Amazon's $1M insurance rule is now in force. Here's who it catches.

Amazon's updated commercial liability insurance requirements took effect on Monday, November 2, 2026. If you sell anything Amazon classifies as an enhanced safety product, you now need a $1 million policy on file regardless of how little you sell.

The old threshold of $10,000 in monthly gross proceeds still exists for everyone else. For children's products, cosmetics, ingestibles, lithium battery products and the rest of the enhanced-safety list, the threshold is gone.

Most brands we work with already carry this coverage. What's new is that a rule Amazon has historically enforced loosely now has a specific trigger, a specific date, and a list of categories that happen to be where consumables, beauty and pet brands live.

What Amazon changed, in its own words#

Amazon announced the change on September 3, 2026 through its News_Amazon account on the US Seller Forums. Three things are in it.

The existing rule is unchanged. Under the insurance section of the Business Solutions Agreement, a seller must obtain and maintain commercial liability insurance within 30 days of gross proceeds from Amazon.com sales exceeding $10,000 in any month. Minimum coverage is $1 million per occurrence and in the aggregate.

The first new requirement is product-based. Sellers with products in categories that have enhanced safety listing requirements must maintain a policy covering those products, at the same $1 million minimum, "regardless of whether they meet the USD 10,000 gross proceeds in a month threshold." Amazon says this applies to new and existing listings and names children's products, cosmetic and ingestible products, and lithium battery products, with a note that the list isn't exhaustive.

The second new requirement is location-based. Sellers based in Mainland China must obtain their insurance through the Amazon Insurance Accelerator, Amazon's program that connects sellers with pre-vetted insurers. In Amazon's words: "Starting November 2, 2026, we will reject newly submitted insurance policies that are not obtained through AIA." A valid third-party policy submitted before that date can be used until it expires.

Which categories are on the list#

Amazon's own announcement names three groups and points to its enhanced-safety requirements page, visible when you're logged in to Seller Central, for the full list. That page runs to eleven categories:

• Children's products, including toys, car seats and infant sleep products
• Consumable and ingestible products, including supplements, OTC medicine and cosmetics
• Lithium battery products, from rechargeable electronics to e-bikes
• General household devices such as air fryers, coffee makers and blenders
• Personal safety equipment, including helmets and harnesses
• Transport-related products such as tires
• Sleep products, including mattresses and adult bed rails
• Outdoor power and heating equipment
• Home medical devices such as walkers and respiratory supplies
• Fire-related products, including extinguishers and alarms
• Water and marine safety products, including life jackets and pool covers

Amazon says on that page that the list isn't complete and will grow. If you sell in consumables, beauty, pet supplements or anything with a battery in it, assume you're in scope and go confirm.

What a compliant policy has to look like#

The requirements page sets out a list of criteria. PPC Land's write-up summarizes the ones that trip people up: the policy has to be written on an occurrence basis, it must cover all sales from your listed products, it must name Amazon.com Services LLC and its affiliates and assignees as additional insureds, the insurer must give Amazon 30 days' notice of cancellation, and the carrier must be rated at least A- by S&P or AM Best. PPC Land puts the maximum deductible at $10,000; Amazon staff posts on the Seller Forums have described a stricter zero-deductible rule for smaller sellers, so check the live page for your account.

The carrier rating is the one we'd check first on a budget policy. A certificate from a lower-rated carrier uploads fine and then fails review.

What it costs, and why that matters for your listings#

For an established brand, nothing. You already have the policy. For a seller doing a few thousand dollars a month, it's a new fixed cost, and a fixed cost is what makes the arithmetic interesting.

The numbers below are ours, not Amazon's. Quotes through the Insurance Accelerator vary with category, revenue and carrier, so we've assumed a $1,500 annual premium as a round working figure and spread it across a year's units. Swap in your own quote and the shape holds.

That's the part we think matters most for brands. The sellers most likely to be caught by this are the small resellers, some of them unauthorized, who sit on supplement, cosmetic and pet listings at a few dollars under your price. Some will get a policy. Some won't, and we'd expect their listings to come down after the notification window. Either way it's a reason to run the reseller map again in December and see who's left.

If reseller control is a live issue on your account, the sequence that works is in our piece on pricing unauthorized resellers off your listings, and it's the core of what we do in channel control and brand protection.

What to check on your account#

Amazon's 2021 insurance rule was, by most accounts, lightly enforced. This one has a category list, a date, and a notification process attached to it. We'd treat it as real.