Amazon is updating its commercial liability insurance policies starting November 2, 2026. Learn about the new category rules, China seller requirements, and how WELL Insurance keeps you compliant. 
Amazon has officially announced upcoming changes to its Commercial Liability Insurance requirements. For thousands of Amazon sellers, maintaining proper coverage is no longer just a best practice—it is an absolute requirement to keep your storefront active and avoid listing suspensions.
Whether you are launching a new private-label brand or running an established e-commerce operation, understanding these policy updates is critical to protecting your business. Here is a clear breakdown of what Amazon’s latest memo means for you, what is changing on November 2, 2026, and how WELL Insurance can help you stay fully compliant without breaking the bank.
What’s Changing? The November 2, 2026 Updates
Historically, Amazon required Commercial General Liability (CGL) insurance within 30 days once a seller exceeded $10,000 in gross proceeds in any single month on Amazon.com, with a minimum coverage limit of $1,000,000 per occurrence and $1,000,000 aggregate.
While that baseline rule remains in effect, Amazon is adding two major updates to protect buyers and shield merchants from financial loss due to product-related incidents:
1. Mandatory Coverage for "Enhanced Safety" Categories (Regardless of Sales Volume)
If you list products in high-risk or regulated safety categories, the $10,000 gross sales threshold no longer applies. You must secure and maintain a compliant $1,000,000 commercial liability insurance policy from day one – even if you have zero sales or are launching a new listing.
Impacted categories include, but are not limited to:
- Children’s Products: Toys, apparel, gear, and nursery items.
- Cosmetics & Ingestible Products: Skincare, beauty formulas, dietary supplements, and consumables.
- Lithium Battery Products: Power banks, electronics, and battery-operated equipment.
Note: This requirement applies retroactively to existing listings as well as all newly added products.
2. New Rules for Mainland China-Based Sellers
Sellers based in Mainland China will now be required to obtain their coverage exclusively through the Amazon Insurance Accelerator (AIA) network.
- Starting November 2, 2026: Newly submitted policies for China-based sellers that are not issued through the AIA program will be automatically rejected.
- Grandfather Clause: If you are a China-based seller with a valid third-party policy submitted before November 2, 2026, you can use it until its natural expiration date. After that, renewal must take place through AIA.
What Stays the Same? The Core Policy Basics
Aside from these two new rules, Amazon’s standard Certificate of Insurance (COI) criteria remain in place:
- Coverage Limits: Minimum of $1,000,000 USD per occurrence and $1,000,000 USD in aggregate.
- Policy Type: Written on an "occurrence basis" (unless specific exceptions apply).
- Additional Insured: Policy must explicitly name "Amazon.com Services LLC and its affiliates and assignees" as additional insureds.
- Insurer Rating: Must be underwritten by a carrier rated A- or better by AM Best or S&P.
What Should You Do Next?
Failing to upload a compliant Certificate of Insurance (COI) can lead to listing removals, withheld funds, or full Seller Central account suspensions. To ensure zero disruption to your business:
- Audit Your Catalog: Check if any of your ASINs fall into high-risk categories like toys, supplements, cosmetics, or lithium-ion devices.
- Check Your Sales Volume: If you are approaching $10K/month in sales across your catalog, get ahead of the 30-day deadline now.
- Verify Your Insurer: Ensure your carrier includes the mandatory Amazon wording, correct additional insured endorsements, and required ratings.
How WELL Insurance Protects Your Amazon Business
Navigating Amazon's insurance requirements can feel overwhelming, especially when policy requirements shift. At WELL Insurance, we specialize in e-commerce insurance tailored specifically for Amazon sellers.
We understand the exact wording, endorsements, and coverage caps Amazon demands so you never have to worry about rejected certificates or account flags.
- Fast Approval Times: Get custom quotes and policy documents issued quickly.
- 100% Amazon Compliance: Guaranteed to meet Amazon's A- rating, additional insured wording, and category-specific safety mandates.
- Tailored Product Liability Coverage: Specialized coverage for supplements, children's products, electronics, and competitive private-label goods.
Don't wait for an account health warning or the November deadline to pass. [Contact WELL Insurance today for a free quote] or reach out to our team of e-commerce specialists to review your current policy.