Do You Need Insurance?
Amazon requires sellers with revenue over a certain threshold to carry commercial liability insurance. Beyond Amazon's requirements, insurance protects your business from risks that could be financially devastating without coverage. Product liability claims, stock damage, business interruption, and professional indemnity are all risks that Amazon sellers face.
Product Liability Insurance
This is the most important coverage for Amazon sellers. If a product you sell causes injury or damage to a customer, product liability insurance covers legal costs and compensation claims. Even if you did not manufacture the product, as the seller you can be held liable. Amazon often requires this insurance and asks for proof once your sales exceed certain thresholds.
Stock Insurance
Your inventory represents a significant investment. Stock insurance covers the value of your products if they are lost, damaged, or destroyed — whether in your home, at a prep centre, in transit, or at Amazon's warehouse (Amazon's coverage has limits and conditions). For sellers with tens of thousands of pounds in inventory, the cost of stock insurance is modest relative to the protection it provides.
Public Liability
If someone visits your business premises (home office, warehouse, prep centre) and is injured, public liability insurance covers the claim. This is particularly relevant if you have staff, visitors, or use a physical location for your business operations.
How Much It Costs
Basic product liability insurance for Amazon sellers starts from around ten to twenty pounds per month for smaller sellers. Coverage levels and premiums increase with your revenue and the types of products you sell (higher-risk categories like electronics or children's products cost more). Shop around and use specialist ecommerce insurance providers who understand Amazon selling — they offer more appropriate coverage than generic business insurance.