Amazon to Adjust Commercial Liability Insurance Requirements
Amazon plans to update its commercial liability insurance rules from November 2, 2026, and some sellers of enhanced safety categories or specified products may no longer be covered by the existing sales threshold.
What are the key facts?
- 1Amazon plans to update commercial liability insurance requirements from November 2, 2026
- 2The existing rules generally use monthly sales above $10,000 as the insurance trigger
- 3The existing rules require sellers to purchase and maintain commercial liability insurance within 30 days
- 4Minimum insurance coverage is $1,000,000 per occurrence and in the aggregate
- 5The new rules will expand to some enhanced safety categories or specified products
What happened?
An announcement on the Amazon Seller Central seller forums says that Amazon plans to update its commercial liability insurance requirements from November 2, 2026. Under the existing rules, sellers generally must purchase and continuously maintain commercial liability insurance within 30 days after their monthly sales on Amazon.com exceed $10,000, with minimum coverage of $1,000,000 per occurrence and in the aggregate. After the rule change, the scope for some enhanced safety categories or specified products will expand, so the actual impact may extend to sellers whose sales have not reached the existing threshold. The products listed in the original announcement include electronics, children’s products, home equipment, personal care products, products with electrical power, and products that pose a potential risk of personal injury. Cross-border sellers handling these products need to confirm in advance whether insurers will cover their business entity, products, and sales countries, and prepare the policy, insured name, and materials to be submitted to the platform.
What does this mean for cross-border sellers?
From November 2, 2026, Amazon will expand its commercial liability insurance requirements, and some sellers below the existing monthly sales threshold of $10,000 may also need coverage. Stores selling electronics, children’s products, home equipment, personal care products, products with electrical power, or products posing a potential risk of personal injury should verify coverage and submission materials in advance to avoid later compliance issues.
What should sellers do now?
- 1This week, screen Amazon.com store listings for electronics, children’s products, home equipment, personal care products, and products with electrical power; create an affected-product list and record the category, business entity, sales country, and insurance verification status for each product.Listing character checker
- 2This week, contact insurers to verify whether the relevant stores and products are insurable, focusing on the seller entity, product type, and sales country; obtain a written response or quotation and record the verification results for affected products.AI Customer Service
- 3This week, organize the commercial liability insurance submission package, separately preparing the policy, insured name, and platform submission materials; check each item against the $1,000,000 per-occurrence and aggregate coverage requirement and create a list of missing items.