Amazon Product Liability Insurance: What Sellers Need and Where to Get It

Amazon's seller agreement requires sellers to obtain product liability insurance when their gross proceeds from Amazon sales exceed $10,000 in any month. Once triggered, the requirement is ongoing — you must maintain continuous coverage.

The minimum coverage Amazon specifies: commercial general liability (CGL) insurance with at least $1 million per occurrence and $2 million aggregate. Amazon must be named as an additional insured on the policy.

Failure to provide proof of insurance when Amazon requests it can result in your selling privileges being suspended. Amazon periodically audits sellers and sends insurance verification requests via email — respond within the stated deadline (typically 30 days).

The purpose: product liability insurance protects both you and Amazon if a customer is injured or suffers property damage due to your product. Without insurance, a single product liability lawsuit could be financially devastating — and Amazon faces shared liability as the marketplace.

Product liability insurance covers claims arising from bodily injury or property damage caused by your product. Examples: a kitchen knife causes a cut injury, a defective electronics product causes a fire, a supplement causes an adverse reaction.

CGL policies typically also cover: advertising injury (claims that your product description infringed on a competitor's copyright), personal injury, and completed operations (injuries from a product after it has left your control).

What CGL does NOT cover: your own business property damage, employee injuries (requires workers' compensation), professional errors and omissions, and intentional acts. For most Amazon FBA sellers, product liability is the only required coverage.

For a Taiwan-based seller with a US LLC or selling under a Taiwan company, obtaining a US product liability policy is possible but requires working with providers who accept international policyholders.

Cost range: $300–$800/year for $1M per occurrence / $2M aggregate coverage on most consumer product categories. Categories with higher inherent risk (supplements, electronics, children's products, medical devices) pay more: $800–$2,500/year.

Providers that work with international Amazon sellers: NEXT Insurance (accepts international-owned US LLCs), Hiscox (international business coverage), CoverWallet (insurance broker that compares multiple carriers), and Lloyd's of London syndicates (for sellers who cannot qualify for standard US policies).

Process: you will need to provide your business registration documents, a description of your products (including any certifications), your annual revenue estimate, and your US business address (if applicable). Most providers can issue a policy certificate within 24–48 hours of application.

After receiving your policy, download the Certificate of Insurance (COI) and verify it names "Amazon Services LLC" or "Amazon.com, Inc., and its subsidiaries and assigns" as an additional insured before uploading to Seller Central.