Overview

Effective April 15 2025, Amazon’s Business Solutions Agreement for Canadian sellers adds two major obligations: a compulsory commercial general liability policy for merchants whose monthly gross sales on Amazon.ca exceed CAD 10,000, and a broadened A‑to‑Z claim reimbursement rule that can hold sellers liable for the full payout Amazon makes to customers, including shipping and taxes. The updates directly affect cash flow, compliance costs, and risk management for anyone doing business on the Canadian marketplace.

Key Points

• Insurance trigger — Sellers crossing CAD 10,000 in monthly gross proceeds must obtain at least CAD 1 million in liability coverage within 30 days.
• Policy requirement — The policy must name Amazon as an additional insured and cover each occurrence and the aggregate limit at the CAD 1 million level.
• Expanded claim liability — If Amazon attributes a property‑damage or personal‑injury claim to a seller, the merchant must repay the entire amount Amazon paid the buyer, now including shipping fees and applicable taxes.
• 30‑day appeal window — Sellers have a strict 30‑day period to challenge an A‑to‑Z decision, after which the reimbursement becomes final.
• Proof‑of‑coverage enforcement — Amazon can request insurance certificates at any time and may suspend accounts that cannot verify compliance.

How the New Requirements Work

1. Revenue monitoring — Amazon continuously tracks each seller’s monthly gross sales on Amazon.ca.

   • Example: A home‑decor vendor records CAD 11,200 in sales for March 2025. The system flags the vendor as having crossed the CAD 10,000 threshold.

2. Insurance acquisition — Once flagged, the seller receives a notification and has 30 days to secure a commercial general liability policy that meets Amazon’s specifications.

   • Example: The home‑decor vendor contacts an e‑commerce‑focused broker, obtains a CAD 1 million per‑occurrence policy, and adds Amazon as an additional insured.