Amazon Commercial Liability Insurance Requirements 2026: What Sellers Need to Know

Selling less than $10,000 a month on Amazon? You may still need $1 million in liability insurance.

As of November 2, 2026, Amazon's expanded commercial liability insurance requirements are officially in effect. The changes affect sellers offering products in certain enhanced-safety categories, regardless of monthly sales volume, and introduce additional insurance requirements for sellers based in mainland China.

For some Amazon sellers, this means that previously acceptable insurance arrangements may need to be reviewed. Others who never reached Amazon's traditional monthly sales threshold may now be required to maintain coverage.

Although these changes were announced before November 2, their effective date marks an important compliance deadline for affected sellers.

Understanding how the updated requirements apply to your business can help you address potential coverage gaps, respond to rejected insurance documentation, and reduce the risk of disruptions to your Amazon operations.

What Changed Under Amazon's November 2026 Insurance Requirements?

Historically, Amazon's commercial liability insurance requirements generally applied to sellers whose gross sales proceeds exceeded $10,000 in any given month on Amazon.com. Those sellers were required to obtain qualifying commercial liability insurance within 30 days.

That existing threshold has not disappeared. Instead, Amazon has expanded its requirements to include certain products that carry additional safety considerations.

Effective November 2, 2026, sellers offering products in categories subject to enhanced safety listing requirements must maintain at least $1 million in commercial liability insurance coverage per occurrence and in the aggregate, even if their monthly sales never exceed $10,000.

The expanded requirement also applies to existing listings. Sellers cannot assume that products listed before November 2 are exempt simply because they were previously approved for sale.

Amazon has also changed how mainland China-based sellers must obtain newly submitted insurance policies. These sellers are now required to purchase qualifying coverage through Amazon Insurance Accelerator, subject to a transition exception for certain existing policies.

Together, these changes place greater emphasis on product-specific insurance compliance rather than relying exclusively on sales volume.

Which Amazon Sellers Are Affected by the Expanded Insurance Requirements?

One of the most significant aspects of Amazon's updated policy is its impact on smaller sellers.

Previously, a seller generating $5,000 in monthly revenue might not have been required to maintain commercial liability insurance under Amazon's general sales-based threshold. Under the expanded rules, that same seller may now need coverage depending on the products offered.

Amazon identifies categories involving enhanced safety considerations, including children's products, cosmetics, ingestible products, and products containing lithium batteries.

These examples are not necessarily an exhaustive list of affected products. Sellers should review the applicable requirements in Seller Central rather than assuming that an entire category is either covered or exempt.

Consider a seller offering skincare products through Amazon. Even if the business generates less than $10,000 in monthly sales, certain products may fall within the enhanced-safety requirements and trigger the obligation to maintain qualifying liability insurance.

The same concern may arise for sellers offering products containing lithium batteries or children's products. For related product-compliance issues, see our guide to Amazon restricted product violations.

Because the requirements extend to existing listings, sellers should review their current catalogs alongside their insurance policies to determine whether their coverage satisfies Amazon's updated standards.

How Much Liability Insurance Does Amazon Require?

Affected sellers must maintain at least $1 million in coverage per occurrence and $1 million in the aggregate.

The per-occurrence limit refers to the amount of coverage available for a single covered incident, while the aggregate limit generally represents the total amount available under the policy during the applicable coverage period.

However, meeting the dollar threshold does not automatically establish compliance with Amazon's commercial liability insurance requirements.

A policy may provide $1 million in coverage while excluding particular products or activities associated with the seller's business. Sellers should therefore review not only the stated coverage limits but also the policy's covered products, exclusions, and other applicable terms.

This distinction becomes particularly important when Amazon rejects an insurance submission despite the seller having an active policy.

New Amazon Insurance Accelerator Requirements for Mainland China Sellers

Amazon's November 2026 update also introduces a significant change for sellers based in mainland China.

Under the updated requirements, these sellers must obtain newly submitted commercial liability insurance policies through Amazon Insurance Accelerator (AIA), a program connecting sellers with participating insurance providers.

Previously, mainland China-based sellers could submit qualifying policies obtained from third-party insurers outside the program. That option is now restricted for newly submitted policies.

However, Amazon has provided a transition exception for certain existing coverage.

Can Mainland China Sellers Continue Using Existing Insurance Policies?

Mainland China-based sellers who submitted compliant third-party insurance policies before November 2, 2026, may continue using those policies until they expire.

For example, if a seller submitted a qualifying policy in October 2026 and the policy remains valid through March 2027, the seller may continue relying on that coverage until its expiration, assuming it remains compliant with Amazon's other applicable requirements.

Once the policy expires, replacement coverage must be obtained through Amazon Insurance Accelerator.

This distinction matters because a seller with an existing compliant policy should not necessarily have to replace that policy immediately solely because the November 2 effective date has passed.

Sellers should preserve documentation establishing when the policy was submitted, its expiration date, and any confirmation received from Amazon.

What Happens If Amazon Rejects Your Commercial Liability Insurance?

An Amazon insurance policy rejection can create uncertainty, particularly when the seller believes the policy already meets the required coverage limits.

However, a rejection does not necessarily mean that the seller lacks insurance or must immediately purchase a replacement policy.

Amazon may reject submitted documentation for several reasons, including insufficient coverage, exclusions affecting the products being sold, inconsistent business information, expired documents, or failure to follow an applicable submission requirement.

For mainland China-based sellers, the Insurance Accelerator requirement may also affect whether a newly submitted policy is accepted.

The appropriate response depends on the specific deficiency identified by Amazon.

Understanding the Reason for an Insurance Rejection

Before obtaining replacement coverage, sellers should carefully review the rejection notice and compare it against Amazon's applicable insurance criteria.

For example, if Amazon indicates that a policy does not cover a particular product category, the seller should review the underlying policy and any covered-product schedules to determine whether the exclusion actually applies.

If Amazon rejects a policy without identifying a clear deficiency, the seller should consider requesting clarification about the specific requirement the submitted coverage allegedly fails to satisfy.

It is also important to maintain a complete record of the insurance submission, including the policy, certificate of insurance, product coverage schedule, exclusions, expiration date, submission timestamp, and Amazon's response.

These records may help establish whether the seller submitted compliant coverage, identify documentation discrepancies, or support further communication with Amazon.

Repeatedly submitting the same documents without understanding the rejection may prolong the issue rather than resolve it.

Can Failure to Meet Amazon's Insurance Requirements Affect Your Seller Account?

Failure to comply with Amazon's commercial liability insurance requirements may result in compliance-related consequences, including potential restrictions on selling privileges.

However, sellers should distinguish between an insurance documentation rejection, a listing restriction, and an actual seller account deactivation.

These situations may require different responses.

For example, a seller whose certificate of insurance has been rejected may need to provide corrected documentation or clarify the scope of existing coverage. A seller whose account has been deactivated may need to address a broader compliance issue through Amazon's applicable reinstatement process.

Understanding the exact enforcement action is essential before determining how to respond.

When Does an Amazon Plan of Action Become Relevant?

If an insurance-related compliance issue results in an account deactivation, Amazon may require the seller to address the underlying problem before selling privileges can be restored.

Depending on the circumstances and Amazon's instructions, this may involve submitting documentation, explaining corrective measures, or preparing a Plan of Action.

A Plan of Action generally explains the root cause of the compliance issue, the corrective steps taken, and the procedures implemented to prevent recurrence.

However, not every insurance rejection requires a traditional written Plan of Action. Sellers should follow the specific instructions provided by Amazon rather than submitting a generic appeal.

For additional guidance, read our article, Amazon Plan of Action: How to Appeal a Seller Account Deactivation in 2026.

How Amazon Sellers Can Prepare for the Expanded Insurance Requirements

Amazon sellers should approach insurance compliance as an ongoing responsibility rather than a one-time requirement triggered by sales volume.

For businesses offering products in enhanced-safety categories, the first priority is determining whether existing insurance policies provide the coverage Amazon now requires.

This involves reviewing the products offered, the applicable policy limits, and any exclusions that could affect coverage.

Sellers should also monitor their policy expiration dates and maintain organized records of insurance submissions and Amazon correspondence. For mainland China-based sellers, this is particularly important when determining whether an existing third-party policy qualifies for the transition exception.

Businesses managing large product catalogs may benefit from maintaining a product-by-product record of applicable insurance coverage. Doing so can make it easier to identify potential coverage gaps as new products are added or Amazon's requirements change.

Sellers should also regularly review their Account Health dashboard and relevant Seller Central notifications for outstanding compliance requests.

The goal is to identify and address potential insurance issues before they interfere with selling operations.

Frequently Asked Questions About Amazon's 2026 Liability Insurance Requirements

Do I need Amazon liability insurance if I make less than $10,000 per month?

Possibly. As of November 2, 2026, sellers offering products subject to enhanced safety listing requirements must maintain qualifying commercial liability insurance regardless of monthly sales volume. Sellers should review whether their products fall within the affected categories.

Do the new insurance requirements apply to existing Amazon listings?

Yes. Amazon's expanded requirements apply to both new and existing listings in affected enhanced-safety categories. Products listed before November 2, 2026, are not automatically exempt.

Can mainland China sellers continue using third-party insurance?

Mainland China-based sellers may continue using compliant third-party policies submitted before November 2, 2026, until those policies expire. Newly submitted policies must be obtained through Amazon Insurance Accelerator.

What should I do if Amazon rejects my insurance policy?

Review the rejection notice and compare the stated reason against the applicable insurance requirements. If the reason is unclear, request a specific deficiency explanation and preserve the relevant insurance documents and submission records.

Can Amazon suspend my seller account for failing to provide liability insurance?

Failure to satisfy Amazon's insurance requirements may result in restrictions on selling privileges. The appropriate response depends on whether Amazon has rejected documentation, restricted listings, or deactivated the seller account.

Protect Your Amazon Business from Insurance Compliance Issues

Amazon's expanded commercial liability insurance requirements represent an important compliance change for sellers offering products in enhanced-safety categories.

For some businesses, particularly smaller sellers and those based in mainland China, the November 2, 2026 effective date introduces obligations that may not have applied to their previous insurance arrangements.

Sellers should review their existing coverage, confirm that their products are properly insured, and preserve documentation demonstrating compliance with Amazon's requirements.

If Amazon has rejected your insurance documentation or taken action against your selling privileges, understanding the precise reason for that action is an important first step toward resolving the issue.

Stockman & Poropat, PLLC represents Amazon sellers in account suspensions, policy violations, and other e-commerce compliance disputes.

If your business is facing an Amazon insurance-related compliance issue, listing restriction, or account deactivation, contact Stockman & Poropat to discuss your circumstances and potential next steps.

Entrepreneurs for Entrepreneurs.

Source: Amazon Seller Forums — Commercial Liability Insurance Requirements Effective November 2, 2026

This article is for general informational purposes and does not constitute legal or insurance advice. Sellers should consult Amazon's current policies and qualified professionals regarding their individual circumstances.