According to Amazon Seller Central, starting from September 2021, sellers with a gross sales revenue of USD 10,000 in any month are required to obtain commercial liability insurance with limits of at least USD 1 million. The liability insurance policy must also name Amazon as an additional insured party.
Amazon may ask for payment for the expenses incurred in handling claims if a seller doesn’t have commercial liability insurance. In addition, until the seller purchases a commercial liability insurance policy, Amazon may limit the sellers’ sales activity or even deactivate their accounts.
The expected yearly revenue of the sellers, the products they offer, and a number of other factors affect how much their Amazon liability insurance plans will cost. General liability insurance policies that cover up to EUR 1 million cost, on average, between EUR 500 and EUR 1,000 annually.
Amazon US and AU sites require sellers to obtain commercial general liability insurance, while EU and UK sites, sellers have the responsibility to purchase public third-party liability insurance in connection with each Amazon Site. Sellers have the option of purchasing excess liability, umbrella, or commercial general insurance.