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General Liability Insurance for Amazon Sellers in New York: Coverage, Costs, and Requirements
General liability insurance for Amazon sellers in New York: what Amazon requires, what GL covers, what it excludes, and average premiums for FBA and FBM sellers.
Written by
Editorial Team
Reviewed by
James T. Whitfield
General liability insurance is a required coverage for New York Amazon sellers who reach Amazon's sales thresholds. Amazon's Business Solutions Agreement requires sellers with monthly sales above $10,000 to carry GL coverage with minimum limits of $1 million per occurrence. New York's litigation environment makes GL premiums the highest in the nation for New York-based sellers.
Quick Answer
Estimated general liability premiums for New York Amazon sellers:
| Seller Size | Estimated Annual GL Premium |
|---|---|
| Small seller (under $500K annual sales) | $650 to $1,300 per year |
| Larger seller ($500K or more annual sales) | $1,250 to $2,500 per year |
New York Amazon seller GL premiums are the highest in the nation, reflecting the NYC litigation environment.
What GL Covers for New York Amazon Sellers
Products Liability
Commercial GL policies include products and completed operations coverage. If a product you sell on Amazon causes bodily injury or property damage to a customer, GL's products liability component covers those claims.
Bodily Injury at Your Office or Warehouse
Covers claims from visitors, delivery drivers, or other third parties injured at your home office, rented warehouse, or studio.
Property Damage to Third Parties
Covers damage to a third party's property caused by your operations.
Defense Costs
GL covers attorney fees, court costs, and settlement amounts for covered claims, even if the claim is unfounded.
What GL Does Not Cover for New York Amazon Sellers
Cyber Incidents and Data Breaches
GL does not cover data breaches or customer data theft. New York's SHIELD Act requires data breach notification for businesses holding New York residents' personal information. Cyber liability insurance covers SHIELD Act breach response and notification costs.
Product Recalls
GL covers bodily injury from defective products but does not cover recall costs. Product recall insurance is separate.
Your Own Inventory
GL does not cover loss or damage to your own inventory. Commercial property insurance covers your own stock.
Employee Injuries
New York requires workers compensation for all employers with employees. GL does not cover employee injuries.
New York-Specific Considerations
Amazon's GL Requirements
Amazon requires sellers with monthly sales above $10,000 to carry GL coverage of at least $1 million per occurrence naming Amazon.com Services LLC as additional insured. New York-based sellers should confirm their policy meets Amazon's requirements and is issued by an admitted carrier in New York State.
SHIELD Act and Data Security
New York's SHIELD Act requires businesses holding New York residents' personal information to implement reasonable data security safeguards and notify affected individuals in the event of a breach. New York Amazon sellers who collect customer data through off-Amazon channels should carry cyber liability insurance to cover SHIELD Act obligations. GL does not cover these costs.
NYC Direct-to-Consumer and Private Label Market
New York City has a large community of Amazon private label sellers and direct-to-consumer brands. NYC-based sellers face above-average GL exposure from New York's litigation environment. Sellers with warehouse or studio space in NYC or the outer boroughs must comply with commercial lease GL requirements that may exceed Amazon's minimums.
FBA and New Jersey Fulfillment Centers
Many New York-based Amazon sellers use FBA through Amazon's New Jersey fulfillment centers, which are among the largest in the network. Confirm your GL policy covers products liability for FBA-stored goods regardless of the fulfillment center's state.
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Frequently Asked Questions
Does Amazon require GL insurance for New York sellers?
Yes. Amazon requires sellers with monthly sales above $10,000 to carry GL of at least $1 million per occurrence naming Amazon as additional insured.
What does GL cover for a New York Amazon seller?
GL covers products liability claims, bodily injury at your location, property damage to third parties, and defense costs.
Does the SHIELD Act affect my Amazon GL coverage in New York?
The SHIELD Act requires data breach notification. GL does not cover breach response. Cyber liability insurance covers SHIELD Act obligations.
How much does GL cost for a New York Amazon seller?
New York small Amazon sellers typically pay $650 to $1,300 per year for GL coverage.
Does GL cover my FBA inventory stored in Amazon's New Jersey warehouses?
GL covers products liability claims from FBA-stored goods but does not cover loss or damage to your own inventory. Commercial property insurance covers your inventory.
Disclaimer
This article is for informational purposes only and does not constitute insurance or legal advice. Coverage details and costs vary by carrier and individual circumstances. Consult a licensed insurance agent and attorney for guidance specific to your situation.
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This article is for informational purposes only and does not constitute insurance advice. Coverage, requirements, and costs vary by state, carrier, and individual circumstances. Consult a licensed insurance agent for guidance specific to your situation.
About the author
Commercial Insurance Editorial Team
The Dareable editorial team covers commercial insurance for small business owners. Every guide is fact-checked by a licensed CIC or CPCU before publication.
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