Newegg is one of the largest US marketplaces, and the number one global technology marketplace. The main Newegg marketplace hosts more than 10.5 million products, with 20 million buyers regularly visiting the site. Their smaller, niche marketplace, Newegg Business services over 150,000 business buyers in the United States. Newegg is a favorite among vendors, because you’re able to reach large audiences in both the US and Canada, with dramatically less competition than marketplaces like Amazon. Getting started on Newegg is fairly straightforward, with free registration options on both the main site and Newegg Business. The one thing you’ll need to have ready before you can get started is a certificate of insurance that meets Newegg’s insurance requirements.
Like in any contract, the Newegg insurance requirement is written in complicated legal jargon, and difficult to understand. It’s common for vendors to go back and forth with their insurance agent several times before they get their certificate of insurance right, and can finally start selling.
That’s why we’re here! In this article, we’ll go over the insurance that Newegg requires, what it covers, and how to get it quickly.
Newegg (and Newegg Business) Insurance Requirements
Newegg’s insurance requirements will vary slightly depending on what you’re selling and how you’re selling it. For both Newegg and Newegg Business, the requirement in your contract states:
“At its sole expense, Seller must procure and maintain general commercial and products liability insurance applicable to Seller Products, with at least an A.M. Best Rating of A-, VII or higher, with minimum liability amounts stated below: General & Commercial Liability Insurance, Personal and Advertising Injury, and Errors & Omissions Insurance in amounts not less than $1 million per occurrence and $2 million in the aggregate. In addition, if Seller manufactures any Product it offers for sale on the Website, Seller shall also procure and maintain Product Liability and Product Recall insurance in amounts not less than $1 million per occurrence and $2 million in the aggregate. These insurance requirements do not limit Seller’s liability to Newegg in the event insurance recoveries/proceeds are less than Seller’s liability to any party. Upon any material change(s) in coverage, Seller must give at least thirty (30) days prior notice to Newegg.
Certificate of Insurance. Within ten (10) days of execution of this Agreement, Vendor shall provide a current Certificate of Insurance satisfactory to Newegg reflecting the types of coverage and limits required hereunder, and shall name Newegg as an additional insured in the aforementioned policy. In addition, the Certificate of Insurance will indicate that Newegg will be given 30 days’ written notice in the case of cancellation of the policy.
Named Insured: Newegg Inc., and its subsidiaries
Attn: Risk Manager
c/o Newegg Inc.
17560 Rowland Street
City of Industry, CA 91748
Newegg reserves the right, in its sole discretion, to at any time upon written notice to require a Seller to increase its levels of insurance coverage above those set forth in Section 9.2 above.”
Let’s Break it Down & Simplify Your Requirement:
General Liability | $1M / $2M
General Liability covers third party bodily injury and property damage. You’re required to have a per occurrence limit of $1M and an aggregate limit of $2M. This means your General liability policy will pay up to $1M for each individual incident, and up to $2M for the entire policy period.
Newegg requires that your General Liability policy contains Commercial Products Liability and Personal Advertising Injury. To ensure that these are included, let your agent know or purchase a pre-built Newegg policy.
Professional Liability (E&O) | $1M / $2M
Professional Liability, also known as errors and omissions, protects you against any mistakes or errors in judgment that cause harm to your customers or to Newegg. For example, if you failed to list a certain chemical on the label and someone had an allergic reaction, they could sue you for negligence. It’s rare for professional liability to be sold with per occurrence and aggregate limits. So, you’ll likely be looking for a $2M Professional Liability Policy.
Product Liability & Product Recall | $1M / $2M
If you are manufacturing your own products, you must also have product liability and product recall insurance. Again, they should have a $1M per occurrence and $2M aggregate limit.
Product recall insurance is usually not included with general liability and covers the cost of recalling products, it does not cover product lawsuits.
Product liability insurance is sometimes included with general liability and covers specific product lawsuits, however it does not cover recall costs.
An additional insured endorsement means that Newegg is protected by your insurance policy as well, when applicable. You’ll need to make sure you have the exact language that they require on your certificate of insurance. To make sure you have the correct coverage, read the requirement to your agent or broker in its entirety, or purchase a pre-made Newegg Sellers’ policy with the specific requirements built in.
- Your COI must indicate that your insurance carrier will give Newegg 30 days notice prior to any changes of cancellations
- Your carrier must have an A.M Best rating of at least A-, VII or higher. If you already have an insurance policy, you can search your carrier on the A.M. Best site to see their rating.
- Certificate Holder: Newegg Inc., Attn: Risk Manager, C/O Newegg Inc., City of Industry, CA 91748
- At any time, Newegg can require sellers to increase their level of insurance coverage
Pro Tip: When a contract states that it can raise your requirements, it’s a good idea to purchase your policy from a digital broker offering Live Certificates of Insurance. This way, you’ll be able to quickly add coverage and share your new Certificate of Insurance when you need to.
Getting Your Certificate of Insurance in Time
Newegg requires you to have your certificate of insurance ready to go within 10 days of executing your agreement. Unfortunately, that’s faster than most insurance companies can cover you. To ensure that you get the correct coverages, limits, language and endorsements on the first try, select a pre-built Newegg Insurance Policy below. We’ll have your certificate of insurance ready to go in 1-3 business days!
The Newegg Policy will come with all of the required coverages, limits, endorsements and language built in. You’ll also have a Live COI to simplify the process if you’re ever asked to change your coverage! The live COI also allows you to easily share with other marketplaces that require insurance, like Amazon, Wayfair or Walmart Marketplace.
If you already have a broker or agent, or want to purchase the coverage elsewhere, make sure you’re specific about your business and your requirements.
Here’s an example of how to explain your Newegg insurance requirement to an agent:
“I am selling electronic goods online at Newegg.com. I need a General Liability policy with a $1M per occurrence limit and a $2M aggregate limit. The policy must include Commercial Products Liability and Personal Advertising Injury. I’ll also need professional liability insurance with the same limits. Part of my requirement is that Newegg Inc., and its subsidiaries are added as additional insureds. They must also be listed as the certificate holder. This is their address: Newegg Inc., and its subsidiaries, Attn: Risk Manager, c/o Newegg Inc., 17560 Rowland Street, City of Industry, CA 91748. The certificate should state that Newegg will be given 30 days prior written notice in the case of cancellation.“
To get a quote as quickly as possible, be prepared to answer the following questions:
- Do you private label or manufacture your own goods?
- Are any of your items imported from out of the country?
- Do you have a physical location?