Selling on Amazon offers incredible opportunities, but it also comes with specific responsibilities—like meeting their Commercial General Liability (CGL) insurance requirements. Navigating these rules can feel daunting, but it doesn’t have to be. This blog post breaks down Amazon’s insurance mandates, walks you through the steps to stay compliant, and shows how B2C Policy simplifies the process. Whether you’re a new seller or scaling your business, this guide will help you protect your account and focus on growth.
Why Amazon Requires Insurance
Amazon enforces insurance requirements to safeguard sellers, customers, and the platform. If a product you sell causes injury or damage, you could face liability claims—think legal fees, settlements, or costly judgments. Without insurance, these expenses could devastate your business. By mandating coverage, Amazon ensures you’re prepared for risks while maintaining your selling privileges.
Who Needs Insurance on Amazon?
Not every seller needs insurance, but many do. Amazon requires Commercial General Liability (CGL) insurance for:
- High-volume sellers: If your gross proceeds exceed $10,000 in any single month, you must carry insurance.
- Sellers in high-risk categories: Products like automotive parts, baby items, electronics, or health supplements require coverage, regardless of sales volume.
If you meet either criterion, compliance is mandatory. Ignoring these rules risks account suspension or deactivation—so it’s critical to know where you stand.
Amazon’s Insurance Requirements: The Details
Amazon’s insurance standards are precise. Your policy must include:
- Coverage Type: Commercial General Liability (CGL) insurance.
- Minimum Limits:
- $1 million per occurrence (covers each individual claim).
- $1 million aggregate (total coverage for all claims in a policy period).
- Additional Insured: Amazon must be named as an “additional insured” on your policy.
- Product Liability: Coverage must explicitly include product liability claims.
- Certificate of Insurance (COI): You’ll need to submit a COI to Seller Central as proof.
These specifics ensure protection for both you and Amazon if something goes wrong. Meeting them keeps your account compliant and your business secure.
Step-by-Step Guide to Compliance
Getting insured and staying compliant is straightforward when you break it down. Here’s how to do it in three steps:
Step 1: Understand Your Insurance Needs
Start by confirming whether you need insurance. Review your monthly sales and product categories against Amazon’s criteria. If you’re in scope, ensure your policy meets the $1M per occurrence and aggregate limits, includes product liability, and lists Amazon as an additional insured.
Step 2: Choose the Right Insurance Provider
Not all insurers cater to e-commerce sellers, which is where B2C Policy shines. We specialize in insurance for Amazon sellers, offering:
- Tailored Coverage: Policies designed to meet Amazon’s exact requirements—no gaps or guesswork.
- Affordable Options: Plans that fit your budget, whether you’re just starting or scaling up.
- Fast Service: Get a quote in minutes and your COI ready to upload quickly.
With B2C Policy, you’re working with experts who get the unique needs of online businesses.
Step 3: Upload Your COI and Stay Current
After securing your policy, upload your Certificate of Insurance (COI) to Seller Central to prove compliance. But don’t stop there—mark your calendar for renewals. A coverage lapse can flag your account, so staying proactive is essential. B2C Policy simplifies renewals, keeping you covered without the hassle.
Pro Tip: Set renewal reminders or opt for automatic updates to avoid surprises.
How B2C Policy Ensures Compliance
At B2C Policy, we make Amazon compliance effortless. Here’s what sets us apart:
- Amazon-Ready Plans: Our policies meet all of Amazon’s requirements—$1M limits, product liability, and additional insured status included.
- Speedy Process: Get a quote fast and your COI in hand without delays.
- E-commerce Expertise: Our team understands online selling, offering guidance tailored to your business.
- Scalable Solutions: As your sales grow, we adjust your coverage to match—cost-effective and efficient.
With B2C Policy, you’re not just insured—you’re supported by a partner who knows your world.
Common Mistakes to Avoid
Even well-meaning sellers can trip up. Watch out for these pitfalls:
- Forgetting to list Amazon as an additional insured: This is a dealbreaker—your policy won’t qualify without it.
- Letting coverage lapse: Missing a renewal can jeopardize your account status.
- Underinsuring: Policies below $1M or lacking product liability won’t cut it.
Partner with a provider like B2C Policy to sidestep these errors and stay compliant.
Why Compliance Matters
Beyond avoiding suspension, meeting Amazon’s insurance rules protects your business. Proper coverage guards against:
- Product liability claims: Covers costs if a customer is harmed by your product.
- Legal expenses: Shields you from the financial burden of lawsuits.
- Reputation risks: Shows customers you’re a reliable seller.
Compliance isn’t just a rule—it’s a safety net for your success.
Take Action with B2C Policy
Don’t let insurance requirements hold you back. With B2C Policy, you get coverage that’s easy, affordable, and built for Amazon sellers. Stay compliant, protect your business, and keep growing with confidence.
Ready to simplify compliance?