🛡️ PROTECT YOUR BUSINESS: Insurance Requirements You Need to Know
Hello Sellers!
Is your business growing on Amazon? Congratulations! With success comes the responsibility to protect your business. Let's walk through everything you need to know about commercial liability insurance requirements to keep your business secure and compliant.
When Do You Need Insurance? You must obtain commercial liability insurance within 30 days if you:
- Exceed $10,000 in monthly gross sales on Amazon.com
- Receive a specific request from Amazon
Your Quick Insurance Checklist ✅
1. Policy Requirements
- Choose either commercial general, umbrella, or excess liability insurance
- Must be occurrence-based (with specific exceptions)
- Minimum $1 million coverage per occurrence and in aggregate
- Maximum $10,000 deductible
- Must cover all products listed on Amazon.com
2. Essential Details
- Name "Amazon.com Services LLC and its affiliates and assignees" as additional insureds
- Insured name must match your legal entity name on Amazon
- Insurance provider must have global claim handling capability
- Provider must maintain S&P A- and/or AM Best A- rating or local equivalent (if S&P or AM best is not valid or used in the country where you are required to obtain insurance, a local equivalent is allowed)
3. Documentation Needs
- Policy must be complete and signed
- Certificate of Insurance required
- 30-day notice requirement for any policy changes
Need Help Getting Insurance? 💡 We've made it easier with Amazon Insurance Accelerator- a network of pre-vetted insurance providers offering competitive rates to qualifying sellers.
Ready to Submit Your Insurance? Here's How:
- Obtain your Certificate of Insurance
- Ensure it meets all requirements
- Submit through Seller Central
Have Questions? Drop them in the comments below! We're here to help you protect your growing business.
🛡️ PROTECT YOUR BUSINESS: Insurance Requirements You Need to Know
Hello Sellers!
Is your business growing on Amazon? Congratulations! With success comes the responsibility to protect your business. Let's walk through everything you need to know about commercial liability insurance requirements to keep your business secure and compliant.
When Do You Need Insurance? You must obtain commercial liability insurance within 30 days if you:
- Exceed $10,000 in monthly gross sales on Amazon.com
- Receive a specific request from Amazon
Your Quick Insurance Checklist ✅
1. Policy Requirements
- Choose either commercial general, umbrella, or excess liability insurance
- Must be occurrence-based (with specific exceptions)
- Minimum $1 million coverage per occurrence and in aggregate
- Maximum $10,000 deductible
- Must cover all products listed on Amazon.com
2. Essential Details
- Name "Amazon.com Services LLC and its affiliates and assignees" as additional insureds
- Insured name must match your legal entity name on Amazon
- Insurance provider must have global claim handling capability
- Provider must maintain S&P A- and/or AM Best A- rating or local equivalent (if S&P or AM best is not valid or used in the country where you are required to obtain insurance, a local equivalent is allowed)
3. Documentation Needs
- Policy must be complete and signed
- Certificate of Insurance required
- 30-day notice requirement for any policy changes
Need Help Getting Insurance? 💡 We've made it easier with Amazon Insurance Accelerator- a network of pre-vetted insurance providers offering competitive rates to qualifying sellers.
Ready to Submit Your Insurance? Here's How:
- Obtain your Certificate of Insurance
- Ensure it meets all requirements
- Submit through Seller Central
Have Questions? Drop them in the comments below! We're here to help you protect your growing business.
2 replies
Seller_kIukTwdhvntAp
"When Do You Need Insurance? You must obtain commercial liability insurance within 30 days if you:
Exceed $10,000 in monthly gross sales on Amazon.com
Receive a specific request from Amazon"
This keeps popping up in the questions on the Forum from time to time so how about a reasonable answer.
A seller 'gets luck' and exceeds the $10,000 and then drops into a NORMAL pattern and NEVER reaches that number again.
During COVID when Amazon shut down except for 'essentials (NONE of which I sell!) I hit $10,000 several months in a row. Then, for the past four YEARS I am lucky to hit $6,000 or $7,000 a month. Yet, I am STILL required to have the insurance.
How about if AMAZON adds a NEW condition -- if a seller does NOT hit $10,000 for 12 consecutive months they are NO LONGER required to have the insurance.
Only if they then exceed the $10,000 in any two consecutive quarters of sales (at least 2 of 6 months) does the requirement get put back in place.
That way smaller sellers (and seasonal ones where they have ONE good month a year) can get some relief.
