AMAZON Sellers Insurance requirements

According to Amazon’s website, “under section 9 of the Amazon Services Business Solutions Agreement, you are required to obtain and maintain commercial liability insurance within 30 days after exceeding $10,000 in gross proceeds in sales in one month on Amazon.com, or if otherwise requested by us.”

You may purchase either commercial general, excess, or umbrella liability insurance. When you decide on an insurance, your policy should cover all products you list for sale on Amazon.

Insurance policy criteria

Your commercial liability insurance policy must meet all of the following criteria:

  1. The insurance policy type can be either commercial general, umbrella, or excess liability and be occurrence based, except for certain product categories.
  2. The policy limit must be at least $1 million per occurrence and in aggregate, and cover liabilities caused by or occurring in conjunction with your business operations, including products, products/completed operations and bodily injury;
  3. The deductible for any policy(ies) must not be greater than $10,000 and any deductible amount must be listed on the certificate(s) of insurance;
  4. The policy must cover all sales from products you have listed on the Amazon website;
  5. The policy must name “Amazon.com Services LLC and its affiliates and assignees” as additional insureds;
  6. Your insured name must match the “legal entity” name you provided to Amazon (to view your legal entity name.
  7. Your insurance provider must have global claim handling capability and a financial rating of S&P A- and/or AM BEST A- or better.
  8. The policy must be completed in its entirety and signed; and
  9. Carrier will give Amazon at least 30 days’ notice of cancellation, modification or nonrenewal.

Required documents

Amazon may ask you to provide a certificate of insurance (COI) within 30 days of exceeding $10,000 in gross proceeds in sales on Amazon.com, or if otherwise requested by us. The insurance company issues a Certificate of Insurance once you purchase a policy. This document details the property and persons covered, the amount of coverage, and any exclusions or deductibles. This document can be in .pdf, .doc, or .docx format. If needed, we may request additional documents such as a complete copy of your insurance policy, policy purchase invoice or an exclusion endorsement document. We ask that you review your certificates of insurance and ensure the policies are up-to-date and readily available.

How can I obtain insurance?

If you are looking for a new policy, choose Blue Paddle Insurance Agency LLC to get a policy that meets Amazon’s requirements above. 

How much will insurance cost?

The cost of insurance varies depending on a list of factors, for example, the type of products you sell, the expected sales volume, and the insurance company you choose. Policies start as low as $200 per year

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