Amazon sellers insurance protect your business

Amazon sellers insurance protect your business

Amazon News

Recently, many sellers have reported that they have received news from Amazon. Amazon requests sellers with a total sales of $10,000 dollars for three consecutive months to provide proof of liability insurance for their products. It is a great way for you to protect yourself and your business with Amazon seller’s insurance. Hence today let’s check the more useful information about Amazon sellers insurance.

Amazon Requirements

From the current point of view, the group of sellers who have received insurance premium emails has involved toys, auto parts, 3C, clothing, beauty, pets, home textiles, outdoor sports, and many other categories.

According to Amazon’s request this time, the seller’s liability insurance must meet the following conditions:

  1. The total insured limit for each accident is at least US$1 million. And it covers the liability caused by the seller’s business operations or other related liabilities. Such as personal injury to the buyer caused by the product, etc.;
  2. The insurance object must cover all products sold through
  3. The insurance policy must designate Amazon and its assignee as the other insured.
  4. The name of the policyholder must match the name of the “legal entity” provided to Amazon.
  5. The policy must be valid for more than 90 days from the date of submission for verification.

Why do you need Amazon sellers insurance?

Is it necessary for the seller to pay product liability insurance?

Firstly, let’s check the product liability. Product liability refers to the legal compensation liability that the producer has caused personal injury or property damage to consumers and users due to product defects.

Product liability insurance includes not only the physical product itself, but also the packaging, containers, parts, equipment provided with the physical product, and other information such as instructions and warnings about the product.

Many manufacturers or sellers think that their products have no problems and will not be claimed. However, you’ll never know where the product liability lawsuits may come from.

Therefore, the insurance company will fight for you over the lawsuits if you have paid product liability insurance. 

General Liability Insurance

If you have a Professional Selling Plan, Amazon requires you to have General Liability Insurance. The requirement states as follows:

Sellers with professional selling plans on must provide proof of Commercial General Liability insurance. This insurance, obtained at the seller’s expense, shall cover up to $1,000,000 per occurrence and in the aggregate and must include product liability, bodily injury, or personal injury, property damage, and other requirements as stated in the Participation Agreement. The insurance must indicate that “, Inc., and its affiliates and assignees” are added as additional insureds.

Where to get liability insurance

You can contact insurance companies such as Wells Fargo, Progressive, Geico, etc. to receive quotes. What’s important, it is necessary for you to find the right person that can provide suitable insurance for your business.

And please let the insurance company know everything about your business and what your product does, in this way, they can provide the best insurance for your business.

Please remember, research more and then make the decision which insurance companies you will cooperate with. Of course, we recommend you go to the National Insurance Association, check the company name, and see if there is an insurance record.

How much liability insurance costs?

In fact, the premiums of different categories are different. Products with low risk coefficients have relatively lower insurance premiums. On the contrary, the higher the risk coefficient, the more insurance premiums.

In general, the most basic cost is generally $300-$600 /year.


Getting insurance for your Amazon business can really protect your product and business. And it is not complicated. Easy to get it.

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