Amazon is the world’s largest online marketplace, and with that comes serious responsibility for sellers. Once your store crosses the $10,000/month threshold, understanding Amazon US insurance rules becomes essential to avoid disruption.

Amazon mandates that professional sellers who meet the revenue criteria carry a commercial general liability (CGL) policy. This rule is rooted in Amazon’s Business Solutions Agreement and aims to protect both the platform and its consumers.

Any Amazon seller earning more than $10,000 in monthly sales is obligated to obtain coverage. This includes FBA, FBM, and private-label sellers. Even drop shippers are not exempt if their products cause harm.

A robust Amazon product liability insurance policy should include bodily injury, property damage, legal defense costs, and personal and advertising injury.

Failure to submit proof of insurance can lead to account suspension, removal of product listings, or even a permanent ban. Amazon uses automated systems to detect non-compliant accounts.

Premiums vary based on your product type, sales volume, and claims history. On average, expect to pay between $500 and $2,000 per year for compliant coverage.

Choose insurers with experience in e-commerce and understand the complexities of dealing with Amazon.

To stay compliant, get a quote and bind your policy, list Amazon.com Services LLC as additional insured, upload your certificate of insurance to Seller Central, and monitor renewal dates and compliance updates.

Understanding Amazon US insurance rules ensures you stay compliant, avoid disruptions, and safeguard your growing business. Take action before Amazon flags your account.

Read about why product liability is important for high volume sellers here.