What Is Amazon Product Liability Insurance?

Amazon seller insurance can help you defend yourself against costly third-party claims. Even with the most rigorous product testing, accidents can and will happen. Amazon seller insurance can help you defend yourself against costly third-party claims.

How Much Does Amazon Insurance Cost?

More than 50% of Insurance Canopy customers pay less than $1,400 for their annual premiums. However, your Amazon seller insurance policy is tailored specifically to your product and business needs. Because every policy is unique, so is the price of your policy.

What Are Amazon Product Insurance Requirements? What Do I Need?

If you make $10,000 in sales in 30 days, Amazon now requires you to have product liability insurance. This helps protect you as a seller and Amazon as a marketplace in the case of a product liability claim. According to the Amazon Pro Merchant Insurance Requirements, you must: - Show proof of insurance - Provide an original Certificate of Insurance document completed in its entirety and signed - Have a policy with a general liability limit of at least $1 million dollars, is written on an occurrence basis, cover all sales from products you have listed on the Amazon website, and includes product liability insurance (bodily injury and property damage), personal injury insurance, and any other requirements outlined in the Participation Agreement - Name “Amazon.com Services LLC., and its affiliates and assignees” as additional insureds - Have a valid policy for at least 60 days from the date of submission, and your provider must give Amazon a minimum of 30 days’ notice of cancellation, modification, or nonrenewal - Verify your insured name matches the “legal entity” name you provide to Amazon - Be sure your insurance provider has global claim handling capability and a financial rating of S&P A- and/or AM Best A- or better - Ensure the deductible for any policy must not be greater than $10,000 and any deductible amount is listed on the Certificate Of Insurance

Why Should I Carry Amazon Sellers Insurance?

Having Amazon small business insurance for your products is now required of you by Amazon. Without insurance, you risk having Amazon permanently suspend your account. In most cases, Amazon will not take the blame for a non-insured claim caused by your product—making you fully responsible for any costs and repercussions.

Amazon Seller Insurance

Name: Amazon Product Seller Insurance
Brand: Insurance Canopy
Rating: 4.8 (498 reviews)

Whether you sell it, ship it, or source it, we help protect your Amazon store with every sale.

What Is Amazon Seller Product Liability Insurance?

Amazon seller insurance is a type of small business liability insurance built to protect sellers from claims related to an ecommerce business.

Once your store earns over $10,000 in monthly revenue, Amazon requires you to carry product liability insurance, and that’s where we come in. Insurance Canopy offers coverage that helps you fulfill these sellers’ requirements with a single, simple policy:

Every policy is designed to fit your operation, whether you resell, dropship, private label, or manufacture your products!

Who Needs Amazon Seller Insurance?

You need Amazon seller business insurance if you’re selling physical products on the platform, especially if you’re hitting $10,000 per month or more in sales. Specific types of sellers who should consider insurance include:

Why Do Amazon Sellers Need Insurance?

Amazon may host your storefront, but you’re still responsible for what you sell. In most cases, Amazon will not take the blame for a non-insured claim caused by your product or business operations. That makes you fully responsible for any costs and repercussions.

Having the right protection plan in place can help keep you in business for years to come!

Platform compliance

Easily meet Amazon’s insurance requirements with a custom quote from our team in just 24 hours (your business, your risks, your price!)

Product liability protection

Get coverage for injuries, property damage, or legal claims caused by your listed products, even if you didn’t manufacture them

Risk management

Reduces the financial impact of product recalls, customer complaints, or lawsuits that could disrupt your day-to-day business

FBA-friendly coverage

Our policies are designed to meet Amazon’s fulfillment center insurance requirements, helping you stay compliant and scale with confidence

Peace of mind

While you focus on listing, shipping, and selling, Amazon sellers insurance helps protect your business with each sale

Did You Know? Accidents happen! If a product you sell causes harm, you could still be sued, even if it wasn’t your fault. Amazon seller liability insurance is designed to cover you for these claims.

How Much Does Amazon Seller Product Liability Insurance Cost?

Most sellers pay an average of $116/month or less for Amazon seller business insurance from Insurance Canopy.

Your price will depend on a few key factors:

Revenue: Higher monthly sales increase your risks and premiums
Product type: Riskier categories like supplements, tools, or electronics may cost more to insure
Claims history: Previous product issues or lawsuits can raise your premium
Coverage limits: Higher limits = more protection and a higher premium
Fulfillment method: FBA, FBM, and third-party warehousing all affect your liability

Every policy is tailored to your unique business, so you only pay for the coverage your business actually needs!

What Amazon Seller Insurance Covers

Amazon seller insurance with Insurance Canopy includes key coverages to help you meet platform requirements and stay protected from product-related claims!

$2 million in General and Product Liability Insurance
Occurrence form policies
Personal and Advertising Injury included
Apply online in minutes, get a quote in 24 hours
Optional coverage add-ons are available
Add unlimited additional insureds
Tailored to your business and products

Included

General Liability Insurance

General Liability Insurance can cover third-party injury or property damage caused by your business activities, like if a delivery driver trips on your steps while picking up inventory or if you’re accused of copyright infringement in your listing photos or ad copy.

Products & Completed Operations Insurance

Product Liability Insurance can help cover claims of injuries or damages caused by the products you sell, even if you didn’t manufacture them. Common examples include electrical products that overheat, supplements that trigger reactions, or kitchen supplies with missing safety warnings.

Most claims we see involve things like manufacturing defects, design issues, or missing labels.

Recommended Add-ons

Product Recall Insurance

Product Recall Insurance covers the costs of pulling unsafe or mislabeled products from your listings, warehouse, or customers. It can also include coverage for shipping, disposal, and customer communication, but not the cost of lost revenue.

Cyber Liability Coverage

Cyber Liability Insurance helps you recover after a data breach or cyberattack involving your Amazon store, like stolen customer info or hacked accounts. It can also help you notify customers, provide credit monitoring, and offer PR support.

Workers Compensation Coverage

Workers Compensation Insurance helps cover medical bills and lost wages if a staff member is injured while packing orders, handling inventory, or working in your office. This coverage is required in most states if you have even one employee (not including you).

Inland Marine Insurance

Inland Marine Insurance helps protect your inventory, tools, or equipment while in transit or stored away from your main location (even if that’s your house). It’s ideal if you store inventory in a rented space, ship in bulk, or use Amazon FBA.

Primary & Non-Contributory Endorsement

The Primary & Non-Contributory endorsement ensures your insurance responds first in a claim involving another party. For example, someone is suing you, Amazon, and a manufacturer for a faulty product. This waiver means your insurance covers you first instead of Amazon or the manufacturer’s insurance covering you.

This is often required by Amazon or fulfillment partners.

Waiver of Subrogation Endorsement

A Waiver of Subrogation prevents your insurance from seeking reimbursement from Amazon or other third parties after a claim, like a fulfillment center or manufacturer. It’s commonly requested in contracts to protect business relationships and prevent internal financial strain or blame for a claim.

30-Day Cancellation Notice Endorsement

A 30-Day Cancellation Notice automatically notifies Amazon or another party if your policy is canceled, helping you stay compliant with marketplace requirements.

135,000+ Businesses Trust Insurance Canopy

Whatever you sell, ship, pack, or post, Insurance Canopy has your back!

Thank you so much

Steve Monreal
July 11, 2025

I needed a portable policy as a yoga instructor. I found this company in an online search. Called and got details from them, was quite surprised at how affordable... Read More

Jamie Calaway
July 4, 2025

Very easy & quick experience. We got insurance in no time with no hassle. Thank you!

Robert Earnest
July 4, 2025
I am glad I went with them. I needed a last minute policy to cover an event I was doing and they had exactly what I needed at a... Read More

Deloris Pacheco
June 27, 2025

great little company, with fair pricing, for entertainers who need occasional coverage. however, they have long hold times to speak to an agent, and their customer service left a little something... Read More

Gretje Angell
June 18, 2025

What a lovely experience I had with Insurance Canopy! Easy and fast sign up, great policy, matches my needs as a self-employed business owner. Highly recommend!

Masha Rusanov
June 18, 2025
Needed DJ insurance for Memorial Day weekend & was squared away within an hour for 2 events! Highly recommend

Jay Solis
June 18, 2025

Very user friendly platform. Multiple options. Very good pricing. Needed liability insurance in order to secure a very good paying event for my solo tribute show. Was set up within... Read More

Michael Riley
June 18, 2025

Would have 5 starts, but not right now. This is the first time I have ever had to pay for an additional insured ever in 20 year's. They either have... Read More

Anthony Burgess
June 18, 2025
Representative Sarah was very helpful. Walked me through every step and not to mention the price even matched the service! Would recommend to any and everyone.

queenkiam
June 18, 2025

Very easy to renew policy

Elyce Nissinoff
June 18, 2025

They can help.you with the right Insurance you need, and the lowest price

Alvaro Baltazar
May 18, 2025
Provides event insurance at a very reasonable price compared to other companies. Easy to purchase and provide proof of insurance.

David Fox
May 18, 2025

Affordable for dance & yoga folk. Thumbs up!

Maia Claire
May 18, 2025

Extremely affordable event insurance and an easy to work with system and team that will advise you every step of the way!

Ishan Arvin
May 18, 2025
everything is excellent

Radames Martinez
May 18, 2025

I'm a new customer/policy holder. Super easy online application and policy setup. Very competitive rates. Certificate of insurance generated and received (PDF) immediately once method of payment established. Great service... Read More online! Thank you.

Matthew Terry
April 18, 2025

For me, this application process was super efficient and easy to navigate on line. That goes a long way!

Holly Mulder
April 18, 2025
Affordable. Thank you.

Ana Young
April 18, 2025

I have not had any issues over the years with Insurance Canopy, with canceling and renewing, I have found the cost of coverage in line or better then some. I have... Read More

John Corkins
March 18, 2025

Canopy insurance has covered my DJ business for several years and I am totally satisfied with their services. Thank you DjVic🎧

DjVic Universal Sounds
March 18, 2025
I have them for 3 years this year seems price went up . I have never had to use them for a claim so really couldn’t tell you about that!

Denice Lapointe
February 18, 2025

Great for Event Insurance - most affordable

Gaby Nobrega
February 18, 2025

I was feeling overwhelmed with the specifications needed for my insurance coverage. I was offered friendly, quick and clear assistance. Through Canopy and Rey's help I was able to obtain... Read More a personalized policy.

ESPIE QUINTERO
February 18, 2025
TLJ's Mobile Mixology, LLC had been insured with Insurance Canopy since it's inception and we have no complaints.

Tenisha J.
February 4, 2025

Knowledgeable, kind, attentive and professional. She helped me to feel comfortable, well taken good care of and get the service possible.

Ed Levitt
February 3, 2025

As a Massage Therapist, I was not aware until a few years ago that I did not have to be part of an Organization to get my liability insurance! I... Read More

Kristie Williams
January 30, 2025
This insurance has helped me secure events with my corporate and local government clients. They have great customer service and are always willing to help.

Tony Felix
January 23, 2025

Representative was clear & concise in explaining specifics of the policy. Cost of policy very reasonable.

John B
January 16, 2025

I’m very happy with my purchase of liability insurance for a one-off event. I was even able to edit the policy after it had been issued with the help of... Read More

jay gedeon
January 6, 2025

Thank you so much

Steve Monreal
July 11, 2025
Very easy & quick experience. We got insurance in no time with no hassle. Thank you!

Robert Earnest
July 4, 2025
I needed a portable policy as a yoga instructor. I found this company in an online search. Called and got details from them, was quite surprised at how affordable... Read More

Jamie Calaway
July 4, 2025
I am glad I went with them. I needed a last minute policy to cover an event I was doing and they had exactly what I needed at a... Read More

Deloris Pacheco
June 27, 2025
great little company, with fair pricing, for entertainers who need occasional coverage. however, they have long hold times to speak to an agent, and their customer service left a little something... Read More

Gretje Angell
June 18, 2025
Representative Sarah was very helpful. Walked me through every step and not to mention the price even matched the service! Would recommend to any and everyone.

queenkiam
June 18, 2025
What a lovely experience I had with Insurance Canopy! Easy and fast sign up, great policy, matches my needs as a self-employed business owner. Highly recommend!

Masha Rusanov
June 18, 2025
Needed DJ insurance for Memorial Day weekend & was squared away within an hour for 2 events! Highly recommend

Jay Solis
June 18, 2025
Very user friendly platform. Multiple options. Very good pricing. Needed liability insurance in order to secure a very good paying event for my solo tribute show. Was set up within... Read More

Michael Riley
June 18, 2025
Would have 5 starts, but not right now. This is the first time I have ever had to pay for an additional insured ever in 20 year's. They either have... Read More

Anthony Burgess
June 18, 2025

Questions About Amazon Seller Insurance

Does Amazon Require Product Liability Insurance?

Yes, Amazon requires product liability insurance if your store earns $10,000 or more in monthly revenue.

Can I Use This Insurance If I Also Sell on Etsy or Shopify?

Yes, you can use this insurance if you also sell on Etsy or Shopify! Your policy can extend coverage to your entire ecommerce business, even if you sell on multiple platforms.

What Does Product Liability Insurance Cover for Amazon Sellers?

Product liability insurance for Amazon sellers is designed to cover:

Legal fees
Medical costs
Settlements

It’s protection if a product you sell causes injury or property damage, even if you didn’t manufacture it.

What’s The Minimum Coverage Amazon Requires?

The minimum coverage Amazon requires is $1 million in general and product liability insurance. Your policy must also include:

Occurrence-based coverage
Amazon listed as an additional insured
Valid proof of insurance for an active policy
A deductible no higher than $10,000
Coverage from a carrier that has a rating of S&P A- or AM Best A- or better

How Fast Can I Get My COI to Sell on Amazon?

In most cases, you can get your Certificate of Insurance (COI) to sell on Amazon within 24 hours of applying for a quote with Insurance Canopy.

We help you get compliant and back to business quickly!