Amazon Insurance Requirements UK

Amazon insurance requirements apply to eligible sellers and can also be triggered if Amazon specifically requests proof of insurance. The requirements usually focus on commercial liability insurance, policy limits, suitable documentation and insurer quality.

Key Points Sellers Need to Know

• Amazon may require commercial liability insurance once the relevant threshold is met.
• The required limit is typically at least $1 million per occurrence and in aggregate.
• The policy may need to cover all products listed on Amazon.
• Amazon may need to be named as an additional insured.
• The insurer may need suitable claims-paying ability and documentation standards.

When Amazon May Ask for Insurance

Amazon’s published framework currently refers to insurance becoming necessary within 30 days after a seller exceeds the stated monthly sales trigger, or earlier if Amazon specifically asks for proof. In practice, sellers can also feel pressure after account reviews, complaints, category changes or growth into more sensitive product classes.

This is why many sellers decide to arrange cover before they are forced into a short turnaround. Waiting until Amazon asks can create unnecessary urgency, especially where imported goods, FBA, own-brand products or overseas territories need to be underwritten properly.

What Amazon Is Really Looking For

Amazon is not just asking whether you have “some insurance”. It is asking whether the policy is suitable for the business being run through the platform. That means the limit, the activity description, the territories, the product types and the policy documents all matter.

• The business description should reflect Amazon selling accurately.
• The cover should respond to the actual products listed on the account.
• The territories of sale should be declared properly.
• The documentation should be capable of standing up to Amazon review.

Why Sellers Get Caught Out

Problems often arise because the seller’s policy is not set up with the right business description, does not address the products being sold, or cannot satisfy Amazon’s documentation request quickly enough. Another common issue is assuming a generic startup or online retail policy will automatically satisfy Amazon, even where imports, private label exposure or US sales are involved.

Sellers also get caught out when the policy is technically in force but the account name, insured entity, product class or territorial scope does not line up neatly with what Amazon expects to see.

Common Documentation Problems

• The insured name does not match the Amazon seller entity clearly enough.
• The certificate does not show the relevant liability section or limit properly.
• Amazon is not shown where the request requires additional insured wording.
• The policy appears to exclude imported products or key territories.
• The insurer asks follow-up questions before documents can be finalised.

What Happens If You Do Not Comply

If Amazon is not satisfied, sellers can face listing restrictions, requests for resubmission, delays in approval or account suspension. Even where the commercial interruption is temporary, it can still affect revenue, advertising efficiency and account momentum.

Separate from Amazon’s action, the underlying liability risk remains. A seller without suitable cover may still have to deal with legal defence costs or compensation demands if a customer alleges injury or property damage.

How Insure24 Can Help

We can help you obtain or review cover for Amazon selling, explain what underwriters will want to know, and support you with the information needed when Amazon requests proof. That can be especially helpful where the business includes imported goods, private label products, FBA or overseas marketplaces.

FAQs

When does Amazon require insurance?

Amazon’s published rules state insurance is required within 30 days after exceeding the threshold or if Amazon otherwise requests it.

What level of liability cover is required?

Amazon’s current published requirement refers to at least $1 million per occurrence and in aggregate.

Does Amazon need to be named on the policy?

Amazon’s current documentation requirements include naming Amazon as an additional insured.

Will any small business insurance policy do?

No. The policy still needs to match the way the Amazon business trades, including products, territories and any imported goods exposure.

What if I sell in the UK and the US?

Your territorial cover becomes much more important, and not every insurer will accept that exposure on the same basis as UK-only trading.