Overview

Amazon now requires sellers to carry commercial liability insurance once their cumulative sales exceed $10,000. The policy must be in place within 30 days of crossing that threshold, and failure to provide proof can lead to account warnings or suspension. Staying compliant protects the business from third‑party claims and keeps listings active.

Key Points

• Trigger amount — Sellers are obligated to obtain a liability policy within 30 days after Amazon records gross proceeds above $10,000.
• Required policy type — Amazon accepts only a Commercial General Liability (CGL) policy that covers product‑related injuries, bodily harm, and property damage.
• Minimum coverage — The exact dollar amount is disclosed in the performance notification; most sellers are asked for at least $1 million in coverage.
• Proof submission — A current Certificate of Insurance (COI) must be uploaded through the “Insurance” section of Seller Central.
• Ongoing obligation — The policy must remain active for as long as the seller’s sales stay above the $10,000 threshold; any lapse triggers a warning.
• Exempt categories — Sellers using only the “Fulfilled by Amazon (FBA) Small and Light” program or whose annual sales stay well under $10,000 are not immediately subject to the rule.

How the Insurance Requirement Works

1. Sales tracking — Amazon continuously monitors each seller’s gross proceeds. Example: A private‑label brand sells $13,200 worth of kitchen gadgets by the end of March; Amazon flags the account as having crossed the $10,000 line.
2. Notification and deadline — Within a few days, the seller receives an email and a Seller Central alert stating that a CGL policy is now mandatory, together with a 30‑day deadline to upload proof. Example: The brand receives a notice on April 2 that the COI must be submitted by May 2.
3. Policy purchase and COI upload — The seller purchases a qualifying CGL policy, ensures Amazon Services LLC is listed as an additional insured, and uploads the COI to the “Insurance” portal. The seller buys a $1 million coverage policy on April 15, adds Amazon as an additional insured, and uploads the PDF on April 20, well before the deadline.