My marketplace seller agreement requires insurance — what do I actually need?
A marketplace seller agreement may require liability insurance once your sales pass a set level, with the marketplace named on your policy. Read the insurance section, match each line to your policy, and confirm the current wording on Amazon's help page before you buy. Amazon's published figures, as checked in November 2026, are in the table below.
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- Amazon's published terms, as checked in November 2026, start at $10,000 in sales in one month and ask for $1M limits, with Amazon named on your policy. Confirm them on Amazon's help page.
- A published Amazon notice effective 2 November 2026 sets $1M limits for certain product categories whatever your sales.
- Each marketplace has its own agreement. Read the insurance section of each one, and have your agent match your policy to it before you buy.
What does a marketplace seller agreement ask a seller to carry?
It usually sets a sales level above which you must hold liability coverage, a minimum limit and the marketplace named on your policy. It may add a rating for the insurer. Each marketplace writes its own agreement, so the numbers differ.
The elements below are as published by Amazon, checked November 2026. They come from Amazon's seller agreement and its help page on commercial liability insurance, and the letters after each row point to the source. Confirm the current wording on Amazon's help page before you buy a policy.
| The agreement says | In plain words | What to check |
|---|---|---|
| Have coverage no later than 30 days after gross sales pass $10,000 in one month on Amazon.com. [A, B] | One month over $10,000 starts a 30-day clock. | Your monthly sales by channel, and whether you have been over. |
| At least $1M per occurrence and in aggregate. [A, B] | $1M for any one claim and $1M across the policy year. | Both numbers on the front page of your policy. |
| Amazon.com Services LLC and its affiliates and assignees are named as additional insureds. [A] | Amazon is added to your liability policy by a written change. | That the written change names Amazon's party exactly as the agreement words it. |
| Deductible of no more than $10,000. [A] | What you pay first on a claim cannot be higher than that. | The deductible on the front page of your policy. |
| Insurer rated A- or better by Standard & Poor's and/or AM Best. [A] | The insurer has a strong financial grade from a rating agency. | Ask your agent for the insurer's rating before you buy. |
| Insurer gives Amazon 30 days' notice of cancellation, change or non-renewal. [A] | Amazon is told before your coverage ends or shrinks. | Whether your insurer will give notice to a party named on the policy. |
| From 2 November 2026, sellers in categories with "enhanced safety listing requirements" carry at least $1M per occurrence and in aggregate, whatever their sales, on new and existing listings. [A, C] | Children's products, cosmetic and ingestible products and lithium battery products are named, and the list is not limited to them. | Which category each product you list falls in, and whether your policy covers it. |
Sources, all published by Amazon and checked November 2026: [A] Amazon's help page "Commercial Liability Insurance Requirements", which supports every row; [B] Amazon Services Business Solutions Agreement, section "Insurance", which also supports the first two rows; [C] Amazon's notice effective 2 November 2026, used only for the start date and the example categories in the last row. This summarizes published terms and is not a statement of what any policy pays; your own policy wording governs.
How do I check my policy against the agreement?
Put the agreement's insurance section next to the front page of your policy and match each line. Then ask your agent to show you where your own products are covered and what the policy leaves out.
- Read the current wording first. The table is a dated snapshot, and Amazon's help page holds the current version.
- Match the numbers. The limits, the deductible and the insurer's name sit on the policy's front page, which insurers call the declarations page. A deductibleDeductible The amount you pay yourself on a covered claim before the insurance company pays the rest. Insurers call this a deductible. more → is the amount you pay first on a claim. An aggregate limitAggregate Limit The most your policy will pay for all claims combined during the policy year, no matter how many there are. Insurers call this the aggregate limit. more → is the most the policy pays for all claims in the year, on top of the limit for any one claim.
- Ask for the written change that names the marketplace. An additional insuredAdditional Insured Another person or business covered under your liability policy for claims tied to your work or property, such as a landlord or general contractor. Insurers call them an additional insured. more → is a party added to your liability policy so it can be defended over claims tied to your products. The endorsementEndorsement A written change attached to your policy that adds, removes, or alters coverage partway through the term. Insurers call it an endorsement. more → that adds it is a written change to the policy, and a certificate of insuranceCertificate of Insurance (COI) A one-page proof of your coverage, showing the insurer, policy number, and limits, that you hand to a landlord or client. Insurers call it a certificate of insurance. more → is only the one-page proof. Our explainer on what a certificate is shows each box.
- Ask what the policy leaves out. Ask whether your product liability coverage applies to every product category you list, and whether it pays recall costs. Check too that the business named on the policy is the one named on your seller account.
A marketplace's limit is a floor for the contract, not a measure of your risk. If you import goods or sell under your own label, the law can treat you like the maker of the product. Louisiana's product-liability law counts a seller who labels a product as its own as a manufacturer. (Source: Louisiana Legislature) Washington's law holds a seller to the manufacturer's liability when the product is marketed under the seller's own brand name. (Source: Washington Legislature) These are statutes, not a prediction for your case, so ask your attorney how they apply to you. A claim can pass $1M, and an umbrella policy, which stacks extra liability coverage on top, is one way to raise the ceiling. Our explainer on whether you need one walks through the decision.
What about other marketplaces and my own site?
Each marketplace has its own seller agreement, with its own sales level, limits and named party. Read the insurance section of every one you sell on, and give your agent each one. Your own website has no marketplace agreement, but a landlord, a lender or a warehouse contract may ask for proof in its own words.
The same liability policy can serve several agreements, but only if its limits, deductible and named parties satisfy the strictest of them. A landlord or warehouse asks in its own document, and our guide to lease and warehouse requirements covers those. If you sell in several states, our guide to finding an agent in your state explains what to ask.
Frequently asked questions about marketplace insurance requirements
No. The requirement is about liability claims, not your goods. Stock needs property coverage, and stock held in a marketplace's warehouse follows that marketplace's own written rules, so ask your agent what your policy does at that location.
Yes. The agreement sets when you must have it, not when you may buy it. A product claim can arrive at any sales level, so ask your agent whether to start sooner.
Not necessarily. The limit is one line. The agreement may also set the named party, the deductible and the insurer's rating, so check each against the marketplace's own page before you buy.
Have your seller agreement's insurance section checked against your policy
Include the insurance section of each seller agreement with your quote request, so the coverage is built to match what each one asks.