Amazon Simplifies EU Insurance Rules and Revises A-to-Z Guarantee for Product Liability Claims
Amazon will amend its EU Business Solutions Agreement effective Jan 23 2025, removing the need to list Amazon as an additional insured on liability policies for sellers above the €5,000 monthly revenue threshold, and introducing a new A‑to‑Z Guarantee product‑liability workflow with a 7‑day evidence window and a 14‑day decision timeline.
Overview
Amazon will revise its Business Solutions Agreement for sellers in the European Union effective January 23 2025. The update removes the need to list Amazon as an additional insured on commercial liability policies and introduces a new A‑to‑Z Guarantee workflow for product‑liability claims. Sellers must adjust insurance documentation and familiarize themselves with the altered claims process to stay compliant.
Key Points
- Additional‑insured clause eliminated — Sellers no longer have to name Amazon or its assignees on liability policies once they exceed the €5,000 monthly revenue threshold.
- Coverage threshold unchanged — The €5,000 monthly gross‑proceeds trigger for mandatory commercial liability insurance remains in place.
- A‑to‑Z Guarantee overhaul — The procedure for handling defective‑product claims that cause property damage or personal injury in EU marketplaces has been redesigned.
- Business Solutions Agreement updates — Multiple sections of the BSA are being rewritten to align with the General Product Safety Regulation and the Digital Services Act.
- Compliance deadline — All affected sellers must meet the new requirements by the January 23 2025 implementation date or risk account restrictions.
- Potential premium impact — Removing the additional‑insured requirement may allow insurers to offer lower premiums, especially for small‑scale sellers.
How the Changes Work
Insurance Requirement Simplification
- Eligibility check — Amazon verifies whether a seller’s average monthly gross proceeds in EU stores exceed €5,000. For example, a seller generating €6,200 in May will be flagged for mandatory coverage.
- Proof of coverage request — If the threshold is met, Amazon asks the seller to upload a current commercial liability certificate. A seller selling home‑decor items can submit a PDF of their policy through Seller Central.
- Removal of Amazon as additional insured — The uploaded policy no longer needs a clause naming “Amazon.com, Inc. and its affiliates” as an additional insured. A seller who previously paid an extra €150 for that endorsement can now request its removal.
Analysis & Recommendations
Why This Matters
Sellers must upload a revised liability certificate without Amazon as an additional insured by Jan 23 2025, or risk account restrictions. The change can lower premiums (e.g., €150 per policy) and forces sellers to adapt claim‑handling SOPs to a faster, evidence‑driven process.
Key Takeaways
- Additional‑insured clause eliminated for sellers exceeding €5,000 monthly EU gross proceeds, effective Jan 23 2025.
- Minimum liability limit remains €1 million per occurrence; policies below €500 k will be rejected.
- New A‑to‑Z product‑liability queue gives buyers 7 days to submit evidence and forces Amazon to decide within 14 days.
- Non‑compliance after Jan 23 2025 may trigger account restrictions; insurers may reduce premiums by up to €150 per policy.
Recommended Actions
- →Log into Seller Central → Performance > Account Health → ‘Upload Insurance’ and submit a liability certificate without Amazon as additional insured...
- →Create an automated alert in your sales dashboard for EU gross proceeds ≥ €5,000 to trigger quarterly insurance verification.
- →Update SOPs: train support staff to recognize ‘product‑liability’ claims, collect required evidence (photos, CE‑mark, lab test) within 7 days, and ...
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