sellershortsAmazon Insurance Rules Hit Nov 2: Who Needs $1M Coverage
Amazon is dropping the $10,000 sales threshold for 11 enhanced-safety categories and forcing China-based sellers to buy through its own program. Here is who must act before the deadline.
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Quick Answer
Two insurance changes start on November 2, 2026. First, if any of your live listings are in one of Amazon's enhanced-safety categories, you need a $1 million commercial liability policy for them, even if you sell very little. Second, sellers based in Mainland China can no longer use their own insurer for new policies. They must go through Amazon's program instead.
- Low sales no longer keep you out. In these categories, the old $10,000 monthly limit does not exempt you anymore.
- One listing in scope is enough. Old listings count the same as new ones.
- China-based sellers must use Amazon's program for any policy submitted after the deadline.
- Start early. Getting a policy takes time, so do this now, not at the last minute.
Many smaller sellers have never carried a liability policy, and until now that was fine. The rule was simple: stay under $10,000 in sales in any single month and Amazon did not ask for coverage. From what we see in seller questions across the marketplace, that one number is what most people relied on.
November 2 removes that safety net for one group of sellers. The rest of this guide follows the steps you would actually take: check if you are affected, price a policy, get the details right, handle the China rule, and think about whether Amazon will enforce it.
Reviewed by the SellerShorts editorial bench against Amazon's published insurance requirements and current industry monitoring of the November 2 policy change.
First Question: Are You Affected?
Most sellers will not be. This rule only applies if you have at least one live listing in a category Amazon calls enhanced-safety. So start there, before you worry about any paperwork.
The mistake is thinking low sales keep you out. They used to. A shop selling a few hundred dollars a month of a kids' item or a battery-powered product was under the old limit. After November 2, that same shop is affected and needs the full $1 million policy for those products. How much you sell no longer matters in these categories.
- Old listings are covered too, not just new ones.
- Even one product in these categories pulls you in, even if it barely sells.
- The old $10,000 rule still applies. Cross it in any category and you need coverage within 30 days, as before.
The Two Rules in Plain Terms
It helps to see what is new versus what is just the same old rule. There are three things here, and only two of them changed.
| Rule | Status | Who it touches |
|---|---|---|
| $10,000 monthly trigger, $1M within 30 days | Unchanged, still live | Any seller in any category |
| $1M required from the first sale in scope categories | New Nov 2 | Sellers in enhanced-safety categories |
| New policies must come via Amazon's program | New Nov 2 | Mainland China based sellers only |
The old $10,000 requirement is part of Section 9 of the Business Solutions Agreement every seller already signed, and that part is not changing. All that changes on November 2 is which sellers now need coverage.
The Category List Is Bigger Than It Looks
Amazon's announcement only names three examples: children's products, cosmetic and ingestible products, and lithium battery products. Do not assume those three are the whole list. That is where sellers get caught out.
Independent trackers put the real count at about 11 categories, including things like supplements, small kitchen appliances, mattresses, and tires. The safe move is to skip the short example list and check the live category page against your own products.
| Spelled out by Amazon | Also reported in scope |
|---|---|
| Children's products | Supplements |
| Cosmetic and ingestible products | Small kitchen appliances |
| Lithium battery products | Mattresses and tires |
Do not treat the table above as final either. It is a summary of what is being reported. The real source is Amazon's own enhanced-safety category page on the day you check it.
What a Valid Policy Must Include
If you are buying liability coverage for the first time, the exact details matter as much as having a policy at all. A policy that is close but not exact can still be rejected. Here is what it needs:
- At least $1 million per occurrence and $1 million in aggregate, written as general, excess, or umbrella liability.
- An occurrence-based policy, not a claims-made one.
- A deductible no higher than $10,000.
- Coverage spanning every product you sell on Amazon.
- "Amazon.com Services LLC and its affiliates and assignees" listed as additional insureds.
- An insured name that matches your Amazon legal entity name exactly.
- An insurer that can handle claims worldwide.
What It Might Cost
Nobody can give you an exact price from a blog, but reported figures give you a rough idea. Industry coverage of Amazon's insurance program showed annual quotes between $837 and $2,200 for sellers making $500,000 to $1,000,000 a year. At least one insurer in that reporting refused to cover products made in China.
Those numbers came before this change, so treat them as a rough guide, not a promise. If you are a small seller only now being pulled in, plan for real cost and real time to get set up, not a quick five-minute sign-up.
| What was reported | Figure |
|---|---|
| Annual quote range | $837 to $2,200 |
| Seller revenue those quotes assumed | $500,000 to $1,000,000 |
| Notable caveat | One insurer refused China-made products |
If Your Business Is Based in China
This is the smaller of the two new rules, but the harder one for the sellers it affects. After November 2, a new policy from a Mainland China seller is rejected unless it was set up through Amazon's own insurance program. The option to use an outside insurer closes for new policies.
There is some time built in. If you already have a valid third-party policy on file that you submitted before the deadline, it keeps working until it expires. The rule only applies when that policy runs out and you go to renew.
- Everyone outside China can still pick their own insurer. Amazon's program is optional for them.
- China-based sellers keep an existing policy until it expires, then must switch to Amazon's program.
- What this means: Amazon now controls which insurers can cover a large part of its sellers.
Will Amazon Actually Enforce It?
It is fair to ask whether Amazon will really check this. There is a reason to be doubtful: Amazon tightened its insurance rules back in 2021, and most sellers reported little to no enforcement. Whether November 2 is different is not known yet.
Even so, the math is one-sided. Getting covered costs a few hundred dollars and some paperwork. Guessing wrong, if Amazon does start taking listings down, could mean losing your products right before Q4. When the downside is that big, buying the policy is the safer choice.
A Short Checklist for This Week
Do these steps in order and you will not waste money or time:
- Check your catalog first. Open Amazon's enhanced-safety category page and match it against every product, including low-volume ones you may have forgotten.
- Decide if you are affected. One live product in scope means you need the $1 million policy.
- Get quotes early if you are. A policy takes time, and one that is not active by the deadline does not help you.
- China-based? Check your expiry date. A valid policy from before the deadline is fine until it runs out.
- Check the details last. The limits, the occurrence-based type, the $10,000 deductible cap, the additional-insured wording, and the exact business name all have to match.
Bottom Line
It all comes down to one catalog check. Match your products against Amazon's enhanced-safety list, and if even one is in scope, get a valid $1 million policy before November 2. Sellers based in China have the extra step of confirming their policy route and expiry date.
Since you are already going through your listings, it is a good time to tidy up the rest of your catalog. Our guides on building listings that convert and protecting your account health go well with a compliance check, so one fix is not the only thing keeping your products live.
References
Frequently asked questions
When do these new Amazon insurance rules take effect?
Do I need insurance if I sell under $10,000 a month?
Does the new category rule apply to my existing listings?
How much coverage do I need to carry?
What if I am a China-based seller with a valid policy already?
Which product categories are affected?
Who has to name Amazon on the policy?
Will Amazon actually enforce this?
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