Check the current insurance requirement in Seller Central rather than relying on a number you read online; Amazon sets the threshold, the limit and the wording, and it has changed them before. Whatever the requirement says, the risk is real for any seller: in a product injury claim, California generally lets the injured person pursue everyone in the chain of distribution. If you import or sell under your own brand, insurers will usually treat you as the manufacturer. And your homeowners policy will not help — business activity is generally excluded.
What does Amazon actually require?
Amazon’s Business Solutions Agreement, the contract every seller accepts, includes an insurance clause. In broad terms it has required sellers whose sales exceed a set level to carry commercial general liability insurance that includes products-completed operations coverage, with a minimum limit, from an insurer meeting a rating standard, and with Amazon and its affiliates added as additional insureds. Amazon notifies sellers when the requirement applies to them and asks for proof to be uploaded in Seller Central.
I am deliberately not quoting a threshold or a limit here. Amazon sets those terms, has revised them over the years, and can apply them differently by category or marketplace. The current version of the agreement and the notice in your account are the authority; send me what you see there and I will match the policy to it exactly.
Amazon can also ask for insurance in specific categories, for particular programs, or after a complaint, regardless of sales volume.
Why you need it even if Amazon hasn’t asked
A product liability claim does not care about your sales volume. A phone charger that overheats, a toy with a part that comes loose, a supplement that triggers a reaction or a kitchen gadget that cuts someone can all lead to a lawsuit, and defending one costs money whether or not the claim succeeds.
California applies strict product liability to defective products: an injured person generally does not have to prove anyone was careless, only that the product was defective and caused the injury, and they can usually pursue manufacturers, distributors and retailers alike. California courts have even allowed claims against Amazon itself in some fulfilled-by-Amazon situations — which is part of why Amazon wants to be on your policy.
Importers and private label sellers are treated like manufacturers
If you source a product from an overseas factory and sell it under your own brand, an insurer will generally rate you as the manufacturer, not as a reseller. The reason is practical: an injured buyer may have no realistic way to sue a foreign factory, so the claim lands on the U.S. company whose name is on the box.
- You own the product risk. Design, labeling, warnings and instructions are all yours, even if someone else made it.
- Your supplier’s insurance probably won’t protect you. Even when a factory has coverage, getting it to respond for a U.S. claim is uncertain.
- Testing and documentation matter. Underwriters often ask about safety testing, certifications for regulated categories and quality control.
- Reselling a known brand is different. Pure resellers of established brands are generally rated as distributors, and may be able to rely partly on the brand owner’s vendor coverage — but don’t count on it without seeing it.
What the policy needs to include
- Commercial general liabilityBodily injury and property damage, with the products-completed operations hazard included rather than excluded.
- Additional insured endorsementAdding Amazon and its affiliates, worded to match the agreement. A vendors endorsement is the usual form for this.
- Coverage territoryWide enough for where your products are sold and where suits might be brought, especially if you sell on Amazon marketplaces outside the U.S.
- LimitsAt least what Amazon requires, and enough for the products you sell. A commercial umbrella can sit above it.
- Insurer ratingFrom a carrier that meets Amazon’s stated rating standard, or the upload can be rejected.
Some product categories — supplements, ingestibles, lithium batteries and e-mobility, children’s products, cosmetics — are harder to place, and may need a specialty or surplus lines market. Product liability insurance.
Does my homeowners policy cover an Amazon business?
Generally not. Homeowners policies exclude liability arising from business activities, and they usually include only a small limit, if any, for business property kept at home. A product injury claim from something you sold is business liability, so a homeowners policy would generally not respond to it.
Some insurers offer home-business endorsements, but they are typically narrow and often leave out products coverage entirely. A seller with inventory in the garage is usually better served by a business policy designed for it. Home-based business coverage.
What product liability does not cover
- Recalls. The cost of pulling products from the market is generally excluded from general liability and needs separate product recall coverage.
- The product itself. Replacing or refunding a defective item is generally not covered; injury and damage it causes to people and other property is.
- Your inventory. Stock in your garage, a 3PL warehouse or in transit needs property or inland marine coverage. Inventory held in Amazon fulfillment centers is subject to Amazon’s own policies.
- Intellectual property disputes. Patent and trademark infringement claims are usually excluded.
- Data and account problems. A breach of customer data or a hacked seller account points to cyber coverage.
What to have ready for a quote
- Your products: what you sell, by category, with links to the listings.
- Your role: manufacturer, importer, private label, or reseller of other brands.
- Sales: annual and projected gross sales, by channel and by country.
- Suppliers: where products are made, and any testing or certification you hold.
- Amazon’s notice: the requirement as it appears in your Seller Central account.
- Claims: any injury complaints, returns for safety reasons or past claims.
Common questions
Does Amazon require product liability insurance?
Amazon’s seller agreement can require commercial general liability insurance that includes products coverage once a seller exceeds a sales threshold, with Amazon named as an additional insured. Check the current requirement in Seller Central, since Amazon sets and revises the terms.
Is product liability insurance the same as general liability?
Products coverage is usually part of a commercial general liability policy, under the products-completed operations hazard. Some policies exclude or limit it, so a seller should confirm it is included.
I sell private label products made overseas. Am I the manufacturer?
For insurance purposes you are usually treated like one. Insurers generally rate importers and private label sellers as manufacturers, because an injured buyer may have no practical way to reach the foreign factory.
Will my homeowners insurance cover my Amazon business?
Generally not. Homeowners policies exclude business liability and usually provide little or no coverage for business inventory kept at home.
How do I add Amazon as an additional insured?
By endorsement on your general liability policy, worded to match Amazon’s requirement. Your broker then issues a certificate showing it, which you upload in Seller Central.
General information about insurance for Amazon and online sellers as of October 2026, not legal advice. Amazon sets and changes its own insurance requirements; read the current version of your seller agreement. Coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.