Amazon Updates Commercial Liability Insurance Requirements
Amazon will expand mandatory commercial liability insurance requirements from November 2, 2026, to sellers in enhanced safety compliance categories; new policies for sellers registered in mainland China must be obtained through AIA.
What are the key facts?
- 1Amazon.com will update commercial liability insurance requirements on November 2, 2026
- 2Sellers in enhanced safety compliance categories must maintain insurance regardless of sales
- 3Affected categories include children’s products, cosmetics, edible or ingestible products, and lithium battery products
- 4New insurance policies submitted by sellers registered in mainland China must be obtained through AIA
- 5Failure to submit insurance proof may result in affected listings being deactivated
What happened?
Amazon announced that Amazon.com will update its commercial liability insurance requirements effective November 2, 2026. Previously, sellers generally had to obtain commercial liability insurance within 30 days after their monthly Amazon.com sales exceeded $10,000, with coverage of at least $1 million per occurrence and in the aggregate. The new rules add another mandatory category: sellers listing products in Amazon’s “enhanced safety compliance requirements” categories must maintain compliant commercial liability insurance regardless of whether their monthly sales reach $10,000. Affected categories include, but are not limited to, children’s products, cosmetics, edible or ingestible products, and lithium battery products. The rules apply to both new and existing listings. In addition, beginning November 2, newly submitted insurance policies from sellers registered in mainland China must be obtained through Amazon Insurance Accelerator (AIA). Previously submitted third-party policies that remain valid may continue to be used until expiration, but renewals must be moved to AIA. Failure to submit the required proof may result in the deactivation of the affected listings.
What does this mean for cross-border sellers?
From November 2, 2026, sellers of children’s products, cosmetics, edible or ingestible products, and lithium battery products must maintain compliant commercial liability insurance regardless of whether sales reach $10,000. Newly submitted policies for sellers registered in mainland China must also be obtained through AIA. Failure to submit proof may lead to the deactivation of new and existing listings, so review policy coverage and listing status in advance.
What should sellers do now?
- 1This week, screen children’s products, cosmetics, edible or ingestible products, and lithium battery products in your Amazon.com store and create an insurance register for new and existing listings. Mark the category, policy status, and outstanding materials for each listing to ensure no affected listings are missed.Listing character checker
- 2This week, check the validity periods of existing third-party policies for stores registered in mainland China and switch new policies after November 2, 2026, to Amazon Insurance Accelerator (AIA). Prepare a renewal list and record the submission route and status for every affected listing.Profit calculator
- 3Use a profit calculator to assess the impact of insurance costs on the gross margins of children’s products, cosmetics, edible or ingestible products, and lithium battery products. Update the pricing review sheet by store and SKU, and record the adjustment decision for each item to avoid continuing loss-making sales after costs change.