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General Liability Insurance for Amazon Sellers in Texas: Coverage, Costs, and Requirements
General liability insurance for Amazon sellers in Texas: 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 Texas 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. GL also covers products liability claims from goods you sell, which is the primary risk exposure for most Amazon sellers.
Quick Answer
Estimated general liability premiums for Texas Amazon sellers:
| Seller Size | Estimated Annual GL Premium |
|---|---|
| Small seller (under $500K annual sales) | $450 to $900 per year |
| Larger seller ($500K or more annual sales) | $850 to $1,700 per year |
Texas Amazon seller GL premiums are near the national average.
What GL Covers for Texas 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. This is the primary risk exposure for most Amazon sellers.
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 Texas Amazon Sellers
Cyber Incidents and Data Breaches
GL does not cover data breaches, ransomware attacks, or customer data theft. Cyber liability insurance covers breach response and notification costs.
Product Recalls
GL covers bodily injury caused by defective products but does not cover the cost of recalling a product. Product recall insurance is a separate coverage for sellers with significant product liability exposure.
Your Own Inventory
GL covers damage to others' property, not your own inventory stored in your home or in Amazon's FBA warehouses. Commercial property insurance covers your own inventory.
Employee Injuries
Texas does not mandate workers compensation for most private employers, but GL does not cover employee injuries regardless.
Texas-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. Amazon periodically issues compliance notices to sellers who do not meet this requirement. Confirm your policy meets Amazon's additional insured requirement before submitting a certificate.
FBA and Third-Party Warehouse Storage
Texas Amazon sellers using Fulfillment by Amazon (FBA) store inventory in Amazon's distribution centers, including large facilities in the Dallas-Fort Worth area. Your GL policy should cover products liability for goods stored in third-party fulfillment centers. Confirm this coverage is included with your carrier.
Dallas-Fort Worth Amazon Fulfillment Hub
The Dallas-Fort Worth area is one of Amazon's largest fulfillment networks in the United States. Texas Amazon sellers benefit from short shipping times to a large portion of the national customer base. FBA sellers with inventory in Texas fulfillment centers should confirm their products liability coverage applies to FBA-stored goods.
Product Safety and CPSC
Texas Amazon sellers who sell physical goods subject to Consumer Product Safety Commission (CPSC) regulations face products liability exposure beyond standard bodily injury claims. Sellers of children's products, electronics, and other regulated categories should review CPSC requirements for their product categories.
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Frequently Asked Questions
Does Amazon require GL insurance for Texas sellers?
Yes. Amazon requires sellers with monthly sales above $10,000 to carry GL coverage of at least $1 million per occurrence naming Amazon as additional insured.
What does GL cover for a Texas Amazon seller?
GL covers products liability claims, bodily injury at your location, property damage to third parties, and defense costs.
Does GL cover a product recall for a Texas Amazon seller?
No. GL covers bodily injury caused by defective products but does not cover recall costs. Product recall insurance covers those costs separately.
How much does GL cost for a Texas Amazon seller?
Texas small Amazon sellers typically pay $450 to $900 per year for GL coverage.
Does GL cover my FBA inventory stored in Amazon's Texas warehouses?
GL covers products liability claims from goods stored in FBA warehouses, but does not cover loss or damage to your own inventory. Commercial property insurance covers your own 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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