Amazon Product Liability Insurance, Now a Requirement

Selling on Amazon involves more than advertising and shipping. Any Amazon seller whose sales exceed a certain amount is required to show Amazon a current Amazon product liability insurance policy. Without this coverage, the account may be suspended or sales may be blocked. We cover the topic in more detail in our end-to-end guide to supplier vetting, compliance and private label.

What Is Amazon's Official Insurance Requirement?

According to Amazon, Section 9 of the Amazon Services Business Solutions Agreement states: "Sellers whose sales on Amazon.com exceed USD 10,000 in total within a month are required to carry valid product liability insurance. You will also need to upload proof of your policy to Amazon within 30 days after this threshold is exceeded. Our Amazon Private Label Starter Guide may help with the next steps.

Policy criteria accepted for Amazon product liability insurance

The commercial liability insurance policy Amazon requests should meet the following conditions:

• Policy type: General, umbrella or excess liability
• Coverage limit: At least USD 1,000,000 both per occurrence and in the aggregate
• Policy basis: Preferably occurrence-based (claims-made is accepted only in certain cases)
• It should cover all Amazon sales
• The deductible should be no more than USD 10,000
• Amazon.com Services LLC and its affiliates should be listed on the policy as "additional insured"
• The insurer should hold an S&P A- or AM Best A- financial rating
• The policy should be signed by an authorized representative of the insurer
• Amazon should receive 30 days' prior notice of any cancellation or change

More information: Amazon Business Insurance FAQ

Can You Get Liability Insurance Without Owning an LLC?

No.
Amazon expects the policy's "legal entity" name to match the company name registered on your Amazon account.
For this reason: our article What Is Amazon SPN? What Are Its Benefits? also covers this topic.

You need to have an LLC,
your Amazon account should be linked to this LLC,
and the liability insurance should be issued in the name of this LLC.

For single-member LLCs, your DBA (doing business as) name may appear on the policy, but this is an exception.

How Export Partners Can Help You

At Export Partners, we manage this process for you end to end:

What the Service Package Includes:

• U.S. LLC formation (Wyoming, Florida or another state based on your needs)
• EIN (tax ID) application
• An Amazon-compatible suite address
• The right policy from SPN-approved insurance providers
• Delivery of the policy in a format ready to upload to Amazon
• Upload support and follow-up in Amazon Seller Central
• Annual reminders and renewal tracking

Average Policy Prices:

For an exact price, your product category and estimated annual Amazon revenue are all we need.

Conclusion: Buying the Right Policy Is Not Enough, It Must Be Uploaded to Amazon Correctly

Policies from providers that are not registered in Amazon's SPN system are often rejected.
Sellers who upload incorrectly may see their accounts suspended.
We manage this process in full compliance on both the insurance side and the Amazon side.