller to Amazon.

FBM sellers can have additional operational exposures connected with their own warehouse, packing, staff, delivery arrangements, or premises.

Tell the broker whether you use FBA, FBM, third-party logistics, prep centers, warehouses, or direct shipping because the complete business operation can affect underwriting.

Do Private-Label Sellers Need Different Coverage?

Private-label sellers often have greater responsibility for the product than a simple reseller of a well-established brand.

Your business name may appear on the product, packaging, listing, instructions, warranty, or import documents.

You may also control the design, supplier, materials, claims, testing, labeling, and customer warnings.

Those factors can increase the importance of product liability coverage and accurate product disclosure.

Give the insurer complete information about each category, intended use, customer group, supplier country, annual sales, and previous claims.

Do not describe a risky product as a harmless general item to obtain a lower quote.

An inaccurate application can create serious problems when you later need coverage.

Do Wholesale And Arbitrage Sellers Need Insurance?

Wholesale, online arbitrage, and retail arbitrage sellers can still need insurance when they cross Amazon's threshold or receive a request.

Reselling an established brand does not automatically make the seller immune from a claim.

The customer, Amazon, brand owner, distributor, and other parties can disagree about responsibility after an incident.

Your ability to seek protection from a manufacturer or supplier depends on contracts, invoices, indemnity terms, insurance, authenticity, and the facts of the claim.

Keep proper invoices and supplier records and ask whether the policy covers the resale model you use.

My Amazon account suspension prevention guide also explains why reliable suppliers and accurate product records matter.

Which Products Usually Cost More To Insure?

Insurance pricing is based on risk rather than one fixed Amazon seller rate.

Products with a higher chance or severity of injury normally require more underwriting and may cost more to insure.

• Supplements, food, beverages, cosmetics, skincare, and ingestible products can create ingredient, contamination, labeling, and adverse-reaction risks.

• Children's products, toys, baby items, and products with small parts can create choking, developmental, testing, and age-related risks.

• Electronics, batteries, chargers, heaters, and powered devices can create fire, burn, shock, or property-damage risks.

• Tools, knives, sporting goods, fitness equipment, and outdoor products can create cutting, impact, misuse, or mechanical risks.

• Medical, wellness, protective, or safety-related products can create higher expectations and claim severity.

• Products imported under your brand can place more responsibility on your company for manufacturing, labeling, testing, and warnings.

A lower-risk product can still generate a claim, and a higher-risk product is not automatically uninsurable.

The insurer may request testing, certificates, supplier details, warning labels, claims history, or other evidence before quoting.

What Affects The Cost Of Amazon Seller Insurance?

There is no reliable universal price because two Amazon stores with similar revenue can have very different risks.

Prepare accurate information before requesting quotes so the broker can compare suitable policies rather than rough estimates.

Do not select a policy only because it is the cheapest.

A low premium provides little value when the policy excludes your main product or fails Amazon's certificate review.

Information To Prepare Before Asking For A Quote

A broker can usually work faster when you provide complete business and product information from the beginning.

• Your legal business name and entity type.

• The address and country connected with the business.

• Your Amazon marketplaces and fulfillment methods.

• Current and projected annual sales.

• A list of product categories and representative ASINs.

• Whether products are private label, manufactured, imported, wholesale, or arbitrage.

• Supplier and manufacturing countries.

• Product testing, certifications, warnings, labels, and quality-control information.

• Any previous insurance, claims, incidents, complaints, or recalls.

• The coverage limits, additional-insured wording, and deadline shown in Amazon's request.

Provide the same legal entity name that appears in Seller Central.

Small spelling, punctuation, or entity differences can contribute to a certificate rejection.

How To Contact Lawrence Lipman

I recently purchased insurance from Lawrence Lipman and recommend talking to him about Amazon seller coverage.

Email Lawrence at lipmaninsurance@gmail.com.

Mention my name, Vova Even, when you contact him.

Tell him what you sell, where your business is registered, which Amazon marketplaces you use, your approximate sales, and whether Amazon has already sent you an insurance request.

Lawrence can then tell you what other details are needed to look for an appropriate quote.

The final price, insurer, coverage, exclusions, eligibility, and Amazon acceptance depend on your individual business and policy documents.

Can Non-US Amazon Sellers Get Insurance?

Non-US founders can often obtain insurance for a US Amazon business, but availability depends on the insurer, business entity, owner location, products, sales territories, and marketplace requirements.

A US LLC does not automatically guarantee that every insurer will offer a policy.

A local company outside the United States does not automatically make insurance impossible either.

The broker needs to know where the company is registered, where products are manufactured, where inventory is stored, where customers are located, and which Amazon entity requires coverage.

International sellers should also confirm whether the insurer can handle claims in the required territories and meets Amazon's rating rules or accepted local equivalent.

See my insurance guide for non-US Amazon sellers for more international seller context.

How To Submit Proof Of Insurance To Amazon

Amazon normally asks for a certificate of insurance rather than the seller simply typing policy details into a message.

Follow the upload path and deadline shown inside Seller Central because Amazon can change the interface.

• Read the insurance notification and open Amazon's current commercial liability insurance requirements.

• Compare the certificate with the legal entity name in your Seller Central account.

• Confirm that Amazon is shown as an additional insured using the required wording.

• Check the policy limits, dates, occurrence basis, deductible, product coverage, and insurer details.

• Make sure the certificate is complete and signed.

• Upload the document through the insurance or account-information area specified by Amazon.

• Save the submission confirmation and a copy of every document.

• Monitor Seller Central and email for an approval, rejection, or request for corrections.

Do not wait until the final day to upload the certificate.

A rejection can require the broker or insurer to issue a corrected certificate.

Common Reasons Amazon Rejects Insurance Certificates

Many rejections are document problems rather than proof that the underlying policy does not exist.

• The insured business name does not exactly match the Amazon legal entity.

• Amazon is missing as an additional insured or the wording is incomplete.

• The policy is written on the wrong basis.

• The certificate does not show the required limits.

• The deductible is missing or exceeds Amazon's allowed amount.

• The policy does not cover all Amazon-listed products.

• The policy has expired or the dates are unclear.

• The insurer or rating does not meet Amazon's requirements.

• The certificate is incomplete, unsigned, blurry, altered, or uploaded in an unsupported form.

• The seller uploaded a quote, invoice, application, or policy summary instead of the requested certificate.

Compare Amazon's rejection message with the certificate line by line.

Send the exact wording to your broker instead of asking for a general new document.

What Happens If You Do Not Maintain Insurance?

Failing to meet an insurance requirement can create both Amazon account risk and direct financial exposure.

Amazon may request reimbursement for amounts connected with eligible claims, restrict selling activity, or take account action under its agreements and policies.

The seller can also face legal defense costs, settlements, judgments, or business disruption without an insurer responding.

A lapsed policy can be a problem even when the original certificate was accepted.

Track the renewal date and begin the renewal process early enough to correct documents before coverage expires.

My guide to why Amazon sellers get in trouble explains why sellers should address compliance notices before they become account emergencies.

Does Amazon Pay Small Customer Claims?

Amazon's A-to-z claims process can handle certain customer claims involving bodily injury or property damage caused by products sold through Amazon.

Amazon has stated that it may directly pay qualifying claims of $1,000 or less and may seek reimbursement from a seller or insurer in certain circumstances.

The existence of that process does not remove the seller's insurance duties or responsibility for the product.

Do not rely on Amazon to absorb a claim simply because the requested amount looks small.

Report incidents promptly to the insurer and follow the instructions from Amazon, the broker, and legal counsel.

How To Reduce Product Liability Risk

Insurance is one layer of risk management rather than a replacement for safe products and good records.

• Work with suppliers that can provide reliable manufacturing, testing, and traceability records.

• Check the laws, standards, certifications, warnings, and labeling rules for each product and marketplace.

• Inspect samples and production units instead of relying only on supplier promises.

• Use clear instructions and warnings that match the product's real risks.

• Avoid unsupported safety, medical, performance, or compliance claims in the listing.

• Track batches, suppliers, testing documents, complaints, returns, and product changes.

• Investigate repeated defects, injuries, overheating, breakage, allergic reactions, or other safety signals quickly.

• Create a written response process for incidents, claims, recalls, Amazon notices, and insurer reporting.

• Tell the insurer when your products, territories, sales, entity, warehouse, or business model materially change.

Good documentation can help the insurer understand the business before a claim and help your team respond after an incident.

Frequently Asked Questions

Do All Amazon Sellers Need Insurance?

Not every Amazon.com seller is automatically required to submit insurance on the first day.

The current general trigger is more than $10,000 in gross proceeds in one month, or an earlier request from Amazon.

How Long Do I Have After Crossing $10,000?

Amazon currently states that qualifying insurance should be obtained and maintained within 30 days after exceeding the monthly threshold.

Follow any shorter or specific deadline shown in a direct Amazon notice.

Is The $10,000 Threshold Based On Profit?

No, the requirement refers to gross proceeds from Amazon transactions rather than profit after business expenses.

Do I Still Need Insurance If Sales Drop Below $10,000?

Amazon's rule says sellers must obtain and maintain coverage after the threshold is triggered.

Do not cancel only because a later month falls below $10,000 without confirming the current agreement and Amazon guidance.

Does FBA Insurance Cover My Products?

FBA is a fulfillment service and does not replace the seller's required commercial liability insurance.

The seller remains responsible for complying with the insurance rule and managing product risk.

Can I Use My Manufacturer's Insurance?

A manufacturer's policy does not automatically satisfy Amazon's requirement for your seller business.

Ask a broker and Amazon whether your entity is properly insured, whether the policy covers your sales, and whether Amazon is correctly added.

Does An LLC Protect Me Without Insurance?

An LLC can provide a legal separation between the business and its owners, but it is not a replacement for liability insurance.

Personal guarantees, misconduct, poor separation, local law, and the facts of a claim can affect the protection available.

Does Amazon Require A $1 Million Policy?

Amazon.com currently requires at least $1 million per occurrence and in the aggregate under its commercial liability insurance rules.

Marketplace-specific limits can differ, so check the agreement for the store where you sell.

What Email Should I Use To Contact Lawrence?

You can contact Lawrence Lipman at lipmaninsurance@gmail.com.

Mention Vova Even and explain that you need help reviewing insurance for an Amazon seller business.

Will Lawrence Guarantee The Cheapest Policy?

No insurance broker can responsibly guarantee the cheapest or best policy before reviewing the business and available insurers.

Ask Lawrence to help you compare a suitable option based on your products, entity, sales, marketplaces, and Amazon requirements.

Final Thoughts

You may not need Amazon seller insurance on the first day, but you should understand the rule before your store grows or Amazon sends a request.

For Amazon.com, the current trigger is more than $10,000 in gross proceeds during one month or a direct request from Amazon.

The policy must do more than exist.

It needs suitable liability coverage, compliant limits, the correct seller name, Amazon as an additional insured, an acceptable deductible, and a certificate Amazon can verify.

Insurance can also be worth considering below the threshold when your products create meaningful injury or property-damage exposure.

I recently purchased my own insurance through Lawrence Lipman and recommend contacting him to discuss your Amazon store.

Mention my name, Vova Even, provide complete business details, and compare the final policy with Amazon's current requirements before uploading it.