Selling on Amazon gives you access to millions of customers, but it also comes with contractual obligations. These requirements help make sure that sellers have financial protection if a product they sell causes bodily injury, property damage or other covered claims.
Understanding Amazon’s $1 Million Liability Requirement
Amazon generally requires eligible sellers to maintain at least $1 million in commercial general liability (CGL) insurance. This minimum liability limit is designed to help cover potentially costly claims arising from products sold through the platform. A CGL policy written to meet Amazon’s standards typically covers:
- Bodily injury: A customer is injured by a product you sold and files a claim against you.
- Property damage: Your product damages a buyer’s home, vehicle or other property.
- Personal and advertising injury: A third party files a claim against you for libel, slander or copyright infringement in your advertising.
The policy must meet Amazon’s minimum coverage threshold, name Amazon.com Services LLC and its affiliates as additional insureds, and be maintained continuously once required.
What Amazon Seller Insurance Typically Covers
In addition to CGL insurance, a business insurance package structured for Amazon sellers may include:
- Product liability insurance for added financial protection when claims caused by items you sell exceed your CGL limits
- Commercial property insurance for inventory, equipment and other physical assets damaged by covered events such as fire, theft or severe weather
- Cyber liability insurance for data breaches, cyberattacks, ransomware events, and related legal or notification expenses
- Business interruption insurance for help with lost income and ongoing expenses if a covered event temporarily disrupts your operations
How We Can Help
WELL Insurance can shop multiple carriers to build an insurance package structured specifically for e-commerce sellers. Our agents are familiar with Amazon seller requirements and can confirm your coverage meets the platform’s standards before you submit documentation. Contact us today to get started.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.