What is Deductible?
A deductible is the amount you pay out of pocket on a covered claim before your insurance pays the rest. A higher deductible usually lowers your premium but increases what you owe per claim. Some marketplaces cap how high a seller's deductible can be.
Why it matters for sellers
Amazon requires that your deductible be no greater than $10,000. When comparing quotes, look at the deductible alongside the premium, because a cheap policy with a high deductible can cost more when a claim actually happens.
Example
On a claim that settles for $60,000 with a $5,000 deductible, you pay $5,000 and the insurer pays the remaining $55,000.
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Questions
Does Amazon limit the deductible on seller insurance?+
Yes. Amazon requires the deductible on your commercial liability policy to be no higher than $10,000.
Definition based on Insurance Information Institute and IRMI Glossary of Insurance & Risk Management Terms. Reviewed 2026-07-01. This is general information, not insurance advice.