Overview

Amazon is implementing a major overhaul of its commercial liability insurance mandates, scheduled to take effect on November 2, 2026. This policy shift moves the platform away from a purely revenue-driven compliance model toward a risk-based framework that prioritizes product safety categories. Sellers must understand these changes immediately, as they will fundamentally alter how high-risk product categories are managed and how sellers based in Mainland China must secure their coverage to remain active on the platform.

Key Points

• Mandatory coverage threshold — Sellers are required to maintain a minimum of $1 million in coverage per occurrence and $1 million in the aggregate if their monthly gross proceeds exceed $10,000.
• Enhanced safety categories — New regulations mandate insurance for specific high-risk product types regardless of whether the seller reaches the $10,000 monthly sales milestone.
• High-risk product examples — Impacted categories include children's goods, cosmetics, ingestible items, and any products containing lithium batteries.
• Mainland China sourcing mandates — Sellers operating out of Mainland China will be required to utilize the Amazon Insurance Accelerator (AIA) to obtain compliant insurance policies.
• Strict documentation deadlines — Starting November 2, 2026, Amazon will automatically reject any insurance documentation from Mainland China-based sellers that was not processed through the AIA.
• Existing policy protections — Sellers in China who hold valid third-party policies submitted before the deadline may continue using them until their specific expiration date arrives.

What's Changing

The core of this update is a transition from a financial trigger to a safety-based trigger for insurance requirements.

1. Shift from revenue to risk triggers — Previously, insurance was primarily a function of sales volume, such as a seller of $5,000 in toys per month potentially avoiding the requirement; under the new rules, the product type itself triggers the need for $1 million in coverage.