Amazon requires sellers to have insurance, and on November 2, 2026, it is updating its commercial liability insurance requirements. It is lowering the threshold at which sellers will be required to obtain insurance for those selling products “in categories with enhanced safety listing requirements.” And it will change how sellers based in Mainland China can obtain their insurance.
Amazon made the following announcement on September 3rd:
New Commercial Liability Insurance Requirements effective November 2, 2026
“Effective November 2, 2026, we’re updating our commercial liability insurance requirements to help protect Amazon’s customers as well as help you protect your business from financial loss in the event of a product-related incident.
“Our existing policy requires all sellers to obtain and maintain commercial liability insurance within 30 days if gross proceeds from Amazon.com sales exceed USD 10,000 in any month, with minimum coverage of USD 1 million per occurrence and in the aggregate. In addition to this existing requirement, we are introducing two additional requirements:
“First, sellers with products listed in categories with enhanced safety listing requirements will now be required to maintain a commercial liability insurance policy that covers those products, with a minimum coverage of USD 1 million per occurrence and in aggregate, regardless of whether they meet the USD 10,000 gross proceeds in a month threshold. This change applies to both new and existing listings.
“Product categories with enhanced safety listing requirements include, but are not limited to, children’s products, cosmetic and ingestible products, and lithium battery products. For the full list of categories impacted by these changes, go to Product categories with enhanced safety listing requirements.
“Second, sellers based in Mainland China must now obtain their insurance through the Amazon Insurance Accelerator (AIA) program. AIA connects you with a network of pre-vetted insurers who understand Amazon’s coverage requirements, making it easier to secure compliant coverage, avoid policy rejections, and ensure your claims are supported when they arise. Starting November 2, 2026, we will reject newly submitted insurance policies that are not obtained through AIA. If you have a valid third-party insurance policy that meets the coverage requirements and was submitted to Amazon before November 2, you can continue using it until it expires. After that policy expires, you will be required to obtain insurance through AIA.
“The updated Commercial Liability Insurance requirements page reflects these changes. For more information, go to the ‘frequently asked questions’ section on the Business Insurance page.”
Amazon sellers and consultants discussed the issue in this thread on LinkedIn, such as one person who wrote:
“This is an important change, especially for sellers in higher-risk categories. The biggest issue I see is that many sellers only think about insurance once Amazon asks for it.
“If the requirement is expanding to certain categories regardless of sales volume, checking coverage before November 2 is definitely better than dealing with a compliance issue after the fact.”
