Action Required: Provide proof of liability insurance coverage


I keep getting this email ( telling me to purchase liability insurance for my products. And “SURPRISE” they just so happen to have a company that will provide the perfect coverage for this. Has anyone delt with this. The email address looks a bit sketchy and I dont have any reason to purchase liability insurance for my products.


Nearly every seller has dealt with this and if you do not provide the proof of insurance as they have asked you will find your account suspended.

If you will actually read what you agreed to when you signed up to be a seller on Amazon you will find that the insurance was required at that time but Amazon is just now inforcing that requirement.


Amazon providing a list of accepted insurers is a convenience for you. You are very welcome to use your own. It is because many sellers had no clue where to start.

I fully expect that Amazon receives a commission for those accounts that get set up and you might even pay more than their standard rate to cover that commission.

If Amazon has identified your account as one that requires liability insurance, if you do not comply within the timeframe they identified (about 30 days), you account will get suspended until you do.

You do not get to choose to not buy the insurance because you “don’t have any reason”.

The requirement is that you have sales more than $10k.

The reason Amazon requires it is because there were a bunch of idiots who thought like you and bought junk from Alibaba that ultimately resulted in litigation and since they did not have insurance and went bankrupt, Amazon got stuck holding the bag and paying out the settlements. So, they will not let you get away with it either.

Unless you are 100% certain that your assets (including your home - since you prefer to be self-insured) will cover insurance claims from customers, competitors, competing brands, or anyone else who even thinks that they have a case to make a claim against you for hurting them or their business in any way, it is very likely that the first time a lawyer contacts you, you can expect to be paying at least $10K in legal fees to fight the claim and likely more than double that amount in fines, penalties, settlement and court fees if the claim gets to trial.


Why yes, we have. Amazon’s ASBSA has always required All Sellers to maintain commercial liability, and at particular thresholds of volume to provide an ACORD 25 proving Amazon is named as an additional insured. Amazon has recently invoked a clause in Section 9 demanding proof outside of the volume thresholds.

So the insurance was always universal, the documenting Amazon is named as an additional insured is at least right now at this moment apparently also universal. You can use any underwriter/agent/broker you chose, but since apparently this is a new concept to quite a few Sellers, Amazon has partnered with a guy as a way to help those Sellers that can’t read and abide by a contract good.


It came up in August…


The email address is legitimate and even occasionally logging into seller central and reading important news and policy changes would have prevented you from being “surprised”.

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