Amazon Seller Insurance

Why Amazon Seller Insurance is Importance and Where You Can Buy It

Are you an Amazon seller who learning how to sell on Amazon FBA products on the platform for a living? Then maybe you should consider getting an Amazon seller insurance. Just like any business, it pays to have a general liability insurance policy in the event that things go wrong. The same goes for Amazon FBA businesses. It’s pretty important to have a blanket of insurance if you encounter some sort of problem while you sell.

Here are a few things you need to take note of:

Why You Should Get an Amazon Insurance

When you own a store on Amazon, you own a business. And when you’re in business, there are always unforeseen situations that may hinder your operations. For example, you may get sued by a customer who bought a product from your store and got injured while using it. If your store has general liability coverage, that coverage can cover all legal fees, settlement, or any other expenses that may come your way.

What’s worse is that if your Amazon store is not registered under a corporation, whoever sues you can aim for your personal assets too. With insurance, you can at least protect whatever personal assets you have as well as your business. While most Amazon FBA businesses want to be on the optimistic side and don’t want to think about these things, it’s better to be safe than sorry.

How to Buy Amazon Insurance

Now that you know the importance of getting an Amazon insurance policy, the next question is how? Well, all you have to do is contact your local insurance company and ask them about general liability policies that apply to Amazon stores.

From there, you’ll just have to undergo a short evaluation wherein you’ll need to present some details on your business and its operations. Once you’re done with all the formalities, then you’ll be presented with a blanket of coverage that can help protect your business.

Is It Required by Amazon?

Amazon doesn’t require you to get an insurance policy, especially if you just have a small seller account. However, some Amazon pro sellers may already be required so long as they already hit the insurance threshold. If they don’t, then they are still not required to get insurance. The threshold is that your sales must reach $10k per month before you are required. If you hit the $10k mark for three months, then Amazon will require you to get a policy.


While Amazon does not require you to get an insurance policy unless you reach a certain level of monthly sales, we still recommend that you get one if you are serious about Amazon selling. This is a great way to keep your business and your assets safe from any harm.

While you can try to avoid instances where you may get sued by a customer, you must be ready in the event that you do. The best way to be ready is to create a wall so that the complainant can’t get past your business. Your insurance policy is the best wall you can have.

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