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Amazon Rolls Back Zero-Deductible Insurance Mandate

Amazon Rolls Back No-Deductible Insurance Mandate

Amazon rolled back a policy that had required low-volume sellers to get zero-deductible commercial liability insurance plans.

Last fall, Amazon began requiring sellers to take out a product liability insurance policy once they reached $10,000 in sales in one month on Amazon.com as opposed to the previous threshold of three consecutive months.

And in June 2022, Amazon tightened the rule so that sellers required to get insurance and whose gross sales were $1 million or less could not have a deductible on their plan.

This week, Amazon told sellers it would continue to allow insurance policies with deductibles for sellers on Amazon and reverted to its previous policy requirement that “The deductible for any policy(ies) must not be greater than $10,000 and any deductible amount must be listed on the certificate(s) of insurance.”

In Monday’s announcement, Amazon said that following the June update, “a number of sellers told us about the challenges they face in procuring zero-deductible policies. We thank our sellers for this feedback, and we won’t proceed with this change.”

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.