Amazon is requiring me to purchase liability insurance


What if something comes up and you need to use it?

Insurance is a business expense and can be written off on your taxes.

Anyone selling goods or services to the public should have insurance regardless of volume. Smart thing to do. Business 101


It’s a tax write off.


If a situation were to come up it would have already in the past 15 years of selling. I don’t sell products where there is any reasonable expectation that liability insurance would ever be necessary.

This doesn’t magically make it free.


What do you sell? Food? Medical? Vitamins? Beauty products? Toys?


Video games


Or it might come up next week.

I’m guessing you’ve never seriously injured someone in an auto accident that is your fault (and I hope you never do!), but you still carry insurance in case you do, right? Or do you try to argue that because you’ve not hit anyone in 15 years, you won’t hit anyone in the future?

I sell books. Hard to imagine a product less likely to cause harm. But what if I unknowingly sell a book that is infected with a toxic mold? Or has insect eggs that cause a plague? These are certainly things that I try to avoid, but nothing (and nobody) is perfect; the unthinkable could happen.
And in case it does, Amazon wants to make sure that they are not the ones that end up paying when there is a lawsuit.
You’re selling on their site. Many buyers won’t even realize that they are not buying directly from Amazon; even if they do, Amazon is still a party in the transaction, even if you ship from your kitchen table. They want to be protected.

On the bright side, if there really is no " reasonable expectation that liability insurance would ever be necessary", it should be really cheap; if you have a policy covering your B&M store, adding Amazon will likely cost no more than a processing fee, or maybe a few dollars per month.


Auto insurance is not a fair comparison because it is legally required. Rental car insurance, on the other hand, which is optional, is worthless in some cases and something I would definitely argue against ever purchasing.

Everyone has different levels of acceptable risk. If this is how you rationalize paying for liability insurance then that’s your decision, but to me that’s insane unless you deal in large amounts of inventory where you feel there is a high likelihood of such an event occurring.


Free of what? The outlay cost’s piddling impact upon interest-bearing financial instruments ere that is recompensed?

There’s a reason why a single-volume representation of our Tax Code is among the thickest tomes ever produced by Humankind (if not THE thickest) - and why the all-too often execrable practices of the Legal, Financial, and Insurance Industries, propped up as they are by We The People’s failure to pay attention to what REALLY matters, so oft’ produce the complaint which you’ve voiced once we see exactly how our Political leaders placed this or that hand, deeply, into our own pockets.

The bottom line, in regards to the Professional Conduction Of Business, remains what it has always been throughout all of Recorded History, and undoubtedly well before, as is evident in just why this hoary old saw has passed into so many lexicons all around the globe:

It takes money to make money.


I’d also like to add that if you happen to recall the court proceedings following the 9/11 terrorist attacks when the airlines were sued because of the destruction caused by their aircraft, the courts found them not liable because the events that occurred as a result of the hijackings could not have been reasonably foreseen. While this is not an exact analogy, the point is you are expected to take reasonable steps to protect you and your business and this does not include preparing for things that are unprecedented or unthinkable.


Having been on this venue for a long time, the costs of operating here have increased substantially, particularly over the last several years. While this particular cost may seemingly be negligible, along side other new or increased costs we are now required to absorb selling here, ultimately continuing to make selling here more unappealing, particularly if you not investing to grow on this venue – this results in a higher percentage of overhead per item sold as Amazon simultaneously continues to take away more of our freedoms to operate our business on their venue. While a silver lining may eventually unveil it’s self, currently it does not exist.


Your point IS well-taken, my friend, but should we not recognize that the underpinning theme behind Amazon’s action in finally enforcing the Business Liability Insurance requirement - which has existed, in one form or another, in each and all of its various iterations of the ASBSA (“Amazon Services Business Solutions Agreement”) since early in the present century - is demanded by what our friends Medic, ThisIsTheWay, and ASV Vites astutely highlight upthread, at least from Amazon’s own POV?


One of us just slipped on a popular bumper sticker,
something about “Brandon”, that we purchased on Amazon.

Both of our hips are now broken and we have a painful
paper cut on our big toe.

This is going to take months of rehab and be very expensive.

Who is going to pay us for our pain and suffering?
Who is liable for this defective product?

As we formulate our frivolous law suit, it is comforting to know
that sellers on Amazon have 1,000,000 dollar business liability polices…
unless they are in China of course.

One more reason to buy American made… even if it costs you more
because at least your injuries, like putting gorilla glue in your hair, are covered.

Amazon is trying to protect itself first and by default its customers
by enforcing this insurance mandate.

This is why they do not allow Chinese sellers, who do not have insurance
and often engage in counterfeit products or products that contain toxic
chemicals, to sell their products on their site.


Sadly do I rue

That fact that it is most-always true

That before the day is through

I run out of ‘likes’

To cast anew.



It is required only if you wish to own a car. If you don’t want to buy the insurance, you don’t have to buy a car.
Likewise, liability insurance covering Amazon is required only if you wish to sell on Amazon; if you don’t want to buy the insurance, then you simply don’t sell on Amazon. Problem solved.

Yes. And Amazon has defined their level.

You seem to be under the delusion that Amazon is somehow not legally involved when you use their platform to sell your product. If something happens, and you cannot cover your liability, then Amazon will be the next target. They don’t want to be the next target, so their level of “acceptable risk” means that they want you to be covered.


Yes, if you sell something that results in the death of thousands of people, and the destruction of millions of dollars of property, due to the mis-use of your product by outside sources, you will likely not be held liable for the full cost. So you don’t have to worry about this type of thing.

But Amazon wants to make sure that you are indeed preparing against the things that, while unlikely, are not impossible; therefore they want you to have insurance, so that Amazon is not held liable.

Perhaps a better analogy than your terrorist hijacking example is a contractor working on your house. Suppose you get a new roof; while installing it, one of the workers, despite ample safety precautions, falls off the roof and gets injured. Do you think that the contractor should have insurance covering such an unlikely event? Or are you fine with your homeowner’s insurance covering his hospitalization costs, and increasing your premiums as a result? Because if you hire an uninsured contractor, you might be held liable for injury.
Now magnify that by a million or more; that is what Amazon is looking at.

If you feel that having liability insurance is an “insane” requirement, then Amazon simply is not the place for you to do business.

I really don’t understand the outrage. My business insurance covers more than just product liability. But it’s still less expensive than more trivial things I pay for to run my business, like bookkeeping or scouting software subscriptions. Heck, I can spend more on gas in one day of sourcing inventory than I spend on insurance for a month (not that I do that every day)


A contractor getting hurt on the job is a foreseeable occurrence and likely a common liability insurance claim. Of course they should have liability insurance. You consider this a fair comparison to the possibility of a book containing mold, plague infested insect eggs? I don’t deal in books, so perhaps this is a more common occurrence then I would believe.

I sell (new) video games. Nothing comes to mind that I would need or want liability insurance for. Not everything is one size fits all.

Some how, I doubt the level of liability risk is uniform across all products, categories and sellers on the platform. Amazon issuing blanket requirements that do not account for the probability of such a claim arising based on seller volume or product category is not a popular form of policy. Amazon continues to show how little our relationship is valued at an individual level and I don’t think it should be unexpected that certain sellers would be upset at such a policy (enforcement).

Last I checked, Amazon still allows me the freedom to call a policy insane and continue to do business here.


There is nothing strange here. Having this is normal for any business owner.


I am not sure about other states but NY’s insurance is around 1k a year. hope this info can help!


Ask your existing insurance agent to add amazon, I did and they added them at no extra cost … took like 10 minutes


I pay $500/year for $110K/month sales.