Amazon $1M Liability Insurance Rule for Supplement Sellers

Amazon now requires third-party sellers with dietary supplements and other ingestible products in its U.S. store to carry at least $1 million in commercial liability insurance, no matter how little they sell. The rule took effect November 2, 2026, and removes the sales threshold that used to decide whether a small seller needed a policy at all.

Amazon announced the change on September 3 in a post on its U.S. Seller Forums. Under the existing policy, which still applies, every seller must obtain coverage within 30 days once gross proceeds from Amazon.com sales top $10,000 in any month. The new requirement adds a second trigger based on what a seller lists rather than how much it sells.

Which products trigger the new requirement

The rule covers “sellers with products listed in categories with enhanced safety listing requirements,” and Amazon says it “applies to both new and existing listings.” The forum notice names children’s products, cosmetic and ingestible products, and lithium battery products as examples, and it says the categories “include, but are not limited to” those groups.

Amazon’s category page, which requires a Seller Central login, places dietary supplements, ingestible over-the-counter medication and ophthalmic drug products under a “Consumable and ingestible products” group, according to copies of the list published by Seller Essentials and PrepVia. Both report 11 groups in total, running from toys and car seats to small kitchen appliances, mattresses and tires. Amazon’s page warns that the list “changes as Amazon adds new categories, and it does not cover all products with these requirements.”

That gap worries some sellers. One reply on the forum thread predicted that an herbal tea could be classified as a supplement for one seller and as grocery for a competitor, with only the first needing insurance.

What a policy must include

The dollar floor has not changed. It remains $1 million per occurrence and $1 million in aggregate. Amazon’s Commercial Liability Insurance Requirements page in Seller Central Help sets out the other terms, which PPC Land summarized on November 2:

A commercial general, umbrella or excess liability policy written on an occurrence basis, covering products, completed operations and bodily injury.
A deductible of no more than $10,000, shown on the certificate of insurance.
Coverage of all sales from products the seller lists in the Amazon.com store.
“Amazon.com Services LLC and its affiliates and assignees” named as an additional insured.
No sunset clause, and at least 30 days’ notice to Amazon before cancellation, changes or non-renewal.
An insurer rated A- or better by S&P or AM Best, or a local equivalent, with global claim handling.
An insured name that matches the legal entity on the seller account.

PPC Land pointed out a tension between the two documents. The forum notice speaks of a policy “that covers those products,” while the requirements page asks for coverage of all listed products. A small brand that also sells non-supplement items on Amazon should read the page closely before buying a narrow policy.

The page also leaves room for exceptions. Claims-made policies are allowed for certain product categories where occurrence coverage cannot be bought, and Amazon “will consider exceptions to these requirements on a case-by-case basis,” without saying how long a decision takes.

China-based sellers must buy through Amazon’s program

The second change applies to sellers based in Mainland China. Since November 2, Amazon rejects newly submitted policies from those sellers unless they were bought through the Amazon Insurance Accelerator, a network of insurers Amazon describes as “pre-vetted.” A compliant policy submitted before November 2 can be used until it expires, and the renewal must come through the program. Sellers based elsewhere can still use any insurer whose policy meets the terms.

What happens to listings without proof

Amazon has emailed affected sellers a list of their impacted products. One seller posted the full message on the forums. It tells sellers to upload a certificate of insurance on the Business Insurance page and warns that, without proof, “your listings in the categories mentioned above will be deactivated until you provide compliant documentation.” Sellers who believe Amazon misclassified their products are directed to Selling Partner Support with evidence such as product images.

The email limits that warning to listings in the affected categories. Listings that go dark also lose their Sponsored Products ads, which PPC Land noted ties the insurance rule to ad spend for brands that advertise.

The math for small supplement brands

For a supplement brand doing well under $10,000 a month on Amazon, the rule turns insurance from a cost that arrived with growth into a cost of being listed at all. Neither the forum notice nor the requirements page gives premium figures for low-volume sellers.

Brands that already insure their own web stores have a shorter path. Their existing product liability policy may qualify if it meets the deductible, additional-insured and notice terms, and those are the lines worth checking on the certificate first. Brands that conclude a year-round policy is not worth their Amazon revenue may shift more sales to their own sites, where supplement card acceptance runs through a specialty acquirer such as Organic Payment Gateways rather than Amazon’s checkout, and where processors set their own rules on product claims and documentation.

A fixed cost now comes with every supplement listing

Since November 2, any third-party seller with supplements or other ingestible products in Amazon’s U.S. store needs a $1 million commercial liability policy that names Amazon as an additional insured and carries a deductible of $10,000 or less, whatever its monthly sales. Sellers in Mainland China must buy new policies through the Amazon Insurance Accelerator. The category list is open-ended, exceptions are decided case by case, and listings without proof face deactivation, so small supplement brands now have to price that policy into the decision to sell on Amazon at all.

Amazon Now Requires $1 Million Liability Cover From Supplement Sellers of Any Size