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What Are Amazon Insurance Requirements?
Amazon requires its Pro Merchants and sellers with over $10,000 in sales a month to have small business insurance.1 But even if you or your business don’t meet the insurance requirements, getting business insurance is important. It can help protect Amazon sellers from many risks. Without it, you may have to cover claims out of pocket.
Get a small business insurance quote today to see if we can help protect you while selling on Amazon.
Why Do Sellers Need Amazon Liability Insurance?
Having Amazon liability insurance helps protect sellers from costly accidents. For example, it can help your business if someone sues your company after a product they purchased on Amazon malfunctions and damages their property. Without the right coverage, you’d have to pay out of pocket to cover the claim or lawsuit.
Pro Merchants and sellers with $10,000 in sales a month must comply with Amazon’s insurance requirements within 30 days and carry:2
Each policy should have a minimum of $1 million per occurrence and in aggregate limit.3
Liability Insurance Coverage for Amazon Sellers
Liability insurance coverage can help protect Amazon sellers from claims that it caused bodily injury or property damage. Certain liability insurance policies may also have the other types of coverage that Amazon requires. For example, you may be wondering, “Does Amazon require product liability insurance?” The good news is that a general liability insurance policy includes product liability insurance and products and completed operations coverage.
Because small businesses face different risks during normal operations, you may find you need more coverage. Other common types of small business insurance include:
- Commercial property insurance to help protect your owned or rented building, tools, equipment and inventory that you need to operate.
- Workers’ compensation insurance, which gives benefits to your employees if they get a work-related injury or illness.
- Commercial auto insurance to help protect you and your employees on the road if you drive a company-owned vehicle for business.
Be aware that Amazon requires sellers to name Amazon and its assignees as additional insureds.4
General Liability Insurance
General liability insurance helps cover claims that your business caused:
- Bodily injury
- Property damage to someone else’s belongings
- Personal injury, like libel or slander
Commercial Auto Insurance
Commercial auto insurance to help cover claims or bodily injury or property damage due to a car accident you or your employees were involved in while driving a business-owned vehicle.
Workers’ Compensation Insurance
Workers’ compensation insurance helps your employees recover from a work-related injury or illness. It can help cover their:
- Treatment costs
- Medical expenses
- Lost wages
Cyber Liability Insurance
If your business sells products on Amazon, it’s likely that you collect personally identifiable information (PII). This can include customer:
- Names
- Addresses
- Payment information
If this data gets lost or stolen, you’ll want data breach insurance, which some insurance companies call cyber insurance.
Commercial Umbrella Insurance
Commercial umbrella insurance extends the limits of certain liability policies. So, if there’s an expensive claim that exceeds your general liability limit, this coverage can help pay the difference.
What Does Amazon Seller Insurance Cost?
Amazon seller insurance costs vary and depend on the type of coverage you’re getting. Our general liability insurance customers paid an average of $141 a month for a Business Owner's Policy (BOP).**
Be aware that your business’ specific cost for Amazon seller insurance can be impacted by:
- Claims history
- Type of business
- Number of employees
The best way to find out how much Amazon seller insurance will cost you is to get a quote.
How To Get Amazon Liability Insurance
You can get a quote to see if you can get Amazon liability insurance from The Hartford. We’re an experienced insurance company with over 200 years of experience. Our specialists can work with you to see if we have the coverage that your business needs. Get a quote today and see if we can help protect you.
Last Updated: April 11, 2025
1,2,3 Amazon, “Amazon Services Business Solutions Agreement”
** Costs, premiums, and coverages mentioned are estimates and are not guaranteed. Actual cost, premium, and coverage are determined at the time of quote or issue and are specific to an individual risk. Premiums are based on information provided to The Hartford, including, but not limited to, underwriting and rating criteria. All examples included on this website or in an advertisement are intended for informational purposes only and are not an offer or a guarantee of premium or coverage. Coverage and products described are subject to the terms and conditions found in the policy contract. Any educational information provided about available coverages does not modify the policy language or imply that any claim is covered. Products are not available in all states or for all businesses.