Amazon $1M Liability Insurance Rule: Who Needs It (2026)
Since November 2, 2026, Amazon requires $1 million in liability insurance for sellers with products in its enhanced safety categories, no matter how little they sell. The older $10,000 monthly sales trigger still applies to everyone else. Mainland China-based sellers must also buy any new policy through the Amazon Insurance Accelerator.
Amazon's own help pages sit behind a Seller Central login, so this guide relies on trade and seller-community reports of Amazon's September 3 notice. Confirm the details for your ASINs on the Business Insurance page in your account.
Key takeaways
- The rule took effect November 2, 2026, with limits of $1 million per occurrence and $1 million in aggregate.
- Enhanced safety categories have no sales threshold. Other sellers still need cover within 30 days of passing $10,000 in gross proceeds in a month.
- Seller Essentials counted 11 categories on Amazon's list as of September 4, 2026. Amazon says the list is not exhaustive.
- Sellers report a 45-day window from Amazon's email to submit proof, after which affected listings can be deactivated. Treat that window as unconfirmed.
- Reported pricing runs from $26 a month for the smallest sellers to $2,200 a year for sellers with $500,000 to $1 million in sales.
What changed with Amazon's liability insurance requirement?
Amazon posted the update on the US Seller Forums on September 3, 2026, according to PPC Land's November 2 report on the rule. It adds two triggers to the insurance terms already in the Amazon Services Business Solutions Agreement.
- Category trigger: sellers with products in enhanced safety listing categories need $1 million of commercial liability cover regardless of sales volume. It applies to new and existing listings.
- China-based seller trigger: from November 2, Amazon rejects newly submitted policies from Mainland China-based sellers unless they came through the Amazon Insurance Accelerator. A valid outside policy submitted before November 2 stays usable until it expires.
Everyone else keeps the earlier rule. Once gross proceeds on Amazon.com pass $10,000 in one month, you have 30 days to provide proof of cover, or sooner if Amazon asks. The table shows the before and after.
| Item | Before November 2 | From November 2 |
|---|---|---|
| Trigger for safety categories | $10,000 gross proceeds in a month | Any sales volume |
| Coverage limits | $1M per occurrence and aggregate | Unchanged |
| Other sellers | $10,000 monthly trigger, 30 days to comply | Unchanged |
| New policies from China-based sellers | Any compliant carrier | Must come through the Amazon Insurance Accelerator |
The practical effect: a seller moving $2,000 a month of supplements or toys was outside the old rule and is inside the new one.
Insurance gaps tend to surface the way other compliance gaps do, through Seller Central notices. Our guide to the Amazon account suspension and reinstatement plan shows how to respond if a notice turns into a listing or account problem.
Which categories need $1M of liability cover?
Amazon names children's products, cosmetic and ingestible products, and lithium battery products, and says the list includes but is not limited to those. Seller Essentials copied Amazon's category page on September 4, 2026 and counted 11 categories. Falcon West reports that Amazon enforces at the ASIN level.
| Category | Examples on Amazon's list |
|---|---|
| Children's products | Car seats, toys, infant sleep products, play yards |
| Consumable and ingestible | Dietary supplements, ingestible OTC medication, eye drops, cosmetics |
| Fire-related products | Fire extinguishers, smoke and carbon monoxide alarms |
| General household devices | Immersion water heaters, small kitchen appliances |
| Home medical devices | Walkers and rollators, mobility equipment, home respiratory supplies |
| Lithium battery products | E-bikes, scooters, lithium batteries, portable power supplies |
| Outdoor power and heating | Pressure washers, portable generators, gas and propane heaters |
| Personal safety equipment | Climbing and fall-protection harnesses, bike, sports and construction helmets |
| Sleep products | Mattresses, adult portable bed rails |
| Transport-related products | Auto and motorcycle tires |
| Water and marine safety | Life jackets, pool alarms, barriers, covers and gates |
Many private-label brands in kitchen, supplements and e-mobility sit in these categories at low volume. Check your ASINs against the list on the Business Insurance page in Seller Central. Our walkthrough of Amazon gated category approval covers the other compliance checks that often sit beside this one.
What does the insurance policy have to say?
PPC Land summarized Amazon's 13 policy criteria. These are the ones that matter most when you review a certificate of insurance.
- Limits of at least $1 million per occurrence and in aggregate, written as commercial general, umbrella or excess liability that covers products and bodily injury.
- Occurrence basis. Claims-made cover is allowed only through an exception for certain categories when an occurrence policy cannot be bought.
- A deductible of $10,000 or less, shown on the certificate.
- Cover for all sales of all products listed on Amazon.com, not only the regulated ones.
- Amazon.com Services LLC and its affiliates and assignees named as additional insureds.
- An insured name that matches the legal entity on the seller account. Single-member LLCs may also use a trade name.
- No sunset clause, plus at least 30 days' notice to Amazon of cancellation, modification or non-renewal.
- An insurer with global claim handling and an S&P or AM Best rating of A- or better.
The entity-name match deserves a check before you buy. Brands that sell through a separate holding company or a manufacturer's account should confirm which legal entity holds the Seller Central account, a point we cover in our Amazon agency guide for manufacturers selling direct.
How much does Amazon seller liability insurance cost?
Amazon publishes no price. The figures below come from a broker page and trade blogs, so read them as ranges, not quotes.
| Source | Reported cost | Seller profile |
|---|---|---|
| Assureful (broker page, updated Sept 8, 2026) | $26 to $45 per month | Under $50K a year in sales |
| Assureful | $45 to $95 per month | $50K to $500K a year |
| Assureful | $95 to $450 per month | $500K to $5M a year |
| EcomCrew, via PPC Land | $837 to $2,200 per year | $500K to $1M in revenue, quotes gathered before the change |
| Seller Essentials, Velocity Sellers | About $50 to $200 per month | Small ecommerce sellers, author estimates |
Illustrative math: a seller with $750,000 in annual sales who pays $1,400 a year spends about 0.19% of revenue on cover ($1,400 divided by $750,000). Across the reported $837 to $2,200 quotes for $500,000 to $1 million in sales, the share runs from roughly 0.08% to 0.44%. Seller Shorts also reports that one insurer refused China-made products, so request quotes early and ask about product exclusions.
What happens if you miss the deadline?
The sources we could read do not quote Amazon on penalties. Seller Essentials and Velocity Sellers report that Amazon emails affected sellers, gives 45 days to submit proof, and can then deactivate listings in enhanced safety categories until proof arrives. PPC Land cites a seller thread describing an email that asked for proof by November 2. Falcon West says the first action is listing-level rather than an account suspension. Read your own Seller Central messages for your date.
What should Amazon sellers do now?
- Open Seller Central, then Settings, Account Info, Business Insurance. Read your insurance status and Amazon's current category list.
- Map every active ASIN to the categories, including bundles and accessories. Flag any you are unsure about.
- Check any existing policy against the criteria above: limits, occurrence basis, deductible, additional insured wording and entity name.
- Collect at least two quotes. China-based sellers buying a new policy should use the Amazon Insurance Accelerator quote tool. Ask each carrier whether your product types are excluded.
- Upload the certificate on the Business Insurance page and keep a screenshot of the confirmation.
- Add the premium to your unit economics next to the 2026 FBA peak fulfillment fees. Illustrative: a $1,400 premium spread over 20,000 units adds $0.07 per unit.
- If you cannot find a compliant policy, ask Amazon for a case-by-case exception. PPC Land reports that Amazon allows them for sellers unable to secure a qualifying policy, with no stated timeline.
Amazon insurance requirement FAQ
Do I need liability insurance if I sell under $10,000 a month?
Yes, if any listing sits in an enhanced safety category. Outside those categories, the $10,000 monthly trigger still applies.
Do I have to use the Amazon Insurance Accelerator?
Only Mainland China-based sellers buying a new policy must. Seller Essentials and Falcon West both describe it as optional for other sellers.
Does the rule apply outside Amazon.com?
PPC Land says the notice covers the Amazon.com US store. Check Seller Central if you sell in other marketplaces.
Can I use a claims-made policy?
The default is occurrence-based. PPC Land reports a narrow exception for certain categories where an occurrence policy cannot be bought.
Bottom line
The rule turns insurance from a sales-volume question into a product question. If any ASIN sits in an enhanced safety category, plan for a compliant $1 million policy on file now, and verify the specifics in Seller Central instead of relying on third-party summaries, including this one.
Insurance, margin math and category compliance affect each other, and a short call can show which of your ASINs are exposed. Schedule a free strategy call with 595 Agency to review your catalog against the 11 categories and fold the premium into your unit economics.
Sources
- PPC Land: Amazon forces $1M cover on small safety-category sellers from November 2 (Nov 2, 2026)
- Seller Essentials: Amazon seller insurance requirements change Nov 2, 2026
- My Amazon Guy: Amazon liability insurance requirements update (Sept 9, 2026)
- Falcon West: Amazon seller insurance requirements 2026 (Sept 16, 2026)
- Velocity Sellers: Amazon's November 2 insurance rule (Sept 14, 2026)
- Assureful: Amazon seller insurance (page updated Sept 8, 2026)
- Seller Shorts: Amazon insurance rules hit Nov 2 (Sept 10, 2026)
Last updated: November 4, 2026