As an Amazon seller, protecting your business from potential legal and financial risks is crucial. Amazon Liability Insurance is designed to cover damages, legal fees, and claims that may arise from defective products, injuries, or other liabilities. If you’re selling on Amazon, understanding and obtaining liability insurance is a necessary step to comply with Amazon’s policies and safeguard your business.
Why Do You Need Amazon Liability Insurance?
Amazon’s Insurance Requirement – If you sell over $10,000 in a month, Amazon requires you to have liability insurance.
Protection Against Claims – Covers product defects, injuries, and third-party property damage.
Financial Security – Avoid paying out-of-pocket for expensive lawsuits.
Increased Customer Trust – Shows professionalism and commitment to product safety.
Types of Coverage in Amazon Liability Insurance
General Liability Insurance – Covers bodily injuries, property damage, and legal costs.
Product Liability Insurance – Protects against claims related to defective or harmful products.
Commercial General Liability (CGL) Insurance – Comprehensive coverage that includes product liability.
Errors & Omissions (E&O) Insurance – Covers issues related to misinformation or defective services.
Cyber Liability Insurance – Protection against data breaches and cyber threats.
Amazon’s Insurance Requirements
To comply with Amazon’s insurance policy, your coverage must:
Be at least $1 million per occurrence and in aggregate.
Cover product liability, bodily injury, and property damage.
List Amazon.com, Inc. and its affiliates as additional insured parties.
Be issued by an insurance provider with at least an A- rating from AM Best.
How to Get Amazon Liability Insurance
1. Choose a Reputable Insurance Provider
Popular insurance providers offering Amazon-compliant coverage include:
Next Insurance – Affordable plans for eCommerce businesses.
Hiscox – Tailored liability insurance for Amazon sellers.
Thimble – Flexible, on-demand insurance options.
Marsh – Amazon’s official insurance partner.
2. Get a Quote and Compare Policies
Compare different providers based on:
Coverage limits and exclusions.
Monthly vs. annual premiums.
Additional benefits like cyber liability or global coverage.
3. Purchase and Submit Proof to Amazon
Once you purchase the policy, you must upload your Certificate of Insurance (COI) to Amazon via Seller Central.
Amazon may request proof of coverage at any time, so ensure your policy is active and up to date.
Final Thoughts
Having Amazon Liability Insurance is not just about compliance—it’s about protecting your business from unexpected financial risks. Whether you’re a small seller or running a large-scale eCommerce operation, investing in the right insurance ensures peace of mind and long-term business stability.
Looking for Amazon-compliant insurance? Choose a trusted provider today and secure your business!
