Overview

Amazon.ca has broadened its A‑to‑Z Guarantee to include commercial liability claims for defective items that cause property damage or personal injury. Effective immediately, any seller who generates more than CAD 10,000 in a single month must hold a valid commercial liability insurance policy, and Amazon may request proof at any time. This change aligns Canada’s requirements with those already in place for U.S. sellers and introduces new cost and compliance considerations for Canadian‑market vendors.

Key Points

• Insurance trigger at CAD 10,000 — Sellers crossing the CAD 10,000 monthly sales mark must secure a commercial liability policy; Amazon can audit insurance status regardless of sales volume.
• A‑to‑Z Guarantee now covers liability — The guarantee, previously limited to refund disputes, now also addresses claims for property damage or personal injury caused by defective products sold on Amazon.ca.
• Claims under CAD 1,000 paid by Amazon — For verified liability claims below CAD 1,000, Amazon directly compensates the buyer and merely notifies the seller, provided the seller’s insurance is current.
• Claims over CAD 1,000 involve insurers — When a claim exceeds CAD 1,000, Amazon works with the seller’s insurer to validate the claim and arrange payment to the customer.
• Uninsured sellers face full exposure — Sellers who exceed the sales threshold without coverage are personally liable for the entire amount of any approved claim.

How the Claims Process Works

1. Small‑Claim Handling (≤ CAD 1,000) — A buyer files an A‑to‑Z claim alleging product‑related damage worth CAD 800; Amazon verifies the defect, pays the buyer the CAD 800, and sends a notification to the seller’s dashboard. The seller’s insurance remains untouched as long as it is active.
2. Large‑Claim Coordination (> CAD 1,000) — A customer reports a CAD 2,500 injury from a malfunctioning electric kettle; Amazon confirms the defect, then contacts the seller’s insurer to confirm coverage and to process the payout to the buyer. The seller monitors the claim status through the A‑to‑Z claims tab.