Overview

Amazon has tightened its liability‑insurance policy for third‑party sellers, making the rules effective for any seller who tops $10,000 in gross sales in a single month. The update adds a proactive notification duty, shortens the compliance window to 30 days, and changes the documentation process in Seller Central. Sellers who ignore the new standards risk immediate listing suppression and a loss of sales momentum.

Key Points

• 30‑day compliance clock — Once a seller’s monthly gross sales exceed $10,000, Amazon gives exactly 30 days to upload a qualifying policy before listings are hidden.
• Proactive notice required — Sellers must alert Amazon before an insurance policy expires or is materially altered, replacing the previous “Amazon will notice you” approach.
• $1 M minimum coverage — Acceptable policies must provide at least $1 million per occurrence and $1 million aggregate for product liability, completed operations, bodily injury, personal injury, broad‑form property damage, and broad‑form contractual liability.
• No additional‑insured clause — Amazon no longer demands that sellers name Amazon.com Services LLC as an additional insured, cutting typical endorsement fees by up to 25 percent.
• Two‑to‑three‑day verification — Uploaded certificates are reviewed by Amazon’s compliance team within 48‑72 hours; any mismatch triggers a rejection and restarts the 30‑day clock.

How the New Insurance Requirements Work

1. Sales trigger detection — Amazon’s system scans monthly gross proceeds; for example, a seller of kitchen gadgets who records $12,500 in May will automatically receive a “insurance required” alert on June 1.
2. Notification and upload — The seller must log into Seller Central, navigate to the Insurance section under Account Settings, and upload a certificate that lists the exact legal business name, coverage limits, effective dates, and Amazon.com Services LLC as a certificate holder. The upload must occur within the 30‑day window; a failure to do so results in immediate listing suppression.