Amazon is tightening enforcement on seller insurance compliance, with reports of stricter requirements beginning October 2nd. Understanding your liability insurance obligations and typical costs is now essential operational knowledge for any serious FBA business.
Key Points
- Enforcement timing: Amazon appears to be implementing more rigorous checks on seller insurance status as of early October
- Coverage scope: Commercial general liability (product liability) insurance is the standard requirement for sellers
- Cost variation: Premiums vary significantly based on product category, sales volume, and risk profile — there is no single “standard” price
Why This Matters
Operating without proper liability insurance exposes you to:
- Account suspension or permanent ban
- Personal financial liability in case of customer injury or property damage claims
- Loss of all inventory and funds held in your seller account
If you’ve been selling without coverage, this is a critical compliance gap to close immediately.
How Squatio Helps
While insurance itself is external to Squatio, understanding your product category’s risk profile and typical sales volume is the first step to getting an accurate quote. Cortex (AI niche & category analysis) can help you quickly assess the risk landscape of your category — injury or liability claims are more common in some niches than others — so you can provide insurers with realistic category and volume data when requesting quotes.
Discussion
What product category are you selling in, and have you found insurance costs vary significantly between providers for your niche?
Source: Reddit