This post covers the Amazon Commercial Liability Insurance Requirement and what Amazon sellers need to know and how to submit correctly. If you are selling on Amazon at scale, you may receive a notification requiring you to obtain and submit Commercial General Liability (CGL) Insurance. Obtaining commercial liability insurance is important for Amazon sellers because it protects your business from financial loss if a product causes injury or property damage. Even experienced sellers face risk exposure, especially as sales volume increases and products reach more customers. Amazon requires this coverage to ensure sellers can respond to product liability claims without disrupting the marketplace. Without proper insurance, a single claim could result in significant legal costs, settlements, or even business closure. Beyond compliance, carrying the correct policy is a foundational risk management step for any serious brand or manufacturer. The process for submitting CGL can bee confusing and requirements can be specific. This post will help explain:
When Amazon requires commercial liability insurance
What the policy must include
How to properly list Amazon as an additional insured
How to submit your insurance information correctly in Seller Central
Common mistakes that cause rejections
If you need a referral to an insurance company or assistance with submitting your coverage properly within Amazon’s system, please reach out to Goat Consulting for assistance.
When Does Amazon Require Commercial Liability Insurance?
Amazon typically requires commercial liability insurance when your gross proceeds exceed $10,000 in a month, and you receive a formal insurance request from Amazon. That said, Amazon reserves the right to require insurance at any time. Once you exceed the $10,000 threshold you must obtain and maintain the CLI within 30 days. This requirement applies to professional sellers and is part of Amazon’s broader risk management and policy framework. If you receive the notification, you must act within the stated deadline to avoid potential selling restrictions.
What Does Amazon Require in the Insurance Policy?
Amazon has very specific requirements for your commercial liability insurance. Here is a list of the requirements:
The insurance policy type can be either commercial general, umbrella, or excess liability;
The policy must be written on an “occurrence basis”;
The policy limit must be at least USD 1 million per occurrence and in aggregate, and cover liabilities caused by or occurring in conjunction with your business operations, including products, products/completed operations and bodily injury;
The deductible for any policy(ies) must not be greater than $10,000. Any deductible amount must be listed on your Certificate of Insurance;
The policy must cover all sales from products you have listed on the Amazon.com store;
The policy must name "Amazon.com Services LLC and its affiliates and assignees" as additional insureds;
The policy must not have any sunset clause;
Except for single-member LLCs, your insured name must match the “legal entity” name you provided to Amazon in your Account Info. For single member LLCs, where your legal entity name is different than the name you publicly use to identify your business (“trade name,” “doing business as,” or “DBA”), it is also acceptable for your insured name to match your trade name;
Your insurance provider must have global claim handling capability and a financial rating of S&P A- and/or AM Best A- or better (if S&P or AM best is not valid or used in the country where you are required to obtain insurance, a local equivalent is allowed);
The policy must be completed in its entirety and signed by an authorized representative of your insurance provider; and
Your insurance provider must give Amazon at least 30 days’ notice of cancellation, modification, or non-renewal.
How to Properly List Amazon as an Additional Insured
This is one of the most common areas where submissions fail. Your Certificate of Insurance (COI) must clearly show and state the exact points below:
Your business name (matching Seller Central exactly)
The policy limits
Effective and expiration dates
The Additional Insured endorsement naming Amazon correctly
It is not enough for Amazon to be “covered.” They must be explicitly listed as an Additional Insured. If your insurance broker is unfamiliar with Amazon’s requirement, provide them with the exact language from the Seller Central notification. Failure to include the exact details can lead to failed uploads
Frequently Asked Questions - Amazon Commercial Liability Insurance Requirement
What are the required documents for Insurance with Amazon?
Amazon may ask you to provide a certificate of insurance within 30 days to show your compliance with our selling agreement. Your insurance company issues a Certificate of Insurance once you purchase a policy. This document details the property and persons covered, the amount of coverage, and any exclusions or deductibles. If needed, Amazon may request additional documents such as a complete copy of your insurance policy and an invoice for purchasing your policy.
What format do I submit my Insurance form in?
This document can be in .pdf, .doc, or .docx format.
Why is it important to have Commercial Liability Insurance when selling on Amazon?
Commercial Liability Insurance (CLI) protects your business from financial exposure if your product causes bodily injury or property damage. As your sales volume grows on Amazon, so does your risk, making proper coverage essential to safeguard your assets and operations. It also ensures you remain compliant with Amazon’s requirements and can continue selling without interruption.
How much does Commercial Liability Insurance for Amazon cost?
The cost of product and commercial liability insurance can vary widely depending on the product category, revenue, claims history, risk level of your products, and coverage amounts.
What categories will Amazon allow claims-made policies only?
Amazon will allow claims-made policies for the following categories: Pharmaceuticals, Nutraceuticals and dietary supplements, Ingestible products, Chemicals, Critical automotive parts, and Children’s consumable products that are not insurable under an occurrence policy form. Other products deemed acceptable to Amazon for claims-made policies. If you sell in other categories, you will still need to provide a separate occurrence policy covering the rest of the products you sell. If you fall within these categories or you are located in France. Your policy must include the following: Have a policy limit of at least $1 million, Be renewed continuously and be effective in full force for the period in which you sell the product(s) listed. For France-based sellers, the policy must be renewed continuously and be effective in full force for the entire period in which you sell on Amazon.com., Be in effect at least 3 years after you cease selling the products listed above, or include tail coverage for a minimum period of 3 years.
What happens if you do not submit the requested insurance documents to Amazon?
If you do not submit the required commercial liability insurance, Amazon may restrict your ability to create or update listings. Continued non-compliance can lead to full account suspension until valid insurance documentation is approved. Amazon treats insurance as a mandatory requirement, so missing the deadline can directly impact your ability to sell.
Conclusion
Amazon’s Commercial Liability Insurance requirement is not just another policy, it is a foundational compliance obligation for growing sellers that helps mitigate your risk. As sales increase, so does your risk that something bad could happen. Having the right commercial and product liability insurance is an essential part of protecting your downside so you can continue to focus on growing your company. it is important that you obtain the correct type of insurance and submit the exact standards that Amazon expects. Failure to do that can cause delays or selling restrictions. If you need help securing compliant coverage through a referral or submitting your insurance properly, Goat Consulting is here to guide you through the process.
About the Author - Reed Thompson
This post was written by Reed Thompson, the CEO at Goat Consulting. Reed helps lead the Goat Consulting team and their clients sell on Amazon by increasing sales, mitigating risk, reducing costs, and solving problems. Reed has experience and expertise in guiding sellers through the policy requirements for Insurance on Amazon. If you want help troubleshooting or assistance with other aspects of selling on Amazon, please reach out!
Disclaimer: This article is for informational purposes only and does not constitute legal or insurance advice. Goat Consulting is not an insurance provider or broker. Sellers should consult with a licensed insurance professional to obtain coverage appropriate for their specific business needs.