In this small guide, I will talk about Amazon Seller Insurance, its Requirements, Factors, Importance, and costs.

In the initial days, Amazon was just a bookseller. With the hard work of 27 years and explosive growth, Amazon became the most extensive e-commerce retailer in the United States.

Amazon is one of the world’s most well-known shopping brands. Over 300 million peoples use amazon for shopping daily and spend more than $280 billion in sales. According to 2019 Stats, more than 2.5 million active sellers are working on amazon and selling their products in the marketplace.

When most sellers start selling on Amazon or when I start a business on Amazon, I often don’t realize that Amazon will require you must have liability insurance if you are a professional trader.

If you are willing to selling on Amazon, You should manage it like any physical business, and you should have the insurance to protect the company and your business.

Amazon Seller Insurance

Amazon’s Insurance Requirements

There are two primary kinds of sellers on Amazon: individual sellers and Pro Merchants. Naturally, individual sellers have fewer insurance requirements than Pro Merchants. Still, many sellers think that Amazon takes on all the responsibility. Still, the platform requires sellers to have product liability insurance to be a Pro Merchant. 

There are two main types of Amazon sellers: individual merchants and Pro sellers. Usually, Pro Merchants have more insurance requirements than individual sellers. Still, usually, sellers think that all of the responsibility of your product is on Amazon, but it is not the truth; Amazon requires product liability insurance, especially for Pro Merchants.

For an Individual seller account, Having insurance is highly recommended, but it is not compulsory for individual sellers.

For a Pro seller, Amazon needs merchants to give proof of their liability, umbrella, and excess liability insurance.

Factors of Insurance

Amazon has not had many insurance requirements for sellers, but there are various policies merchants should consider making sure their business’s advantage: 

General Liability

General liability gives complete protection against some of the most primary risks faced by companies. Known as “slip-and-fall” or “all-risk” insurance, this policy includes all personal or property loss and entirely injury happening on the business axioms.

Product Liability

Companies providing physical products or services risk third-party prosecutions alleging injury or property loss ultimately. Suppose McDonald’s famous “Hot Coffee” case in the 1990s, for example. No matter if the requirements are grounded or not, this policy includes all protection fees and arrangements.


Whether it’s a natural disaster, robbery, or fraud, property insurance returns, this policy pays companies for personal property losses.


Delivery drivers and couriers usually use their wheels to deliver products off to buyers. This coverage defends against losses provided by workers when they use personal wheels for business prospects. 

Transportation Insurance

Many companies transfer goods through the airways, seaways, or land, bearing the risk of theft. Loss and other accidents. This policy defends company property loss when it is in transition or reserved offsite.

Explaining the details of what coverage your business requirements can be a difficult process. Business owners Should train in knowing the risks your business faces to ensure you have enough protection. 

Why do you need insurance to sell on Amazon?

If you are a new or pro seller, you seemingly did not understand that Amazon, at some time, needs to get product liability insurance.

You may be considering Amazon is responsible for any loss, but it is totally wrong. Amazon does not have the responsibility for your product, you should have the proper insurance.

The purpose behind having Amazon insurance is to protect your business assets and include any financial responsibilities following from accidents, damages, or theft.

How Much Does Amazon Seller Insurance Cost

The standard cost for the needed $1,000,000/$2,000,000 General Liability policy for Amazon sellers varies from $23 to $59 monthly based on products offered, location, total sales, and experience.