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Your Amazon seller insurance renewal is the once-a-year point to confirm your commercial liability policy still meets Amazon's rules and still fits a bigger business. Amazon requires this coverage once you pass $10,000 in gross proceeds (total sales) in a single month, and that requirement does not pause when the policy expires. For an FBA brand doing $1M to $100M, a renewal is where last year's limits quietly stop matching this year's revenue, ASIN count, and warehouse inventory.
This checklist covers the Amazon requirements you have to keep, the four things that push your renewal premium up, and what to fix before you sign. It sits inside your annual insurance audit, the review the whole renewal hangs off.
Amazon requires commercial liability insurance once you exceed $10,000 in gross proceeds in one month, and that rule holds at every renewal. The policy must keep at least $1M per occurrence and in aggregate, name Amazon as an additional insured, and include product liability coverage.
An additional insured is a party added to your policy so Amazon is covered too, and here the wording has to name Amazon.com Services LLC and its affiliates. The aggregate limit is the most the policy pays across the whole year. Two other details trip up sellers at renewal. The deductible cannot exceed $10,000, so a renewal quote that raised your deductible to lower the premium can put you out of compliance, per Amazon's requirements.
The carrier also has to hold an A- or better rating from Standard & Poor's or A.M. Best. If you are still weighing whether Amazon sellers need insurance at all, the threshold answers it: once you cross it, the 30-day clock to show proof starts.
An Amazon FBA renewal premium usually rises for four reasons: higher revenue, more product categories, more inventory value stored in FBA warehouses, and any claim on your record. Each one raises the carrier's view of your exposure, so the premium moves even when nothing went wrong during the year.
Revenue is the biggest driver, and carriers price liability partly on sales, so a jump from $2M to $8M raises the premium on its own. Across the Amazon accounts Coverwatch reviews at renewal, growth usually outpaces the policy. The expiring limits were set for a smaller operation and no longer match the revenue, ASIN count, or stored inventory.
A claim stays priced into your premium for several years. Knowing how a claim on your record shapes the quote helps you read the increase.
Stored inventory is the factor sellers underestimate. As you keep more units in FBA warehouses to hold Buy Box eligibility, the value at risk in one location climbs, and carriers factor that into the premium. A category shift matters as much as the dollars, since moving into supplements, electronics, or anything ingestible reprices the whole policy (the surprise most sellers miss).
Work this Amazon seller insurance renewal checklist before you sign the new policy. It confirms you still meet Amazon's rules, that your limits fit your current revenue and inventory, and that the marketplace paperwork is current. Match every row against the renewal quote, not against last year's policy.
One row people forget: after the policy renews, re-upload the certificate of insurance for the marketplace so Seller Central shows current policy dates.
| Checklist item | What to check on the renewal | Why it matters |
|---|---|---|
| Liability limits | Still at least $1M per occurrence and in aggregate | Amazon's minimum; a bigger operation may need more |
| Additional insured | Amazon.com Services LLC and its affiliates still named | Amazon requires it, and it drops off if the endorsement lapses |
| Deductible | $10,000 or lower | Above it, you fall out of Amazon compliance |
| Carrier rating | A- or better from S&P or A.M. Best | Amazon requirement; a cheaper carrier may miss it |
| Product liability | Included, matching every ASIN category you sell | Amazon requires it; new categories can be excluded |
| Revenue estimate | Updated to your current run rate | A low estimate triggers a year-end catch-up bill |
| FBA inventory value | Your property or inventory limit covers stored stock | Amazon reimburses lost FBA stock at cost, not retail |
| Certificate of insurance | Re-uploaded to Seller Central after renewal | Amazon verifies the live policy dates |
| Legal entity name | Insured name matches your Amazon legal entity | A mismatch fails Amazon's verification |
Between renewals, three things change your risk the most: new product categories, a higher revenue run rate, and more inventory value in FBA. Each one belongs in the new policy. A renewal that copies last year's numbers can leave you underinsured or out of compliance without anyone noticing.
New product categories are the quiet risk. A policy written for apparel may exclude the supplements or electronics you added this year, so adding new products or suppliers can leave your newest ASINs uncovered. Your revenue estimate needs the same attention.
Carriers reconcile your reported sales against actuals at year-end, and a low estimate from last year's application turns into a catch-up bill on the renewal. The Small Business Administration makes the same point in plainer terms: reassess coverage as the business grows.
Picture an apparel brand that added a line of vitamin gummies this year. The general liability may still apply, but the product liability written for clothing can exclude ingestible goods, so the fastest-growing ASINs sit outside coverage until the policy is updated. A renewal is the natural moment to name every category you now sell.
Amazon does not reimburse the full value of inventory it loses or damages. That gap is what your own policy is for, and a renewal is the point to confirm the limit still covers your stored stock. FBA inventory value climbs as you scale, and the coverage that protects it is separate from Amazon's liability requirement.
Since 2025, Amazon reimburses lost or damaged FBA stock at your product's manufacturing cost, not its retail price, per Amazon's FBA reimbursement policy. Manufacturing cost means what you paid to source it, and the payout excludes shipping, handling, and customs duties. The claim window is 60 days.
So a pallet lost in a fulfillment center pays back your landed cost at best, well below the revenue it would have earned (which is the number that actually stings). Coverage for inventory sitting in a 3PL or FBA warehouse is a separate line worth confirming at renewal as your stored value grows.
Start your Amazon seller insurance renewal review about 30 to 45 days before the policy expires. That leaves time to update your revenue estimate and confirm the additional insured and limits. It also lets you shop the market if the increase is steep and re-upload the certificate to Seller Central before the old dates lapse.
If this is your first renewal, the review is mostly confirming nothing important dropped off while your sales grew. A flat-fee broker helps here, because the fee does not rise with your premium and there is no reason to steer you toward a bigger number. Coverwatch markets ecommerce programs across 60+ carriers and checks each renewal against Amazon's rules, your current revenue, and your FBA inventory value before the expiration date. See ecommerce insurance for scaling brands to line up your Amazon renewal options before the policy lapses.
Yes, if you crossed $10,000 in gross proceeds in any single month. Amazon's commercial liability insurance requirement does not pause when your policy expires. At renewal you have to keep at least $1M per occurrence and in aggregate, name Amazon as an additional insured, and hold a carrier rated A- or better. Dropping the coverage after a renewal can put your selling account out of compliance.
Amazon requires commercial liability insurance of at least $1 million per occurrence and $1 million in aggregate. The policy must include product liability, name Amazon.com Services LLC and its affiliates as an additional insured, carry a deductible no higher than $10,000, and come from a carrier rated A- or better by Standard and Poor's or A.M. Best. These limits apply at renewal, not just when you first buy.
Four things usually push an Amazon renewal premium higher: more revenue, new product categories, more inventory value stored in FBA warehouses, and any claim on your record. Carriers price liability partly on sales, so growth alone raises the number even with a clean year. A claim stays priced into your premium for several years, not months.
No. Since 2025, Amazon reimburses lost or damaged FBA inventory at your manufacturing cost, meaning what you paid to source it, not the retail price it would have sold for. The figure excludes shipping, handling, and duties, and the claim window is 60 days. Your own inventory or property coverage is what protects the full value of stock stored in FBA, which is worth confirming at each renewal.
Start about 30 to 45 days before the policy expires. That gives time to update your revenue estimate, confirm the limits and additional insured wording still meet Amazon's rules, shop the market if the increase is steep, and re-upload the certificate of insurance to Seller Central before the old policy dates lapse.
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