Amazon Insurance Requirements: Everything You Need to Know About Amazon Insurance

by Tomer

May 1, 2022

To preserve Amazon sellers’ assets and bottom line, they must protect themselves from potential liabilities. What’s even better is that Amazon is aware of the dangers. Because of this, they require sellers to get insurance coverage for their business. But what exactly are Amazon insurance requirements?

In this blog post, I will discuss what are Amazon insurance requirements, why sellers need one, and how to get one.

Read until the end, to learn about the different insurance companies that are specific to Amazon sellers. 

What are Amazon Insurance Requirements?

Amazon Insurance Requirements

If you are an Amazon seller with a Pro Merchant account and have $10,000 gross sales or more for three consecutive months, Amazon will require you to get business insurance. However, even if you don’t fall within Amazon’s terms, you may want to get one to ensure you’re covered if someone claims your product caused damage or they were injured.

For instance, if you’re selling toys and a kid got injured using them. The parents may file complaints, and getting insurance may help protect you from financial losses. Amazon is strict when it comes to selling toys on its platform, especially for sellers who fulfill their own orders. Read my article on how to get ungated in toys on Amazon to learn more about it.

Before you purchase an insurance policy, make sure that the insurance you’re getting meets Amazon insurance requirements. Here are some of the things Amazon will require.

Liability Coverage

To meet Amazon’s seller insurance requirements for Pro Merchants, you’ll need $1 million in liability coverage per incident and aggregate.

Apart from $1 million coverage, your policy must also cover:

  • Products operations
  • Products liability
  • Bodily injury
  • Property damage
  • Contractual coverage

It is important to know that not all general liability plans cover everything mentioned above, especially product liability. This is why it is crucial to choose the right insurance company.

Include Amazon as an Additional Insured

You must list Amazon and its assignees as additional insureds on your policy when purchasing coverage. Simply put, in case someone sues Amazon due to something that you did, Amazon is protected from your chosen insurance provider. 

Because Amazon is listed as an additional insured, your insurance policy will cover the expense of defending them in a lawsuit, as well as any settlement won, up to the policy aggregate limit.

Proof of Coverage

Amazon may send you a certificate of insurance request (COI). If Amazon requests proof of coverage, you may send it to Amazon’s address and attention to Risk Management.

Other criteria include:

  • The policy type can be an excess liability, umbrella, or commercial general. It must also be written on an occurrence basis. 
  • The insurance provider you will hire should have a financial rating of S&P A and or AM Best A. In case the two are not valid or are not being used in the country where you need to get insurance, you can opt for a local equivalent.
  • In case of non-renewal, modification, or cancellation, the insurance provider should give at least 30 days’ notice to Amazon.
  • The deductible should not be more than $10,000 for any policy, and all deductible amounts should be listed on the certificate insurance.
  • The policy should cover all sales from all the listings you have on Amazon.
  • The legal entity name that you submitted to Amazon must be similar to your insured name. 
  • The policy should have a validity of at least 60 days from the date you submitted it to Amazon.

It’s a little difficult where to locate information about Amazon’s insurance requirements in Seller Central. However, Amazon provides various policies that you, as a seller, must follow on the Program Policy assistance page.

You can find the Pro Merchant Insurance Requirements near the bottom of the policy list.

Why Do Amazon Sellers Need Insurance?

Amazon Insurance Requirements

In case something goes wrong, Amazon does not want the obligation. So it’s all up to you to ensure that you have the necessary insurance.

The goal of this rule is to protect you and your company’s assets and pay any financial liabilities that may arise as a result of injuries, accidents, or lawsuits.

While there’s a very slim chance that a buyer will sue a seller, it’s better to be safe than sorry. Plus, it’s part of Amazon’s regulations for Pro Merchant, so it is best to comply. 

Where to Get Liability Insurance

It is fairly easy to apply for Commercial General Liability, Umbrella, and or Excess Liability Insurance coverage. All you need to do is contact insurance companies to get quotes.

Because product liability insurance is the most common requirement, your price will be based on your projected yearly income. The average cost is usually between $500 and $1,000.

Insureon allows you to quickly compare prices from multiple insurance companies. They will send you several quotes to compare. However, be sure you inform the insurance agent that you are an Amazon seller ahead of time. This will ensure that all Amazon insurance requirements are met.

Amazon now has an insurance accelerator to help sellers obtain more affordable insurance. Amazon had partnered with Marsh to provide a network of insurance providers that had undergone thorough review and screening. This way, Amazon sellers can get quotes easily and be insured fast.

You can access the list of the insurance marketplace and accelerator program at the Seller Central under the Business Insurance section. You need to log in to your account in the Seller Central to see the different insurance companies. From there you can compare policies and quotes from different insurance providers.

Are there Insurance Companies Specifically for Amazon Sellers?

Amazon Insurance Requirements

It is best to get insurance from companies specific to Amazon sellers and e-commerce sellers. Some of these insurance companies are:


Next has a rating of A-Excellent by AM Best. They insure not only Amazon sellers but also other industries such as architects and engineers, auto services, entertainment, construction, food and beverage, financial services, and a lot more.

Bunker Insurance

Bunker Insurance has been in the industry since 2015 and is founded by Chad Nitschke and Dan Feidt. Bunker is one of the trusted and most recommended insurance companies by top Amazon sellers. 

Well Insurance

Well Insurance was by a successful e-commerce seller and a group of experienced independent insurance agents. Their main goal is to help successful online sellers to meet their needs. They recognize the risks and vulnerabilities that e-commerce sellers face all the time. Some of the coverage options they offer General liability, product liability, Umbrella, Inventory, Long-standing Amazon insurance, and a lot more. 

The best thing about getting insurance from the companies mentioned above is they fully understand the kind of coverage you need being an Amazon seller. The process will be easier as they already know exactly how they can assist you.


It is always best to be prepared for the worst. Getting insurance for your business will protect you and your business in case your customer sues you for whatever reason. Leave your comments below if you have more questions regarding Amazon insurance requirements. 

Need a guide on Amazon FBA? Read my post, What is Amazon FBA: Complete Amazon FBA Guide in 2023 to learn everything you need about Amazon FBA. You can also check out my Amazon FBA Course to learn the right mindset and methods that no other FBA course creator offers.

About the author

My name is Tomer, and I founded Sourcing Monster to share proven tips and methods that I use every day for my Amazon business to provide value and growth for you as well as you journey through your own business!

Feel free to comment or share any feedback down below!

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