Amazon Seller Insurance For Small Businesses And Marketplace Brands 
What types of insurance does an Amazon seller need?
Amazon Seller Business Insurance That Meets Platform Requirements and Protects Your Store
Selling on Amazon opens doors to a global marketplace but also comes with risks like product liability, shipment issues, or customer claims. With Amazon seller insurance, you’re protected against the unexpected. Whether you’re a small business or a growing brand, the right Amazon seller business insurance helps keep your store compliant, your products covered, and your reputation strong.
Business Owners Policy Insurance
Business owners policy insurance bundles commercial property insurance and general liability insurance coverages into one affordable package for small and mid-sized companies.
Best for
Customer bodily injuries
Damaged client property
Repair stolen property
General Liability Insurance
General liability insurance is essential for small businesses looking to protect themselves against common risks like bodily injury, property damage, and legal claims.
Best for
Slip-and-fall accidents
Damage to a customer's property
Claims of advertising injury
Workers Compensation Insurance
Required by law in many states, workers compensation insurance helps cover medical expenses, lost wages, and rehabilitation costs for on-the job injuries
Best for
Injuries sustained while working
Work-related illnesses
Medical expenses and rehabilitation costs
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, is designed to protect your small business from claims of negligence, missed deadlines, or unsatisfactory work.
Best for
Claims of missed deadlines
Lawsuits of inaccurate advice
Claims of misrepresentation
Cyber Insurance
Cyber insurance protects against the financial fallout of stolen data, system outages, and regulatory fines. It's strongly recommended if your businesses handles credit card numbers, email addresses, and other personal information.
Best for
Protect against hacking
Covering breach notification costs
Protections against malware
Commercial Auto Insurance
Commercial auto insurance covers the cost of accidents involving a vehicle owned by your business. Most states require this coverage for vehicles owned by a business.
Best for
Bodily injury in accidents
Property damage in accidents
Protections against uninsured motorists
Do I Need Amazon Seller Business Insurance?
Yes, if you sell products on Amazon, Amazon seller business insurance is not just recommended, it’s often required. Amazon’s terms of service state that once your sales reach a certain threshold, usually $10,000 in a single month, you must carry general liability insurance. This coverage protects both you and your customers from financial losses if a product you sell causes bodily injury, property damage, or other harm.
What Does Amazon Seller Insurance Cost?
Amazon seller insurance costs can vary, but generally, Gild Insurance customers’ policy coverages start at $250 annually.
Here are a few factors that can affect your Amazon seller insurance costs:
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Business Location – Where your operations or inventory are based can impact coverage requirements and rates.
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Sales Volume – Higher sales typically mean higher liability exposure, which can influence premiums.
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Type of Products Sold – Certain products, like electronics or supplements, carry more risk than others.
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Business Size and Revenue – Larger operations or higher monthly sales may require more coverage.
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Claims History – A history of product or liability claims can increase your insurance costs.
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Inventory Value – The total worth of your stored products affects property and product protection needs.
The best way to find your Amazon seller insurance cost is to get a free, online quote in minutes!
What Kind Of Insurance Do You Need For Amazon?
To meet Amazon’s requirements, your Amazon seller insurance must include specific protections and documentation. At a minimum, a general liability insurance policy must provide at least $1 million in coverage per occurrence and in aggregate and must:
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Name “Amazon.com Services LLC and its affiliates” as additional insureds
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Cover all products you sell on Amazon
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Be issued by an A- rated or higher insurer with global claim-handling capabilities
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Include a certificate of insurance (COI) uploaded to Seller Central
Get The Best Amazon Seller Insurance!
Amazon seller insurance is about more than just coverage, it’s about protecting your business and everything you’ve built. With Gild, you get more than a policy, you get a partner who understands e-commerce and provides the protection, tools, and support you need to stay compliant, secure, and growing.
Frequently Asked Questions
Amazon requires Professional Sellers who earn over a certain sales threshold to carry liability insurance. Core coverages include:
- General Liability – Protects against third-party bodily injury or property damage from your products.
- Business Owner’s Policy (BOP) – Bundles liability and property coverage to protect against customer injury claims and damage to your business assets.
- Product Liability Insurance – Critical for sellers; protects you if an item you sell causes harm or property damage.
- Cyber Liability – Valuable for protecting against data breaches, given e-commerce reliance on digital transactions.
How much does Amazon seller insurance typically cost?
On average, Gilders pay between $500-$1200 a year for protection.
Cost can vary depending on your:
- Location
- Size
- Value of Equipment and Tools
Gild will work with you to find the right tailored coverage that fits your budget and your needs.
Does insurance cover product liability, cyber threats, or inventory loss?
Absolutely, with the right policies in place:
- Product Liability protects against claims if a product you sell causes injury or property damage.
- Cyber Liability covers breaches, fraud, or hacks tied to customer data.
- Commercial Property or Inland Marine Coverage can protect your inventory stored in warehouses (though note that Amazon’s FBA warehouses only provide limited coverage, so supplemental insurance is wise).
Do Amazon sellers need insurance to avoid account suspension or comply with platform rules?
Yes. Amazon’s Business Solutions Agreement requires Professional Sellers exceeding $10,000/month in sales to carry insurance that meets specific requirements. Not complying can result in warnings or even account suspension.
Insurance also:
- Builds trust with buyers by showing you run a professional, stable business.
- Protects your assets and future sales against unexpected claims.
- Ensures you remain compliant with Amazon’s seller policies.
Let's Get The Best Insurance Your Business!
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