Selling a single toy, supplement, or small kitchen appliance on Amazon can now require a $1 million insurance policy, no matter how little the listing earns.
For years, a seller who never had a $10,000 month could skip liability insurance on Amazon, but the Amazon 1 million insurance rule ended that on November 2 for any seller with a product in an enhanced safety category. Amazon says the change applies to new and existing listings, so an older listing that sells a few units a month counts the same as a bestseller.
A seller moving a few toddler toys a month, for example, now needs the same coverage as a brand with six-figure sales. This report covers what changed, which products trigger the rule, and what sellers and any Amazon agency managing their catalogs need to check.
Amazon 1 Million Insurance Rule Adds a Category Trigger on November 2
Amazon updated its commercial liability insurance requirements on November 2, adding a category-based trigger to a rule that previously depended only on sales, ARMR reports. Before the change, a seller needed $1 million in coverage within 30 days of passing $10,000 in gross proceeds in a single month on Amazon.com.
Under the Amazon 1 million insurance rule, any seller with at least one ASIN in an enhanced safety category needs $1 million in Amazon commercial liability insurance at any sales level, and Amazon’s notice applies the change to new and existing listings. Sellers outside those categories still follow the $10,000 monthly threshold.
ARMR ties the change to risk rather than revenue, saying a defective or mislabeled unit can cause physical harm no matter how many units a brand has sold. The report describes the required coverage as $1 million per occurrence and in aggregate, written on an occurrence basis, and says it must cover every product a brand lists, not only the flagged ASIN.
Amazon posted its notice on September 3, which gave sellers 60 days before the rule took effect. The table below summarizes the key figures.
| Detail | Figure |
|---|---|
|
Rule effective
|
November 2, 2026
|
|
Notice posted
|
September 3, 2026
|
|
Required coverage
|
$1 million per occurrence and in aggregate
|
|
Original trigger
|
$10,000 in one month, then 30 days to get coverage
|
|
Amazon’s list
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11 categories, 37 product types
|
11 Amazon Enhanced Safety Categories Trigger the Insurance Requirement
Imisofts counted 11 categories and 37 named product types on Amazon’s list when it read the category page on November 4. The table below shows each category with examples of the product types Amazon names.
| Amazon enhanced safety category | Product examples |
|---|---|
|
Children’s products
|
Toys, booster seats, play yards
|
|
Consumable and ingestible products
|
Dietary supplements, over-the-counter medication
|
|
Fire-related products
|
Fire extinguishers, smoke alarms
|
|
General household devices
|
Small kitchen appliances, immersion water heaters
|
|
Home medical devices
|
Walkers, respiratory care supplies
|
|
Lithium battery products
|
Lithium batteries, e-mobility devices
|
|
Outdoor power and heating equipment
|
Portable generators, pressure washers
|
|
Personal safety equipment
|
Helmets, climbing harnesses
|
|
Sleep products
|
Mattresses, adult portable bed rails
|
|
Transport-related products
|
Auto and motorcycle tires
|
|
Water and marine safety products
|
Flotation products, pool safety products
|
Amazon’s notice itself names only three groups: children’s products, cosmetic and ingestible products, and lithium battery products. The longer category list above covers the rest.
Amazon warns that the list changes as categories are added and does not cover every product with these requirements. The report says sellers should check Account Health for the products that apply to them.
Cosmetic products are the one gap between the two. Amazon’s notice names them, but the category page does not mention cosmetics, and the report recommends confirming with Seller Support in writing.
Product Category, Not Sales, Now Triggers Amazon Commercial Liability Insurance
ASINLYTICS reports that the change applies to Amazon.com Seller Central and does not affect Vendor Central. One ASIN in an enhanced safety category is enough to trigger the requirement, the report says.
Many small catalogs never passed $10,000 in a month, so they never bought a policy, and sellers get caught by assumption, not awareness. “Low volume does not mean low risk anymore. The category decides,” writes ASINLYTICS founder Vivek Sharma.
Low sales no longer exempt a seller with a product in an enhanced safety category from the requirement. Sellers with no such products who stay under $10,000 a month follow the older rule.
Amazon’s own category page describes its list as incomplete and changing. The report advises sellers to check every ASIN against Account Health and Amazon’s category page.
Sellers Without Coverage Face Deactivation Risk as China Sellers Move to the Amazon Insurance Accelerator
LLC Geek reports that Amazon emails affected sellers and gives them 45 days to submit proof of coverage, after which listings in the covered categories can be deactivated. Amazon’s notice itself does not state a grace period or a penalty, so the 45-day window comes from the report, not from Amazon.
Sellers based in Mainland China must now buy new policies through the Amazon Insurance Accelerator (AIA), a group of insurers Amazon assembled with the broker Marsh. Amazon said it will “reject newly submitted insurance policies that are not obtained through AIA,” according to the report.
Policies that were valid and on file before November 2 can stay in use until they expire, and sellers outside Mainland China can use any insurer that meets Amazon’s standards. Amazon has not said what these policies typically cost, and its requirements page publishes no premium figures.
Prices depend on the product and the insurer, the report says, and it recommends getting quotes now and comparing each year’s premium with what each covered listing earns. For some low-volume sellers, it adds, dropping a listing may make more sense than insuring it.
