Amazon Liability Insurance Requirements (2025): A Practical Guide for Professional Sellers 

One faulty desk lamp. Forty‑eight‑thousand dollars in damages. One relieved seller who had coverage.

Product mishaps happen, and when they do, Amazon expects the party that lists the product—not the marketplace—to shoulder the risk. The way to do that is commercial liability insurance. Below is a concise, plain‑English guide that tells you exactly who needs it, what it must include, and how to stay 100 percent compliant.

1. Who Needs Insurance and When 

• You are an Amazon Seller; and
• Your gross sales hit US $10,000 (or more) in any single month.
  
  Hit that threshold and you have 30 days to upload a compliant Certificate of Insurance (COI) to Seller Central. 

2. Amazon’s 2025 Policy Checklist 

Your policy must: 

• Provide at least US $1 million in limits per occurrence and in aggregate.
• Be occurrence‑based (claims‑made is valid only where Amazon expressly allows it and you purchase ≥ 3 years of tail coverage).
• Include Products / Completed Operations.
• List “Amazon.com Services LLC and its affiliates and assignees” as Additional Insured.
  
• Carry a deductible no higher than US $10,000.
• Be issued by an insurer rated A‑ (A.M. Best) or better (or equivalent) and licensed where you do business.
  
• Show the policy number, effective dates, and seller’s legal name matching your Amazon account. 

3. Where to Get a Compliant Policy 

• Amazon Insurance Accelerator – A curated panel of insurers that already understand the checklist above. You can fetch multiple quotes and receive a digital COI ready for upload.
  
• Traditional brokers – Perfectly acceptable so long as the broker customizes the policy to every bullet point. 

4. What Happens If You Skip Coverage 

Expect one or more of the following, often without advance warning:

• Listing removals.
• Payment‑account holds.
• Full account suspension until you submit a valid COI.

Worse, if a claim lands while you are uninsured, you bear the legal costs personally. 

5. How Much Does It Cost? 

Low‑risk private‑label categories (e.g., apparel or books) often see premiums between US $300–$900 per year.  

Higher‑risk goods – think electronics, supplements, or hoverboards – can run several thousand.  

Either way, a compliant policy is cheaper than a single product‑liability claim or an account suspension. 

6. Quick Compliance Tips 

• Store a PDF copy of your COI in a safe place and set a calendar reminder 30 days before renewal.
• If you add a new product line, confirm it falls within your policy’s “covered products” description.
• For claims‑made policies (where permitted), buy tail coverage before you cancel or switch carriers. 

 
This article provides general information and does not constitute legal or insurance advice. Consult a qualified professional for guidance tailored to your business.