Amazon’s product liability insurance requirement has always kicked in at $10,000 in monthly gross proceeds – until now. Starting November 2, 2026, Amazon is removing that sales threshold entirely for a specific list of “enhanced safety” product categories. If you buy wholesale in any of these categories, the $1 million coverage requirement now applies to you regardless of how much you’re actually selling.
What’s changing on November 2, 2026
Two changes take effect. First, sellers listing in Amazon’s enhanced-safety categories must carry a minimum of $1 million in liability coverage (per occurrence and in aggregate) no matter their sales volume – the usual $10,000/month trigger simply doesn’t apply to these categories anymore. Second, sellers whose business is based in Mainland China must obtain any new policy exclusively through Amazon’s own Insurance Accelerator (AIA) program; Amazon will reject new non-AIA policies from China-based sellers after this date, though existing policies obtained before November 2 remain valid until they expire.
Which categories lose the sales threshold
The enhanced-safety category list includes children’s products (car seats, toys, infant sleep products), cosmetic and ingestible products (supplements, over-the-counter medications, cosmetics), lithium battery products (e-bikes, scooters, power banks), small kitchen appliances, fire-safety products, mattresses and adult bed rails, tires, personal safety equipment, outdoor power equipment, home medical devices, and water/marine safety products. Amazon has described this list as non-exhaustive, so it’s worth checking your own categories directly in Seller Central rather than assuming a category is safe because it isn’t listed above.
Notice how much of this overlaps with categories wholesale buyers commonly stock: supplements and cosmetics brands, children’s toys, and small appliances are all squarely inside the enhanced-safety list – not niche edge cases.
The compliance window
Once Amazon identifies your account as needing enhanced coverage, you get 45 days from the notification email to submit proof of a compliant policy. Missing that window risks deactivation of your listings in the affected categories specifically – not necessarily your whole account, but enough to hurt if that’s where your inventory is concentrated.
What this means if you buy wholesale in these categories
- Don’t wait for the $10,000/month trigger if you’re in an enhanced-safety category. A small or test-run order in toys, supplements, cosmetics, or battery-powered products now needs the same $1 million coverage as a high-volume seller.
- Check whether your current policy already meets the $1M per-occurrence/aggregate minimum and names Amazon as an additional insured – the coverage requirement itself hasn’t changed, only which sellers must carry it regardless of volume.
- Watch for Amazon’s notification email rather than waiting to be surprised by a deactivation – the 45-day clock starts there, not when you first list a product.
- Factor insurance cost into new-category decisions. If you’re weighing whether to add a new wholesale product line in one of these categories, the insurance requirement is now a day-one cost rather than something you can defer until sales pick up.
Wholesale Distributors US ships authentic inventory with the invoice documentation resellers need for ungating – apply for a wholesale account to see current terms.
FAQ
Does Amazon still require $10,000 in monthly sales before requiring liability insurance?
Only for products outside the enhanced-safety categories. Starting November 2, 2026, sellers in categories like children’s products, cosmetics/ingestibles, and lithium battery products must carry $1 million in coverage regardless of sales volume.
What happens if I don’t get compliant insurance in time?
Sellers get 45 days from Amazon’s notification email to provide proof of compliant coverage. Missing that window risks deactivation of listings in the affected enhanced-safety categories.
Which product categories are affected by Amazon’s enhanced-safety insurance rule?
Categories include children’s products, cosmetic and ingestible products, lithium battery products, small kitchen appliances, fire-safety products, mattresses, tires, personal safety equipment, outdoor power equipment, home medical devices, and water/marine safety products – a list Amazon has described as non-exhaustive.
Related reading: Do You Need Product Liability Insurance to Sell Wholesale on Amazon? | Wholesale Toys and Games: CPSIA Compliance Guide | Amazon FBA Fee Changes in 2026 | Amazon’s Direct Validation Program
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