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A little seller, a million-dollar policy

Peeps, Amazon has a new rule rolling out on November 2, 2026, and this one doesn’t care whether you’re crushing seven figures or celebrating your first hundred-dollar day. Certain product categories will require commercial liability insurance with at least $1 million in coverage, even when the seller is nowhere near Amazon’s familiar $10,000 monthly sales threshold.

Now, before you panic and call every insurance broker in the country, let’s get the facts straight. This is not a universal rule saying every Amazon seller must suddenly buy a new policy from the first sale. The new threshold-free requirement is aimed at products covered by Amazon’s enhanced safety listing requirements.

Amazon specifically points to categories including children’s products, cosmetic and ingestible products, and lithium battery products. Its official category list is the place to check whether an individual listing is included. New listings and existing listings are both in the mix.

What Changed, and What Stayed?

Under Amazon’s existing rule, sellers generally must obtain and maintain qualifying commercial liability insurance within 30 days once gross Amazon.com sales proceeds top $10,000 in any month. The required minimum is $1 million per occurrence and in the aggregate.

That rule is still here. Amazon has added another path into mandatory insurance: sell an affected enhanced-safety product, and the sales threshold no longer determines whether coverage is required.

Think of it like a nightclub with two entrances. Hit the revenue number, you’re in. Sell a higher-safety-scrutiny product, you’re also in.

Why would Amazon do that? The company says the changes are designed to help protect customers and reduce the financial impact of product-related incidents. When a battery malfunctions or a children’s product causes harm, the damage doesn’t politely wait until the seller becomes a six-figure business.

There’s a Second Change for China-Based Sellers

Amazon also introduced a distinct insurance sourcing rule for sellers based in mainland China. Beginning November 2, newly submitted policies for those sellers must be obtained through the Amazon Insurance Accelerator (AIA). The program connects sellers with a network of insurers vetted for Amazon’s requirements.

Already-submitted, valid third-party policies from before November 2 can remain in place until they expire. After expiration, affected mainland-China-based sellers need to follow the AIA route.

This is a separate requirement. Don’t accidentally tell a US or European seller that every merchant worldwide must use AIA. That would be one expensive misunderstanding.

Your Pre-November 2 Checklist

Start with your catalog, not your bank card. Identify any listings under enhanced safety requirements. Then compare the exact product categories against Amazon’s official guidance. A seller with several brands or a mixed catalog might have only some listings affected.

Next, review your current coverage. Does the policy cover the actual products you sell? Is the minimum at least $1 million both per occurrence and in total? Are the policy details, insured entity, and submitted documentation consistent with Amazon’s requirements? A policy that looks good in a PDF isn’t helpful if the platform won’t accept it.

If you need a new policy, speak to an insurer or broker who understands ecommerce product liability and Amazon’s documentation standards. If you’re based in mainland China, factor in the new AIA requirement. And leave time for underwriting and corrections. The night before a deadline is not the time to discover your product category has exclusions.

Amazon is getting stricter about product risk, and sellers need to get sharper about the paperwork behind the listing. You can be a small seller with a big liability. That’s the whole point. Check now, not after the listing starts acting funny.

Original reporting / reference: https://sellercentral.amazon.com/seller-forums/discussions/t/287d5c33-8278-4802-ba69-2f58f7dda408?mons_sel_locale=en_US

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