Amazon to Offer $1,000 for Product Injuries, $100,000 Insurance Coverage Requirement for Sellers

By Levin Simes
August 12, 2021

Amazon announced major news regarding their product sales platform this week. Amazon will offer $1,000 or more to those injured by product defects, in an attempt to avoid more costly litigation. Amazon placed a $1 million upper limit on offers to those injured by third party products, will require more sellers carry their own additional $100,000 insurance policy, for anyone selling over $10,000 in a single month.

Amazon claims it can cover 80 percent of personal injuries and property damages with these $1,000 payments, no doubt in an attempt to limit their own possible liability.  Levin Simes are experienced product liability attorneys, including investigating cases of product injury from Amazon products. We can help with battery burns, fires, explosions, and product defect claims.

Amazon’s description of their new claim process:

For products sold through, Amazon will facilitate resolution of property damage and personal injury claims between the customer, the seller, and their insurance provider… If a seller does not respond to a claim, Amazon will step in to directly address the immediate customer concern, bear the cost ourselves, and separately pursue the seller. If a seller rejects a claim we believe is valid, Amazon may also step in to address the customer concern; in these cases, sellers will continue to have the opportunity to defend their product against the claim.

$1,000 Amazon Product Defect Settlement Offer

Amazon announced a new policy in which injured consumers can claim $1,000 and possibly more after personal injury or property damage. Amazon intends to pay claims up to $1,000 out of their pocket, claims above this level will involve the sellers insurance.

Amazon claims it will require you to agree to not sue the company, if you accept any settlement. If you are considering accepting a settlement for personal injury or product damages, consider speaking with an attorney about your claim first.  Amazon may be attempting to settle a claim for less than they would settle in another environment, such as after litigation commences.

Levin Simes offers free legal consultations for anyone injured by an Amazon purchased product.  Liability for a company like Amazon has been an evolving legal space, speak with an experienced attorney to review your claim.

$10,000 in Amazon Sales Requires Product Liability Insurance

Amazon changed their reseller requirements with these new announcements. Previously any seller that sold above $10,000 per month for three months in a row had to carry product liability insurance.

Now Amazon will require insurance from any seller that has a single month of sales in excess of $10,000, which will greatly increase the amount of sellers require to carry insurance.  Claims can be for either personal injury and property damage.

$100,000 Amazon Product Defect Liability Insurance

The new requirements for sellers come with a minimum $100,000 insurance policy.

Marsh announced a partnership with Amazon to assist their sellers in finding and selecting an insurance product. The partnership will be a part of the new Amazon Insurance Accelerator, where US-based businesses using Amazon can source product liability insurance quotes. Additional companies announcing they will be part of the Amazon Insurance Accelerator include Chubb, Hiscox, Liberty Mutual, Travelers and Markel.

$1,000,000 Amazon Product Injury Settlements

Amazon states in their terms and conditions payments can be made up to $1,000,000, cover injury and loss from personal injury, property damage, lost wages, and medical expenses:

  1. Any offers of compensation made through the A-to-z Claims Process will be limited to (a) the purchase price of the product; and (b) compensation of up to $1 million for medical expenses, lost wages, and property damage proximately caused by a defective product. Amazon will not offer to compensate you for non-economic damages, business losses, consequential and incidental damages, attorney fees, punitive damages, or other losses.

Levin Simes – Amazon Product Defect Lawsuit

If you were injured by an Amazon product defect, contact the attorneys at Levin Simes today. We have the experience going against Amazon, foreign sellers, resellers, on behalf of injured consumers in the United States.  To read more about product injury from an Amazon product, read our page here.

Contact us at 415-480-7448 or

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