Help CenterAmazon requires their Sellers to have commercial general liability insurance if they earn more than $10,000 in gross sales per month. The policy must be obtained and certificate of insurance provided to Amazon, within 30 days of exceeding the $10,000 gross sales threshold, or your seller account can be suspended.
Even if you’re just starting out or are a little below the insurance threshold, we still recommend being insured. You never know what could happen with one of the products you sell. And just because you don’t meet Amazon’s threshold doesn’t mean you won’t be liable if a customer gets injured.
Even if you’re just starting out or are a little below the insurance threshold, we still recommend being insured. You never know what could happen with one of the products you sell. And just because you don’t meet Amazon’s threshold doesn’t mean you won’t be liable if a customer gets injured.
Insurance policy criteria
Your commercial liability insurance policy must meet all of the following criteria:
Your commercial liability insurance policy must meet all of the following criteria:
- The insurance policy type can be either commercial general, umbrella, or excess liability and be occurrence based, except for certain product categories that are outlined in the Frequently asked questions;
- The policy limit must be at least USD 1 million per occurrence and in aggregate, and cover liabilities caused by or occurring in conjunction with your business operations, including products, products/completed operations and bodily injury;
- The deductible for any policy(ies) must not be greater than $10,000. Any deductible amount must be listed on your Certificate of Insurance;
- The policy must cover all sales from products you have listed on the Amazon.com store;
- The policy must name "Amazon.com Services LLC and its affiliates and assignees" as additional insureds;
- Except for single-member LLCs, your insured name must match the “legal entity” name you provided to Amazon in your Account Info. For single member LLCs, where your legal entity name is different than the name you publicly use to identify your business (“trade name,” “doing business as,” or “DBA”), it is also acceptable for your insured name to match your trade name;
- Your insurance provider must have global claim handling capability and a financial rating of S&P A- and/or AM Best A- or better (if S&P or AM best is not valid or used in the country where you are required to obtain insurance, a local equivalent is allowed);
- The policy must be completed in its entirety and signed; and
- Your insurance provider must give Amazon at least 30 days’ notice of cancellation, modification, or nonrenewal.
Net-net, if your gross sales are over $10,000 in one month, you will need to carry insurance with at least $1,000,000 in coverage.
Insurance options according to Amazon:
References:
https://sellercentral.amazon.com/help/hub/reference/G200386300?ref=ag_G200386300_cont_521&locale=en-US
https://www.junglescout.com/resources/articles/amazon-seller-insurance/#:~:text=%E2%80%9CUnder%20section%209%20of%20the,if%20otherwise%20requested%20by%20us
Insurance options according to Amazon:
References:
https://sellercentral.amazon.com/help/hub/reference/G200386300?ref=ag_G200386300_cont_521&locale=en-US
https://www.junglescout.com/resources/articles/amazon-seller-insurance/#:~:text=%E2%80%9CUnder%20section%209%20of%20the,if%20otherwise%20requested%20by%20us