Amazon $1M Insurance Rule for International LLC Sellers
How foreign Amazon FBA sellers with Wyoming, Delaware, or Florida LLCs obtain compliant ACORD-25 Certificates of Insurance naming Amazon as Additional Insured to prevent seller account suspension.
Published by HynoGo — US LLC & UK LTD Formation for Non-Residents — From Anywhere.. Dedicated corporate formation, international taxation, and business compliance intelligence for cross-border founders.
Amazon's Commercial Liability Insurance Rule ($10,000 Threshold)
If your Amazon US store generates more than $10,000 in revenue in any single month, Amazon automatically flags your account for mandatory insurance verification. You receive an official notification in Seller Central requiring an ACORD Certificate of Insurance within 30 calendar days.
Many foreign sellers make the critical mistake of ignoring this notification or submitting an invalid non-US policy. Foreign insurance policies written by local overseas underwriters are routinely rejected by Amazon's verification algorithm because they lack US jurisdiction defense clauses and direct service of process standing.
Mandatory ACORD-25 Specifications Required by Amazon
To successfully clear Amazon's automated compliance review, your policy must satisfy exact parameters:
- Policy Limits: At least $1,000,000 per occurrence and $1,000,000 aggregate, covering products and completed operations liability.
- Deductible: The maximum allowable deductible for any commercial liability policy on Amazon is $10,000.
- Additional Insured Endorsement: The policy must explicitly list: 'Amazon.com Services LLC and its affiliates and assignees, P.O. Box 81226, Seattle, WA 98108-1226' as an Additional Insured.
- Insured Entity Name: The legal name on the ACORD certificate must exactly match the legal entity name displayed on your Amazon Seller Central 'Legal Entity' profile.
- Carrier Rating: The underwriting insurance carrier must maintain an A.M. Best financial strength rating of 'A-' or better.
Step-by-Step Guide to Uploading Your COI in Seller Central
1. Navigate to Seller Central > Settings > Account Info > Business Insurance.
2. Enter your insurance carrier name and policy number exactly as shown on your ACORD-25 certificate.
3. Input the policy effective date and expiration date.
4. Upload the digital PDF copy of the ACORD Certificate of Insurance with the Additional Insured endorsement attached.
5. Submit for verification. Amazon typically validates compliant policies within 3 to 5 business days.
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