Amazon Expands Commercial Liability Insurance Requirements
Amazon will expand commercial liability insurance requirements from November 2, 2026. Certain high-risk categories will no longer be subject to the $10,000 monthly sales threshold, and new policies submitted by sellers in mainland China must be obtained through AIA.
What are the key facts?
- 1Commercial liability insurance requirements expand from November 2, 2026
- 2Certain high-risk categories are no longer subject to the $10,000 sales threshold
- 3New insurance submitted by mainland China sellers must be obtained through AIA
What happened?
An Amazon seller policy update states that commercial liability insurance requirements will be expanded further from November 2, 2026. Previously, sellers whose total monthly sales on Amazon.com exceeded $10,000 had to obtain commercial liability insurance within the specified period, generally with minimum coverage of $1 million per occurrence and in the aggregate. The new rules add exceptions for categories with enhanced safety listing requirements: even sellers below the $10,000 monthly sales threshold must maintain commercial liability insurance covering the relevant products. Examples listed in the original notice include children’s products, cosmetics, ingestible products, and lithium-battery products. At the same time, from November 2, new insurance policies submitted by sellers in mainland China must be obtained through Amazon Insurance Accelerator; previously submitted third-party policies that remain valid may continue to be used until expiration. The sellers most affected include Chinese cross-border sellers, small and emerging brands, high-risk consumer-product sellers, and businesses that have just started selling but have entered regulated categories.
What does this mean for cross-border sellers?
From November 2, 2026, sellers of high-risk products such as children’s products, cosmetics, ingestible products, and lithium-battery products may need to maintain commercial liability insurance even if monthly sales are below $10,000. Sellers in mainland China must obtain newly submitted policies through Amazon Insurance Accelerator, while existing valid third-party policies may be used only until expiration.
What should sellers do now?
- 1This week, screen listings for children’s products, cosmetics, ingestible products, and lithium-battery products across mainland China stores, create a list of affected ASINs, mark current policy coverage for each, and produce a reviewable spreadsheet.Compliance
- 2This week, verify the submission status, covered products, and expiration dates of existing third-party policies for mainland China stores, set expiration reminders, mark policies requiring new submission after November 2, 2026 as requiring acquisition through AIA, and complete a follow-up list.