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$1M liability insurance required for enhanced-safety categories

Amazon is expanding its commercial liability insurance requirement beyond the sales-based trigger. From 2 November 2026, US sellers listing in categories with enhanced safety listing requirements must carry at least USD 1 million in coverage regardless of how much they sell.

What exactly is changing

  • Applies to both new and existing listings in affected categories.
  • The existing trigger — insurance within 30 days of exceeding USD 10,000 in monthly gross proceeds — stays in place for everyone else.
  • Minimum coverage remains USD 1M per occurrence and in the aggregate.
  • Amazon cites children's products, cosmetic and ingestible products and lithium battery products as examples, and says the list is not exhaustive.
  • Mainland China-based sellers must source new policies through the Amazon Insurance Accelerator; valid non-AIA policies filed before 2 November can run to expiry.

Why this matters for sellers

Until now the insurance requirement was a scale problem — you hit it once you were selling enough. From 2 November it is a category problem, so a small seller listing a single children's product or a lithium-battery item needs the same USD 1M cover as a large one. Failing to provide it puts the listing, and potentially the account, at risk, and policies are not issued overnight.

What to do next

  1. 1Check whether any of your ASINs sit in categories with enhanced safety listing requirements — children's products, cosmetics and ingestibles, and lithium battery products are the named examples.
  2. 2If so, arrange USD 1M per-occurrence and aggregate cover now rather than near the deadline.
  3. 3Mainland China-based sellers: new policies must come through the Amazon Insurance Accelerator.
  4. 4Upload the certificate in Seller Central and diarise the renewal so cover never lapses.

This summary is written from Amazon's own Seller Central and Amazon Ads announcements and is general guidance, not advice on your specific account. Amazon revises policies, dates and fees regularly and terms differ by marketplace — confirm the current rule in Seller Central for your store before acting on it.