What Are Amazon Seller Insurance Requirements?


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While Amazon Seller Central has a lot of features that make running your business from home easier, there are some limitations. If you want to ship larger orders or items with high value, you need to be aware of insurance requirements. In this guide, we’ll cover everything you need to know about Amazon’s insurance policy and how it can help protect your business.

Understanding the difference between Amazon insurance requirements and Amazon’s insurance policy options will set you up for success as an Amazon seller

Amazon’s insurance requirements are different from Amazon’s insurance policy options. The second you sign up to sell on Amazon, you must have some form of coverage in place. While the minimum required level of protection varies by product category, there are some standard requirements that apply to everyone selling on Amazon:

  • Business liability insurance ($2-5 million)
  • General liability insurance ($1-3 million)

Basic Amazon seller insurance requirements

Basic insurance requirements for selling on Amazon

If you want to sell your products on Amazon and get paid by the retail giant, you need to meet the basic insurance requirements for selling on Amazon. These are the minimum coverages that Amazon requires all sellers to have:

General liability

this protects you against claims arising from bodily injury, property damage or personal injury caused by your business operations. It also covers third-party goods that are damaged while in your possession during business hours. For example, if a customer slips and falls in one of your warehouses due to poor lighting or wet floors, they can sue you for compensation under general liability coverage. The good news is that most professional sellers already have this coverage in place through their general business insurance policy (aka commercial general liability).

Business income or extra expense

this covers any losses sustained due to loss of inventory due to natural disasters (floods) and other disasters including warehouse fires etc., or equipment failure resulting from theft and vandalism among other things including employee theft/fraudulent acts committed against an insured’s accounts receivable account balances which could occur through computer hacking attempts, etc. These losses need not be permanent; they just need not be covered by another type of policy such as property-casualty which is often tied up with home owner’s association (HOA) dues payments too!

First-party coverage protects against canceled orders and lost revenue.

First-party coverage protects against canceled orders and lost revenue. This type of seller insurance protects you in the case of a customer dispute so that you can reimburse yourself for any losses associated with the order. First-party coverage is also called direct loss protection and is one of the most commonly used types of seller insurance on Amazon.

First-party coverage is not available for every product or category, but if you’re looking into getting some seller protection for your business here are some things to keep in mind:

  • You’ll need to buy a policy before listing your products on Amazon. Once they’re listed and someone buys them, it’s too late! (Note: this rule doesn’t apply if the item was already sold before you purchased insurance.)
  • You’ll need proof of purchase at all times because policies usually require it before they will reimburse lost revenue due to canceled orders or returns.
  • If you find yourself in a situation where you need to file a claim, be sure to follow the steps outlined in your policy. You can’t just email or call in and expect the seller’s insurance to cover you!

Third-party seller insurance policies include:

The other option is to purchase third-party seller insurance. This coverage can be an effective way to protect your business against the financial consequences of an accident or damage in transit. But before you jump at the coverage, there are some things you should know about it—and they include:

  • The limitations of third-party seller insurance policies may not be enough for your business needs. For example, if a customer claims that something broke in transit and wants their money back, you’ll have to pay out-of-pocket if the item was insured by your carrier and not by Amazon.
  • First-party seller policies used to provide more protection than they do today; however, that can still vary depending on what kind of first-party policy you choose (and whether or not it’s purchased from Amazon).
  • Your insurance provider may have to pay out-of-pocket if the item is damaged or lost in transit. This can be costly, so you’ll want to weigh the cost of purchasing insurance against how much it would cost for you to replace the item if something happens to it.

Coverage for FBA inventory damage.

For example, if a customer complains about receiving a damaged item from you as an FBA seller, and Amazon decides to accept the claim against your account, coverage for FBA inventory damage will pay for the cost of replacing that item and any associated fees. However, if there are no claims made on your account or by you against yourself (for example, if you accidentally break a product), then this insurance will not pay out anything.

FBA sellers should also consider fully insuring their fulfillment centers in case of theft. In instances where customers file complaints against sellers due to theft at their fulfillment centers, they may be held liable even though they were not responsible for the crime; this is where third-party insurance comes into play. If a customer files an order with Amazon stating they were given what appears to be stolen goods by another third-party seller and delivers them back to Amazon’s warehouse via FBA (fulfilled by Amazon), then coverage will kick in here as well—even if it was someone else who stole those items from another seller’s fulfillment center!

Coverage for FBA inventory theft.

First-party coverage protects against canceled orders, lost revenue, and product liability. It’s available to all FBA sellers, but only if you’re selling high-value items that are difficult to re-stock or replace. You can purchase first-party coverage for all your items or just some of them; the latter option is known as partial inventory protection (PIP).

First-party insurance covers up to $20 million in damages per incident. This means that if someone steals your package and sells it on eBay for cheap (or destroys it altogether), and then gets caught before they return your money—you can claim reimbursement from Amazon under this policy. If you don’t want individual packages stolen by thieves in transit, consider adding a tracking number and signature requirement when shipping with Fulfillment by Amazon (FBA). You’ll also need a registered address where these shipments should be sent so there’s no confusion about who owns them in case something goes wrong along the way.

Coverage for your fulfillment center.

Amazon Seller insurance for fulfillment centers is a policy that covers the product you are selling. If someone mistakenly buys your products instead of the ones they intended to buy, then you would be reimbursed for the lost sale. There are different types of policies depending on how much coverage you want and how much money you want to spend on protecting your products against theft and damage in transit.

These policies can also cover the issues with shipping delays, if customers receive their orders late due to weather conditions or other reasons out of control by Amazon sellers themselves, they will have an option under these policies where they can ask for reimbursement from their insurance provider who will decide whether or not they should get paid based on what happened during shipping process itself as well as information provided by both parties involved (buyer/seller).

Some third-party listings are ineligible for coverage.

Amazon only covers third-party sellers who have a business and are registered to do business in the United States.

  • Third-party sellers must provide proof that they’re actively selling on Amazon as authorized, professional sellers. They will be asked for a copy of an invoice or contract showing their agreement with Amazon, as well as invoices from any third-party suppliers used to fulfill the sale (such as FBA).
  • The product being sold must be shipped by Fulfillment By Amazon (FBA) or another service provider approved by Amazon. The product cannot be shipped directly from the manufacturer or supplier unless it was done so before you were approved for insurance coverage.
  • The product must be sold by a third-party seller. Products that are sold by Amazon itself aren’t eligible for insurance coverage. The sale must have been processed through the Amazon Marketplace: products sold directly to consumers or outside of the marketplace aren’t eligible either.


In conclusion, the Amazon seller insurance plan is a great way for sellers to protect themselves and their businesses. The policy provides coverage against losses that may be caused by either a customer or an Amazon employee. It also covers lost items in transit and more. The only way to get coverage is by purchasing the Amazon seller insurance plan. So if you’re an Amazon seller, make sure that you’re covered!


How do I upload proof of insurance to Amazon?

To upload proof of insurance to Amazon, you will need to open your account at Amazon.com, click on “Your Account” in the top right of the page, and then select “Insurance.” Here, you can add a new policy or update an existing one.

If you’re adding a new policy, you’ll be prompted to enter your vehicle information. Once you’ve done that and entered your personal information, click “Add Vehicle.”

You’ll then be directed to enter the required payment information (if necessary), as well as any other information needed for your specific policy type. You’ll also have the option to attach a PDF document containing your proof of insurance coverage.

When you’re done entering all of this information, click “Submit” and then confirm your submission.

Does Amazon require general liability insurance?

Yes, Amazon requires general liability insurance.

Amazon.com is a website that specializes in selling books, music, movies, and other goods. The company was first launched in 1994 by Jeff Bezos and has been growing ever since. As of September 2016, Amazon’s website had over 150 million products for sale.

In addition to requiring general liability insurance coverage for its employees, Amazon also requires that any independent contractors or vendors working on behalf of the company carry this type of coverage as well.

What type of insurance do you need for Amazon?

Amazon is a huge company, and it’s easy to see why so many people are asking this question.

Amazon has a lot of different kinds of insurance that can help your business stay protected. Here are some of the most common types:

  • Business insurance: This protects you against liability issues and other risks that can come up during the course of running a business.
  • Business interruption insurance: This covers loss of income if your business is shut down due to a fire or flood. It also covers expenses like temporary office space while yours is being repaired.
  • Commercial property insurance: This covers damage to your building or other property owned by your business, as well as any liability issues related to it.


Picture of Zeeshan Riaz <br> <span class="designation">Chief Operating Officer</span>
Zeeshan Riaz
Chief Operating Officer

With education and experience in IT. Law and E-commerce industry, I have successfully helped more than 250 E-commerce businesses worldwide to reduce their operational cost with cutting edge eCommerce Marketing Services. I do manage a team of more than 250 people team which includes Amazon, eBay, Shopify, website development, SEO and SMM experts.

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