Best Insurance for Amazon Sellers in 2026

Amazon requires third-party sellers to carry commercial general liability insurance once they reach $10,000 in gross proceeds in any single month. This requirement applies to all product categories and all seller account types. Once triggered, you must provide proof of insurance within 30 days or risk suspension of your selling privileges. Understanding and meeting this requirement is essential for maintaining your Amazon business.

Amazon's specific insurance requirements include a commercial general liability policy with at least $1 million per occurrence and $1 million aggregate. The policy must name Amazon.com Services LLC and its affiliates and assigns as additional insureds. The policy must cover all products you sell on the platform, including product liability, bodily injury, and property damage. The insurer must have a financial rating of AM Best A- or better and be licensed in your state of operation.

Beyond Amazon's mandate, product liability insurance is genuinely important for e-commerce sellers. If a product you sell injures a customer or damages their property, you can be held liable regardless of whether you manufactured the product. As the seller of record, you are part of the distribution chain and can face lawsuits from injured consumers. A single product liability claim can easily exceed $100,000, and without insurance, that cost comes directly from your business and personal assets.

Commercial general liability insurance with product liability coverage is the core policy every Amazon seller needs. This policy covers claims of bodily injury and property damage caused by the products you sell. It also covers general business liability including advertising injury and personal injury claims. Make sure your policy specifically includes product liability coverage, as some general liability policies exclude or limit this coverage.

Product recall coverage is highly recommended for sellers of consumable products, electronics, children's items, or any product category with elevated recall risk. If one of your products is recalled due to a safety issue, product recall insurance covers the cost of notifying customers, retrieving the product, disposing of recalled inventory, and managing the reputational fallout.

Commercial property insurance protects your inventory, whether stored in your own warehouse, a third-party logistics facility, or other storage locations. Standard property policies may not cover inventory stored at third-party locations, so make sure your policy includes coverage for goods in transit and goods at various locations.

Cyber liability insurance is important for Amazon sellers who maintain their own e-commerce websites alongside Amazon, collect customer data, or use digital tools that access sensitive information. A data breach can result in notification costs, regulatory penalties, and customer lawsuits.

Inland marine or cargo insurance protects your products while they are being shipped from manufacturers, between warehouses, or to fulfillment centers. Goods in transit are vulnerable to damage, theft, and loss, and standard property policies often do not cover these scenarios.

Insurance costs for Amazon sellers vary based on the type and volume of products sold, annual revenue, and risk profile. Most small to mid-size Amazon sellers can expect to pay $500 to $2,500 per year for a general liability policy with product liability that meets Amazon's requirements. This is a modest cost relative to the protection it provides and the revenue it allows you to continue generating on the platform.

Product category significantly affects pricing. Sellers of low-risk products like books, clothing, and home decor pay less than sellers of higher-risk products like electronics, supplements, children's toys, or items that come into contact with food or skin. Products that are imported, particularly from manufacturers without established quality control systems, may also face higher premiums due to the elevated risk of defects.

Annual revenue is the other primary rating factor. As your sales grow, your premium increases proportionally because higher sales volume means more products in consumers' hands and more opportunities for claims. However, the per-unit cost of insurance decreases as volume increases, making insurance more affordable on a percentage-of-revenue basis for larger sellers.

Adding the Amazon additional insured endorsement typically does not increase your premium significantly, as most carriers include this endorsement at no extra charge or for a nominal fee of $25 to $50. This endorsement is required by Amazon and simply extends your liability coverage to include Amazon for claims arising from your products sold on their platform.

To submit your insurance to Amazon, you need a certificate of insurance (COI) that meets all of Amazon's specifications. The COI must show commercial general liability with product liability, minimum limits of $1 million per occurrence and $1 million aggregate, Amazon.com Services LLC listed as an additional insured, and your policy must be issued by a carrier rated AM Best A- or better.

Upload your COI through Seller Central under the insurance section. Amazon reviews submitted certificates and will contact you if any information is missing or does not meet their requirements. Allow a few business days for review, and do not wait until the last day of your 30-day window to submit.

Make sure your policy covers all product categories you sell. If you expand into new categories, verify that your policy still provides adequate coverage. Some product categories, particularly supplements, electronics, and children's products, may require endorsements or policy modifications to ensure coverage.

Renew your policy before it expires and upload the renewed COI to Seller Central. An expired insurance certificate can trigger account suspension, which interrupts your sales and can take days or weeks to resolve. Set calendar reminders for your policy renewal date and submit updated documentation proactively.

CPK Insurance works with carriers that understand the e-commerce and Amazon seller market. We can help you find a policy that meets Amazon's requirements, covers your specific product categories, and fits your budget. Our team is familiar with Amazon's insurance verification process and can ensure your COI includes all required information.

To get a quote, provide your annual Amazon sales revenue, the product categories you sell, whether you manufacture or source your products, your storage and fulfillment arrangement, and any previous insurance claims. We can typically provide quotes within one business day and bind coverage within 24 to 48 hours, getting you compliant with Amazon's requirements quickly.

Do not risk your Amazon selling privileges by operating without insurance. The cost of coverage is minimal compared to the revenue at stake, and the protection against product liability claims is invaluable. Contact CPK Insurance today for an Amazon seller insurance quote.