UK FBA Answer · Updated 2026

Do I need product liability insurance for Amazon FBA UK?

Short answer

Amazon UK requires sellers crossing $10,000 (or equivalent) per month in any 12-month period to provide proof of product liability insurance with at least $1 million per occurrence cover. UK FBA sellers approaching this threshold should expect an Amazon insurance request — basic UK product liability cover starts at £60-£150/year via Simply Business, AXA, Hiscox, or specialist e-commerce providers.

Most UK Amazon FBA sellers don't need insurance from day one — but you absolutely need it once Amazon asks. They will. Here's the actual UK reality in 2026.

When Amazon UK requires insurance

Amazon's policy: sellers whose gross sales on Amazon hit $10,000 (or its equivalent) in any given month, in any 12-month rolling period, must provide proof of commercial liability insurance. They'll send you a formal request via Seller Central — usually within 60 days of you crossing the threshold. Failure to provide policy proof within 30 days of the request triggers selling privilege restrictions.

What cover you actually need

Amazon's minimum: $1,000,000 per occurrence and in aggregate, naming Amazon as Additional Insured (some insurers say "Indemnitee"). For UK sellers this means the policy must specifically include US/Worldwide jurisdiction even if you only sell on Amazon UK — Amazon are a US company contracting with you. £1M+ aggregate cover with worldwide territory is the standard wording UK e-commerce insurers offer for this exact use case.

Realistic UK costs

Annual premiums range £60-£300 depending on category, turnover, and risk profile. Beauty + supplements + children's products attract higher rates. Generic homewares + consumer electronics are cheaper. Specialist brokers for Amazon sellers (eg ASD-Insurance, Insure My Stock) often beat generic SME insurers because they understand the Amazon-as-Additional-Insured clause and can issue compliant certificates fast.

What to ask for when getting a quote

Tell the broker: (1) you're a UK Amazon FBA seller, (2) approximate annual turnover, (3) main product categories, (4) you need a Certificate of Insurance with Amazon listed as Additional Insured, (5) at least £1M aggregate cover with worldwide territory. They'll know exactly what you need. Avoid generic SME insurers — they'll either not understand the Amazon clause or will quote 2-3x what specialist brokers charge.

When to register voluntarily before the threshold

Smart move: get cover from day one if you're selling private label, branded supplements, electronics with batteries, or children's products. The risk of a product-liability claim from a single defective unit can be catastrophic, and £100/year cover is cheap insurance. For pure arbitrage of mainstream branded goods (Procter & Gamble, Unilever, etc.), the risk is lower because the brand owner carries primary liability — but Amazon will still ask once you cross the threshold.

Disclaimer

This is general information, not insurance advice. Your specific exposure depends on your products, business structure, and personal circumstances. Speak to a UK insurance broker (or several) before deciding. Inner Circle FBA partners with several insurers familiar with UK FBA — see /partners.