Why are low volume sellers being asked for Proof of Commercial Liability Insurance?
Amazon says that "To sell on Amazon, you must obtain and maintain a valid commercial liability insurance policy for all of your products once your gross proceeds in sales exceed USD 10,000 in any month, or if requested by us, as outlined in Section 9 of the Amazon Services Business Solutions Agreement."
But as a low volume seller that in the last 24 months averaged less than USD 2,500 per month, with not a single month exceeding USD 10,000, why are we being asked for commercial liability insurance? Any suggestions on how to get this requirement waived?
Why are low volume sellers being asked for Proof of Commercial Liability Insurance?
Amazon says that "To sell on Amazon, you must obtain and maintain a valid commercial liability insurance policy for all of your products once your gross proceeds in sales exceed USD 10,000 in any month, or if requested by us, as outlined in Section 9 of the Amazon Services Business Solutions Agreement."
But as a low volume seller that in the last 24 months averaged less than USD 2,500 per month, with not a single month exceeding USD 10,000, why are we being asked for commercial liability insurance? Any suggestions on how to get this requirement waived?
31 replies
Seller_Kxzz9Efyh3v5d
Update: From today's chat, the Amazon associate said that even if your sales were to drop to zero, as long as Amazon asks you to provide Liability Insurance, you still have to provide it, as no one from Amazon can override or waive this requirement.
Does this mean that when your sales volume has dropped and no longer enough to carry the annual cost of this insurance, your only recourse is to close your account, as they would never waive this requirement ever ???
Seller_pixSY1g97J4aL
Every seller who sells to consumers should be required to maintain product liability insurance. Just because you are a smaller seller it doesn't make your product any less risky for consumers. In fact it probably makes it more risky because the sellers are less likely to invest in product safety checks, stock and warehouse systems and regulatory consultants to review the product and compliance with US law
Seller_HP0CuTSNvJvu9
liability insurance is so cheap, why wouldn't you have it anyway?
Seller_HP0CuTSNvJvu9
I have a disdain for political and religious discussion anymore, and my concern with what kids are exposed to swings far in the other direction, but you're right. This is one of a billion possibilities of why you could find yourself in financial trouble for hurting someone; even if it's just their feelings.
Seller_Y7cZgoEySM6pt
The operative word is: OR in the statement "USD 10,000 in any month, OR if requested by us,"
Seller_2srXkS44rN39i
There was a glitch last July where I was suddenly requested to provide it, but the wordage seemed to imply I had been ignoring previous requests. (I hadn't gotten any before). I was given a month to provide it, but nothing happened when I didn't. I *have* had liability insurance for years, but I didn't want to add Amazon as an additional insured unless absolutely necessary. (my insurance charges extra for that, and at some point, my sales will drop where I might not carry it at all anymore - I didn't want to be forced to if I'm only selling $10k a year on here.).
Make sure the message wasn't a glitch and get confirmation that it really is needed.
Seller_dkvNFPkFjSVLg
Because Amazon is moving to only real businesses as sellers, not hobbyists from their home.
If you want to play - follow the rules and play fairly against us that ARE doing everything required.
Seller_6JiriadV4sXsm
It's a blatent money grab.
I keep getting an insurance rejection for a policy that's been previously accepted for many years. The reason for rejection keeps changing and I think that I'm being forced into buying an overpriced and lesser quality policy so that Amazon can get a kick back. I'm upset that this is happening and from checking the forums I'm not alone. Amazon is at war with small american business.
Latest Rejection Reason after first "appeal" (March 9th, 2025):
-- Your policy is missing the signature of the authorized representative or company seal.
Previous Rejection Reason (March 4th, 2025):
-- The proof of insurance that you provided indicates that your policy is not written on an occurrence basis.
Both of these of course are bogus reasons for rejection. The policy provided is the very definition of an occurrence basis policy and the policy has the Erie Insurance logo all over it.
Why are low volume sellers being asked for Proof of Commercial Liability Insurance?
Amazon says that "To sell on Amazon, you must obtain and maintain a valid commercial liability insurance policy for all of your products once your gross proceeds in sales exceed USD 10,000 in any month, or if requested by us, as outlined in Section 9 of the Amazon Services Business Solutions Agreement."
But as a low volume seller that in the last 24 months averaged less than USD 2,500 per month, with not a single month exceeding USD 10,000, why are we being asked for commercial liability insurance? Any suggestions on how to get this requirement waived?
Why are low volume sellers being asked for Proof of Commercial Liability Insurance?
Amazon says that "To sell on Amazon, you must obtain and maintain a valid commercial liability insurance policy for all of your products once your gross proceeds in sales exceed USD 10,000 in any month, or if requested by us, as outlined in Section 9 of the Amazon Services Business Solutions Agreement."
But as a low volume seller that in the last 24 months averaged less than USD 2,500 per month, with not a single month exceeding USD 10,000, why are we being asked for commercial liability insurance? Any suggestions on how to get this requirement waived?
Why are low volume sellers being asked for Proof of Commercial Liability Insurance?
Amazon says that "To sell on Amazon, you must obtain and maintain a valid commercial liability insurance policy for all of your products once your gross proceeds in sales exceed USD 10,000 in any month, or if requested by us, as outlined in Section 9 of the Amazon Services Business Solutions Agreement."
But as a low volume seller that in the last 24 months averaged less than USD 2,500 per month, with not a single month exceeding USD 10,000, why are we being asked for commercial liability insurance? Any suggestions on how to get this requirement waived?
31 replies
31 replies
Seller_Kxzz9Efyh3v5d
Update: From today's chat, the Amazon associate said that even if your sales were to drop to zero, as long as Amazon asks you to provide Liability Insurance, you still have to provide it, as no one from Amazon can override or waive this requirement.
Does this mean that when your sales volume has dropped and no longer enough to carry the annual cost of this insurance, your only recourse is to close your account, as they would never waive this requirement ever ???
Seller_pixSY1g97J4aL
Every seller who sells to consumers should be required to maintain product liability insurance. Just because you are a smaller seller it doesn't make your product any less risky for consumers. In fact it probably makes it more risky because the sellers are less likely to invest in product safety checks, stock and warehouse systems and regulatory consultants to review the product and compliance with US law
Seller_HP0CuTSNvJvu9
liability insurance is so cheap, why wouldn't you have it anyway?
Seller_HP0CuTSNvJvu9
I have a disdain for political and religious discussion anymore, and my concern with what kids are exposed to swings far in the other direction, but you're right. This is one of a billion possibilities of why you could find yourself in financial trouble for hurting someone; even if it's just their feelings.
Seller_Y7cZgoEySM6pt
The operative word is: OR in the statement "USD 10,000 in any month, OR if requested by us,"
Seller_2srXkS44rN39i
There was a glitch last July where I was suddenly requested to provide it, but the wordage seemed to imply I had been ignoring previous requests. (I hadn't gotten any before). I was given a month to provide it, but nothing happened when I didn't. I *have* had liability insurance for years, but I didn't want to add Amazon as an additional insured unless absolutely necessary. (my insurance charges extra for that, and at some point, my sales will drop where I might not carry it at all anymore - I didn't want to be forced to if I'm only selling $10k a year on here.).
Make sure the message wasn't a glitch and get confirmation that it really is needed.
Seller_dkvNFPkFjSVLg
Because Amazon is moving to only real businesses as sellers, not hobbyists from their home.
If you want to play - follow the rules and play fairly against us that ARE doing everything required.
Seller_6JiriadV4sXsm
It's a blatent money grab.
I keep getting an insurance rejection for a policy that's been previously accepted for many years. The reason for rejection keeps changing and I think that I'm being forced into buying an overpriced and lesser quality policy so that Amazon can get a kick back. I'm upset that this is happening and from checking the forums I'm not alone. Amazon is at war with small american business.
Latest Rejection Reason after first "appeal" (March 9th, 2025):
-- Your policy is missing the signature of the authorized representative or company seal.
Previous Rejection Reason (March 4th, 2025):
-- The proof of insurance that you provided indicates that your policy is not written on an occurrence basis.
Both of these of course are bogus reasons for rejection. The policy provided is the very definition of an occurrence basis policy and the policy has the Erie Insurance logo all over it.
Seller_Kxzz9Efyh3v5d
Update: From today's chat, the Amazon associate said that even if your sales were to drop to zero, as long as Amazon asks you to provide Liability Insurance, you still have to provide it, as no one from Amazon can override or waive this requirement.
Does this mean that when your sales volume has dropped and no longer enough to carry the annual cost of this insurance, your only recourse is to close your account, as they would never waive this requirement ever ???
Seller_Kxzz9Efyh3v5d
Update: From today's chat, the Amazon associate said that even if your sales were to drop to zero, as long as Amazon asks you to provide Liability Insurance, you still have to provide it, as no one from Amazon can override or waive this requirement.
Does this mean that when your sales volume has dropped and no longer enough to carry the annual cost of this insurance, your only recourse is to close your account, as they would never waive this requirement ever ???
Seller_pixSY1g97J4aL
Every seller who sells to consumers should be required to maintain product liability insurance. Just because you are a smaller seller it doesn't make your product any less risky for consumers. In fact it probably makes it more risky because the sellers are less likely to invest in product safety checks, stock and warehouse systems and regulatory consultants to review the product and compliance with US law
Seller_pixSY1g97J4aL
Every seller who sells to consumers should be required to maintain product liability insurance. Just because you are a smaller seller it doesn't make your product any less risky for consumers. In fact it probably makes it more risky because the sellers are less likely to invest in product safety checks, stock and warehouse systems and regulatory consultants to review the product and compliance with US law
Seller_HP0CuTSNvJvu9
liability insurance is so cheap, why wouldn't you have it anyway?
Seller_HP0CuTSNvJvu9
liability insurance is so cheap, why wouldn't you have it anyway?
Seller_HP0CuTSNvJvu9
I have a disdain for political and religious discussion anymore, and my concern with what kids are exposed to swings far in the other direction, but you're right. This is one of a billion possibilities of why you could find yourself in financial trouble for hurting someone; even if it's just their feelings.
Seller_HP0CuTSNvJvu9
I have a disdain for political and religious discussion anymore, and my concern with what kids are exposed to swings far in the other direction, but you're right. This is one of a billion possibilities of why you could find yourself in financial trouble for hurting someone; even if it's just their feelings.
Seller_Y7cZgoEySM6pt
The operative word is: OR in the statement "USD 10,000 in any month, OR if requested by us,"
Seller_Y7cZgoEySM6pt
The operative word is: OR in the statement "USD 10,000 in any month, OR if requested by us,"
Seller_2srXkS44rN39i
There was a glitch last July where I was suddenly requested to provide it, but the wordage seemed to imply I had been ignoring previous requests. (I hadn't gotten any before). I was given a month to provide it, but nothing happened when I didn't. I *have* had liability insurance for years, but I didn't want to add Amazon as an additional insured unless absolutely necessary. (my insurance charges extra for that, and at some point, my sales will drop where I might not carry it at all anymore - I didn't want to be forced to if I'm only selling $10k a year on here.).
Make sure the message wasn't a glitch and get confirmation that it really is needed.
Seller_2srXkS44rN39i
There was a glitch last July where I was suddenly requested to provide it, but the wordage seemed to imply I had been ignoring previous requests. (I hadn't gotten any before). I was given a month to provide it, but nothing happened when I didn't. I *have* had liability insurance for years, but I didn't want to add Amazon as an additional insured unless absolutely necessary. (my insurance charges extra for that, and at some point, my sales will drop where I might not carry it at all anymore - I didn't want to be forced to if I'm only selling $10k a year on here.).
Make sure the message wasn't a glitch and get confirmation that it really is needed.
Seller_dkvNFPkFjSVLg
Because Amazon is moving to only real businesses as sellers, not hobbyists from their home.
If you want to play - follow the rules and play fairly against us that ARE doing everything required.
Seller_dkvNFPkFjSVLg
Because Amazon is moving to only real businesses as sellers, not hobbyists from their home.
If you want to play - follow the rules and play fairly against us that ARE doing everything required.
Seller_6JiriadV4sXsm
It's a blatent money grab.
I keep getting an insurance rejection for a policy that's been previously accepted for many years. The reason for rejection keeps changing and I think that I'm being forced into buying an overpriced and lesser quality policy so that Amazon can get a kick back. I'm upset that this is happening and from checking the forums I'm not alone. Amazon is at war with small american business.
Latest Rejection Reason after first "appeal" (March 9th, 2025):
-- Your policy is missing the signature of the authorized representative or company seal.
Previous Rejection Reason (March 4th, 2025):
-- The proof of insurance that you provided indicates that your policy is not written on an occurrence basis.
Both of these of course are bogus reasons for rejection. The policy provided is the very definition of an occurrence basis policy and the policy has the Erie Insurance logo all over it.
Seller_6JiriadV4sXsm
It's a blatent money grab.
I keep getting an insurance rejection for a policy that's been previously accepted for many years. The reason for rejection keeps changing and I think that I'm being forced into buying an overpriced and lesser quality policy so that Amazon can get a kick back. I'm upset that this is happening and from checking the forums I'm not alone. Amazon is at war with small american business.
Latest Rejection Reason after first "appeal" (March 9th, 2025):
-- Your policy is missing the signature of the authorized representative or company seal.
Previous Rejection Reason (March 4th, 2025):
-- The proof of insurance that you provided indicates that your policy is not written on an occurrence basis.
Both of these of course are bogus reasons for rejection. The policy provided is the very definition of an occurrence basis policy and the policy has the Erie Insurance logo all over it.
