Amazon's $1M Commercial Liability Insurance Rule: Category Now Decides, Not Sales

Still selling kids' products, cosmetics, supplements, or anything with a lithium battery under the old "$10k a month" insurance threshold?

That door closed on November 2, 2026.

This is a Seller Central change for Amazon.com. It does not touch Vendor Central.

What Amazon just enforced

• The old rule still stands: if Amazon.com gross proceeds exceed USD 10,000 in any month, you need commercial liability insurance within 30 days.
• New rule: if you list in categories with enhanced safety listing requirements, you need the same coverage regardless of sales volume.
• Minimum is USD 1 million per occurrence and in the aggregate.
• It applies to new and existing listings.
• Amazon names children's products, cosmetic and ingestible products, and lithium battery products, and says the list is not limited to those.
• Sellers based in Mainland China must submit new policies through the Amazon Insurance Accelerator (AIA). A compliant third-party policy filed before November 2 stays valid until it expires. After that, AIA is required.

Why sellers get caught out

What goes wrong here is assumption, not awareness. A lot of small catalogs never crossed $10k in a month, so they never bought the policy.

Amazon just made the product the trigger, not the revenue. One ASIN in an enhanced-safety category is enough.

And Amazon's own category page says the published list is incomplete and keeps changing, so waiting for a perfect list is a bad plan.

What I would do this week

• Pull every ASIN against Account Health and Amazon's enhanced-safety category page.
• Confirm your Certificate of Insurance meets the $1M limits and names Amazon.com Services LLC as additional insured.
• Upload proof on the Business Insurance page before listings get pulled.
• If you are China-based, check whether your current policy was accepted before November 2, and plan the AIA renewal now.

Low volume does not mean low risk anymore. The category decides.

Not sure which of your ASINs sit in an enhanced-safety category? Our Seller Central consulting work includes a catalogue and account health check that flags them.