Overview

Amazon has begun emphasizing the importance of product liability insurance for third‑party sellers operating in the United Kingdom. While the marketplace does not yet require a policy for every category, the guidance signals that adequate coverage is becoming a de‑facto baseline, especially for high‑risk items. Sellers who import goods from overseas face the greatest exposure, as UK law can treat them as the importer of record and hold them directly liable for any defects.

Key Points

• Amazon’s messaging intensifies — The platform now routinely reminds UK sellers to secure product liability insurance, hinting that future mandates could follow.
• Coverage still optional, but strongly advised — No universal rule forces every seller to be insured, yet Amazon frames insurance as a core best practice for serious businesses.
• High‑risk categories under the microscope — Electronics, children’s toys, cosmetics, dietary supplements, and kitchen appliances are singled out for tighter scrutiny.
• Policy specifics matter — A generic policy is insufficient; sellers must ensure limits match product risk, the policy names online marketplace sales, and it includes legal defence costs.
• UK legal exposure is strict — The Consumer Protection Act 1987 imposes liability without requiring proof of negligence, meaning any defective product can trigger a claim.
• Brexit creates a distinct compliance landscape — Post‑EU rules are now administered by the Office for Product Safety and Standards, and Amazon is aligning its enforcement with these domestic requirements.

How Amazon’s Guidance Works

1. Reminder notifications — Amazon sends automated alerts to UK seller accounts, prompting them to upload proof of liability coverage; for example, a seller of Bluetooth headphones receives an email linking to the “Insurance Upload” page.
2. Marketplace screening — When a listing is created, Amazon’s compliance engine checks the seller’s account for a valid policy tag; if missing, the product may be placed on hold pending verification, as seen with a new line of children’s puzzles.