Amazon's new insurance rules start today: are you now in scope
Amazon's insurance rules changed on November 2, 2026. Sellers in enhanced-safety categories may now need $1 million in liability coverage regardless of sales volume. Learn what changed, who is affected, and how to check whether your Amazon listings meet the new requirements.
Amazon's commercial liability insurance requirements changed on November 2, 2026. Here's what Amazon sellers need to know about the new safety-category rules, insurance requirements, and how to check whether their listings are affected. For years, smaller Amazon sellers had a relatively simple answer to the question, "Do I need commercial liability insurance?" If your gross proceeds stayed below $10,000 a month, the standard sales-based requirement generally hadn't kicked in. As of November 2, 2026, that answer has changed for sellers in certain product categories.
Amazon announced two additional commercial liability insurance requirements on September 3, 2026. Under the first, sellers offering products in categories with enhanced safety listing requirements now need at least $1 million in coverage, regardless of how much they sell. Under the second, sellers based in Mainland China must obtain new qualifying policies through the Amazon Insurance Accelerator (AIA) program. For some sellers, this changes nothing. For others, even a low-volume product listing could now require insurance that wasn't previously mandatory under the sales threshold. This guide explains what changed, what stayed the same, and how to check your listings against Amazon's requirements without guessing.
What Stayed the Same
Amazon's existing sales-based insurance requirement remains in place. If your gross proceeds from Amazon.com sales exceed $10,000 in any month, you must obtain and maintain commercial liability insurance within 30 days. The minimum coverage remains $1 million per occurrence and $1 million in aggregate. Amazon's published requirements also specify the types of insurance it accepts, including commercial general liability, umbrella, and excess liability policies. Coverage generally needs to be written on an occurrence basis, although Amazon allows certain exceptions where qualifying products cannot be insured under that structure.
Your policy must have a deductible no higher than $10,000 and name "Amazon.com Services LLC and its affiliates and assignees" as additional insureds. It must also meet Amazon's requirements for insurer qualifications, cancellation notices, and coverage of products sold through Amazon.com. The insured name generally needs to match the legal entity registered in Seller Central, although Amazon provides an exception for certain single-member LLCs using a trade name. These requirements matter because having an insurance policy isn't automatically the same as having one Amazon will accept.
If you already have valid coverage, the new rules don't necessarily mean you need to purchase another policy. What matters is whether your existing policy satisfies Amazon's requirements and covers the products that are now subject to mandatory insurance.
New Rule One: Enhanced Safety Categories No Longer Have a Sales Threshold
The biggest change affects sellers with products in categories that Amazon identifies as having enhanced safety listing requirements. Previously, a smaller seller operating below the standard $10,000 monthly threshold might not have needed insurance under the sales-based rule. That is no longer the case for affected categories. From November 2, sellers with products covered by these enhanced safety requirements must maintain commercial liability insurance with at least $1 million per occurrence and in aggregate, regardless of their monthly sales volume. The change applies to both new and existing product listings. Amazon specifically names children's products, cosmetic and ingestible products, and lithium battery products among the affected categories. Other categories include certain household devices, personal safety equipment, medical products, and transportation-related products.
However, Amazon makes an important distinction: its published category list can change and does not cover every product that may be subject to these requirements. That means sellers shouldn't assume they're exempt simply because their product doesn't appear in a short summary of affected categories. The safer approach is to review Amazon's enhanced safety listing requirements and check Account Health for product-specific requirements. Consider a seller generating only a few hundred dollars in monthly sales from a children's product or a lithium battery accessory. That seller may have remained below the old sales threshold for years. But if the product falls within an affected category, commercial liability insurance may now be required. The age of the listing doesn't change that requirement. A product added years ago can still be subject to the new rules.
New Rule Two: Mainland China-Based Sellers Must Use AIA
The second change affects where certain sellers can obtain their insurance. Amazon now requires sellers based in Mainland China to obtain new insurance policies through the Amazon Insurance Accelerator (AIA) program, unless Amazon agrees otherwise in writing. AIA connects sellers with a network of insurance providers that Amazon has identified as familiar with its coverage requirements. The program itself isn't new, but its use is now mandatory for newly submitted qualifying policies from this group of sellers. Starting November 2, 2026, Amazon will reject newly submitted insurance policies from Mainland China-based sellers that weren't obtained through AIA, subject to Amazon's stated exceptions. There is an important transition provision. If a seller already has a valid qualifying third-party insurance policy that was submitted to Amazon before November 2, that policy can continue to be used until it expires. When renewal becomes necessary, the replacement policy must come through AIA unless Amazon provides an exception.
For sellers based outside Mainland China, the new AIA-specific sourcing requirement doesn't automatically apply. They can continue using qualifying insurers that meet Amazon's applicable requirements. The key distinction is between whether you need insurance and where you're required to obtain it. The enhanced-safety and sales-based rules determine the insurance obligation, while the AIA requirement affects how Mainland China-based sellers obtain qualifying coverage.
Why This Matters Beyond Compliance
There are two separate reasons sellers should pay attention to these requirements. The first concerns selling privileges. Amazon's enhanced safety requirements can affect whether an impacted product remains eligible for sale. A seller may have a perfectly healthy sales dashboard while an unresolved insurance requirement creates a problem for one or more listings. Amazon's category guidance explains that proof of insurance is submitted through Business Insurance verification in Seller Central. Sellers who receive notices should follow the requirements and deadlines stated in their own accounts rather than assuming the same deadline applies to everyone. The second reason is financial exposure.
Commercial liability insurance is intended to help protect a business against certain covered claims, including situations where a product causes bodily injury or property damage. Without appropriate coverage, a claim could create substantial financial consequences for the seller. Of course, a $1 million policy doesn't guarantee that every claim will be covered. Actual protection depends on the policy's terms, exclusions, limits, and the circumstances of the claim. That's why this shouldn't be treated as a simple administrative checkbox. The goal is to understand whether your business needs coverage, whether your current policy meets the applicable requirements, and whether the products you sell are properly included. Neither a strong sales month nor a healthy-looking dashboard answers those questions.
Self-Check: Are Your Listings in Scope?
You don't need to begin by purchasing a new insurance policy. Begin by checking which requirements apply to your business and products.
Start with your active listings. Export or review the ASINs currently available in your Amazon catalog, including older and low-volume products. Don't limit the review to your best sellers, because the enhanced-safety requirement isn't based on how much an individual product earns
Check each product against Amazon's safety requirements. Review the current enhanced-safety category guidance in Seller Central and any product-specific notifications in Account Health. If a product is subject to the new insurance requirement, the fact that it generates very little revenue doesn't remove that obligation. If its classification is unclear, seek clarification rather than assuming it's exempt.
Review your monthly gross proceeds. Check whether your Amazon.com gross proceeds exceeded $10,000 in any month. If they did, the existing sales-based requirement applies, regardless of whether your products fall within an enhanced-safety category.
Confirm your business location. If your business is based in Mainland China, check whether any new insurance policy must be obtained through AIA. If you have an existing third-party policy submitted before November 2, verify its expiry date and whether it qualifies under Amazon's transition provision.
Review your current insurance documents. If you already have coverage, check the policy type, coverage limits, deductible, insured business name, additional-insured wording, insurer eligibility, and products covered. A licensed broker can help confirm whether the policy satisfies the applicable requirements.
Check what's changed since your last renewal. New products, categories, suppliers, or business operations may affect your coverage. A policy that was appropriate when you first purchased it might not cover everything you're selling today. If you find an affected listing, don't assume the next step is automatically buying a second policy. First establish whether an existing policy can be confirmed, amended, or replaced to meet the requirements. If your review doesn't identify a sales-based trigger or an affected product, you may not be required to obtain coverage under these particular triggers. However, Amazon can impose product-specific requirements, and you should continue checking notices and current policy guidance.
What Sellers Should Do Now
If you've identified a product that requires coverage and you don't currently have a policy, begin speaking with a qualified insurance provider or broker. Obtaining an acceptable policy and completing Amazon's verification process can require time, so delaying the process may create unnecessary listing risk. If you're already insured, ask your broker to confirm in writing that your policy meets Amazon's requirements and covers the products now subject to enhanced safety rules. Keep the relevant documents organized and accessible. Mainland China-based sellers with an existing qualifying third-party policy should record its expiry date and prepare for the AIA requirement when renewal becomes necessary.
If Amazon has sent you an insurance notice, read it carefully. Identify the affected listings, the requested documentation, the submission process, and any deadline explicitly stated in the message. Don't substitute a deadline from another seller's experience or a general blog post for the one Amazon provides to your account. For sellers who aren't currently affected, add an insurance-requirement check to the product onboarding process. Every time you introduce a new product category, review whether the listing brings additional compliance or coverage requirements. The objective is to catch the issue before it becomes a restriction on an active listing.
Where Sydon AI's Compliance Manager Fits
Insurance compliance involves decisions that software alone shouldn't make. An AI tool cannot substitute for a licensed insurance broker, determine whether every claim will be covered, or guarantee that Amazon will accept a particular policy. That's also where the boundaries of Sydon AI's Compliance Manager matter. Compliance Manager doesn't sell insurance, purchase policies, verify coverage, or submit insurance documents to Amazon. Those responsibilities remain with the seller, their insurance provider, and the relevant Amazon verification process.
What Compliance Manager can do is help organize an Amazon compliance notice into a clearer workflow. When you paste or forward a notice, Compliance Manager can open a case and identify important details such as the affected product, case number, and deadline when those details are explicitly included in the notice. You review and confirm the extracted information before relying on it. If the notice doesn't specify a deadline, Compliance Manager doesn't invent one. It tells you that the deadline is unknown and needs to be checked. The agent can also build a document checklist based on what Amazon actually requests, helping you keep the necessary information together rather than searching across emails and documents.
Everything remains under your control. Compliance Manager helps read, organize, and prepare the work, while you review the information and complete any required submissions through Seller Central. For a seller managing multiple ASINs and compliance notices, that means less time figuring out what Amazon is asking for and more clarity about what needs attention next. Got an Amazon compliance notice you're unsure about?
The Bottom Line
Amazon's November 2 insurance changes don't mean every small seller suddenly needs a new policy. But they do mean the old $10,000 sales threshold is no longer enough to determine whether some sellers need coverage. For affected enhanced-safety categories, product type now matters regardless of sales volume. For Mainland China-based sellers who need a new policy, the route used to obtain insurance matters too. The most useful thing you can do is review your active listings, check Amazon's current requirements, and confirm whether your existing coverage is appropriate.
You don't need to guess whether your business is affected. You need to know which products Amazon considers in scope, what documentation it requires, and whether your policy meets those requirements. And if Amazon sends you a notice, make sure it becomes an action before it becomes a bigger problem.
Frequently Asked Questions
Do I Need Insurance if I Sell Under $10,000 a Month?
Yes, if you're selling products subject to Amazon's enhanced safety listing insurance requirements. Since November 2, 2026, affected products require qualifying coverage regardless of monthly sales volume. Other insurance requirements or account-specific notices may also apply.
Does This Apply to Listings I Created Years Ago?
Yes. Amazon states that the enhanced-safety insurance requirement applies to new and existing listings. A product doesn't become exempt simply because it was listed before the rule changed.
How Do I Know Whether My Product Is in an Enhanced Safety Category?
Review Amazon's current enhanced-safety category guidance and any product-specific notifications in Seller Central. Amazon names children's products, cosmetic and ingestible products, and lithium battery products as examples, but its category list is not exhaustive and may change.
I'm Based in Mainland China and Already Have a Third-Party Policy. Is It Still Valid?
If your policy meets Amazon's requirements and was submitted before November 2, 2026, Amazon says it can continue to be used until expiration. A replacement policy must then be obtained through AIA unless Amazon agrees otherwise in writing.
Can Amazon Ask for Insurance Even if I Haven't Crossed the Sales Threshold?
Yes. The enhanced-safety category rule is one example. Amazon may also communicate specific insurance or product-compliance requirements through Seller Central. Review the requirements relevant to your account and listings.
Can Sydon AI Get Me Insured or Submit My Insurance Documents?
No. Sydon AI doesn't sell, verify, or submit insurance policies. Compliance Manager can help turn an Amazon notice into a case, extract explicitly stated details, and organize a document checklist. You and your insurance provider remain responsible for coverage, and you complete the required submission in Seller Central.
This article summarizes Amazon's published commercial liability insurance requirements as of November 4, 2026. It is for general information and is not legal or insurance advice. Confirm your specific obligations and coverage with Amazon and a licensed insurance professional.