Get Additional Insured Vendors Form

The Additional Insured Vendors form is a crucial endorsement that modifies a commercial general liability policy to include vendors as additional insureds. This endorsement specifically addresses coverage for bodily injury or property damage related to products sold by the vendor in the ordinary course of business. Understanding the implications of this form is essential for both vendors and businesses to ensure adequate protection and compliance with contractual obligations.

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Structure

The Additional Insured Vendors form, known as CG 20 15 04 13, plays a crucial role in the realm of commercial liability insurance. It specifically modifies the coverage provided under a Commercial General Liability policy, ensuring that vendors associated with a business are protected against certain liabilities. This endorsement is particularly significant for businesses that distribute or sell products, as it extends insurance coverage to vendors for bodily injury or property damage related to those products. However, this coverage comes with specific limitations and exclusions. For instance, the insurance only applies to the extent permitted by law and is not broader than what is stipulated in any existing contracts. Notably, the form outlines various exclusions, such as liabilities arising from contractual obligations or unauthorized warranties. Furthermore, it clarifies that if vendors are required to have insurance through a contract, the coverage limit will be capped at either the contract's requirements or the available limits in the policy, whichever is lower. Understanding the nuances of this form is essential for businesses to navigate their liability risks effectively while ensuring that their vendors are adequately protected.

Additional Insured Vendors Preview

POLICY NUMBER:	COMMERCIAL GENERAL LIABILITY
	CG 20 15 04 13

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ADDITIONAL INSURED – VENDORS

This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART

SCHEDULE

Name Of Additional Insured Person(s) Or

Organization(s) (Vendor)

Your Products

Information required to complete this Schedule, if not shown above, will be shown in the Declarations.

A. Section II – Who Is An Insured is amended to include as an additional insured any person(s) or organization(s) (referred to throughout this endorsement as vendor) shown in the Schedule, but only with respect to "bodily injury" or "property damage" arising out of "your products" shown in the Schedule which are distributed or sold in the regular course of the vendor's business.

However:

1.The insurance afforded to such vendor only applies to the extent permitted by law; and

2.If coverage provided to the vendor is required by a contract or agreement, the insurance afforded to such vendor will not be broader than that which you are required by the contract or agreement to provide for such vendor.

B. With respect to the insurance afforded to these vendors, the following additional exclusions apply:

1.The insurance afforded the vendor does not apply to:

a."Bodily injury" or "property damage" for which the vendor is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages that the vendor would have in the absence of the contract or agreement;

b.Any express warranty unauthorized by you;

c.Any physical or chemical change in the product made intentionally by the vendor;

d.Repackaging, except when unpacked solely for the purpose of inspection, demonstration, testing, or the substitution of parts under instructions from the manufacturer, and then repackaged in the original container;

CG 20 15 04 13

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e. Any failure to make such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connection with the distribution or sale of the products;

f. Demonstration, installation, servicing or repair operations, except such operations performed at the vendor's premises in connection with the sale of the product;

g.Products which, after distribution or sale by you, have been labeled or relabeled or used as a container, part or ingredient of any other thing or substance by or for the vendor; or

h."Bodily injury" or "property damage" arising out of the sole negligence of the vendor for its own acts or omissions or those of its employees or anyone else acting on its behalf. However, this exclusion does not apply to:

(1)The exceptions contained in Sub- paragraphs d. or f.; or

(2)Such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connection with the distribution or sale of the products.

2.This insurance does not apply to any insured person or organization, from whom you have acquired such products, or any ingredient, part or container, entering into, accompanying or containing such products.

C.With respect to the insurance afforded to these vendors, the following is added to Section III – Limits Of Insurance:

If coverage provided to the vendor is required by a contract or agreement, the most we will pay on behalf of the vendor is the amount of insurance:

1.Required by the contract or agreement; or

2.Available under the applicable Limits of Insurance shown in the Declarations;

whichever is less.

This endorsement shall not increase the applicable Limits of Insurance shown in the Declarations.

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CG 20 15 04 13

➤ PDF File

Document Data

Fact Name	Details
Purpose	The Additional Insured – Vendors form extends coverage to vendors for bodily injury or property damage arising from your products sold in the vendor's business.
Coverage Limitations	Coverage for vendors is limited to what is required by contract. It cannot exceed the insurance you are obligated to provide for them.
Exclusions	Several exclusions apply, including bodily injury or property damage from vendor's assumed liabilities, unauthorized warranties, and negligence of the vendor.
Applicable Laws	The governing laws for this form can vary by state. It is essential to review local regulations for specific requirements.
Insurance Limits	The maximum payout for vendors is either the amount required by contract or the limits available under the policy, whichever is less.
Modification of Coverage	This form modifies the Commercial General Liability Coverage and Products/Completed Operations Liability Coverage parts of the policy.

How to Use Additional Insured Vendors

Completing the Additional Insured Vendors form is an important step in ensuring that your vendors are covered under your insurance policy. Follow these steps to fill out the form accurately.

Locate the POLICY NUMBER section at the top of the form. Enter your commercial general liability policy number.
In the Name Of Additional Insured Person(s) Or Organization(s) (Vendor) section, write the full name of the vendor you wish to add as an additional insured.
If there are any specific products associated with this vendor, provide details in the Your Products section. Include the name or description of the products.
Review the information you have entered for accuracy. Ensure that the vendor's name and product details are correct.
Sign and date the form at the bottom to certify that the information provided is accurate and complete.
Submit the completed form to your insurance provider as instructed. Keep a copy for your records.

Key Facts about Additional Insured Vendors

What is the Additional Insured Vendors form?

The Additional Insured Vendors form is an endorsement that modifies your Commercial General Liability insurance policy. It allows you to add specific vendors as additional insured parties under your policy. This means that if a vendor faces a claim related to bodily injury or property damage arising from your products, they may be covered under your insurance, depending on the terms outlined in the endorsement.

Who qualifies as an additional insured under this form?

Any person or organization listed in the Schedule of the endorsement qualifies as an additional insured. However, this coverage is specifically limited to claims related to bodily injury or property damage that arises from your products sold or distributed in the vendor's regular business operations.

Are there limitations to the coverage provided to vendors?

Yes, there are several limitations. For instance, the coverage does not extend to damages for which the vendor is liable due to contractual obligations, unauthorized warranties, or any changes made to the product by the vendor. Additionally, if a vendor's negligence is the sole cause of the injury or damage, the coverage may not apply, except in specific circumstances outlined in the endorsement.

What happens if the vendor has a contract requiring broader coverage?

If a vendor's contract requires broader coverage than what is provided by your policy, the insurance afforded to the vendor will not exceed the coverage you are obligated to provide by that contract. Essentially, your policy will not cover more than what the contract stipulates.

Can I add multiple vendors as additional insureds?

Yes, you can add multiple vendors as additional insureds. Each vendor must be listed in the Schedule of the endorsement. It is essential to ensure that the details of each vendor are accurately documented to avoid any confusion regarding coverage.

What types of claims are excluded from coverage?

Several types of claims are excluded from coverage, including those arising from the vendor's assumption of liability in a contract, unauthorized warranties, and any modifications made to the product by the vendor. Additionally, the endorsement excludes claims related to the vendor's negligence, except in specific situations detailed in the form.

How are limits of insurance determined for vendors?

The limits of insurance for vendors are determined by the lesser of two amounts: the limit required by the vendor's contract or the limit available under your policy's Declarations. This means that even if a vendor's contract stipulates a higher limit, your policy will only cover up to the amount specified in your Declarations.

Does this endorsement increase my overall policy limits?

No, the Additional Insured Vendors endorsement does not increase the overall limits of your insurance policy. The limits specified in your Declarations remain the same, and the endorsement simply allows for coverage to extend to the listed vendors under those existing limits.

How should I complete the Schedule for the Additional Insured Vendors form?

To complete the Schedule, list the names of the additional insured vendors clearly and accurately. Ensure that the information aligns with any agreements or contracts you have with these vendors. If you have specific products associated with these vendors, include those details as well, as they are crucial for determining the scope of coverage.

Common mistakes

Filling out the Additional Insured Vendors form can be straightforward, but many people make common mistakes that can lead to confusion or complications later. One frequent error is not accurately identifying the additional insured. It is crucial to list the correct names of the vendors who will be covered under the policy. Omitting a vendor or misspelling their name can result in a lack of coverage when it is needed most.

Another mistake often seen is failing to provide complete information about the products involved. The form requires specific details regarding the products that the vendors will be associated with. If this information is incomplete or incorrect, it may limit the scope of coverage and leave both the vendor and the original insured vulnerable.

Some individuals overlook the importance of understanding the exclusions listed in the endorsement. Each exclusion outlines circumstances under which coverage will not apply. Failing to read and comprehend these exclusions can lead to misunderstandings about what is and isn’t covered, potentially leaving vendors unprotected in critical situations.

Additionally, people sometimes neglect to check if the coverage required by a contract or agreement aligns with what is being provided in the form. If the insurance coverage is not as extensive as what the contract stipulates, it could lead to legal issues or financial losses. It is essential to ensure that the coverage meets or exceeds contractual obligations.

Another common oversight is not reviewing the limits of insurance. The form specifies that the coverage available is capped at either the amount required by the contract or the limits stated in the policy, whichever is lower. Many individuals fail to confirm that these limits are adequate for their needs, which can result in insufficient coverage.

Lastly, individuals often forget to sign and date the form before submission. An unsigned form may be considered invalid, and the coverage may not take effect. Always ensure that the form is fully completed, including a signature, to avoid any potential issues with coverage activation.

Documents used along the form

When dealing with the Additional Insured Vendors form, several other documents often come into play. Each of these forms serves a specific purpose and can help clarify responsibilities and coverage in various situations. Below is a list of these documents, along with a brief description of each.

Certificate of Insurance: This document provides proof of insurance coverage. It shows that the vendor has the necessary insurance in place, which can include liability coverage, property coverage, and other relevant policies.
Indemnity Agreement: This agreement outlines the responsibilities of one party to compensate another for certain damages or losses. It often accompanies contracts where one party agrees to protect the other from claims arising from their actions.
Contractual Agreement: This is a formal agreement between two or more parties that outlines the terms and conditions of a business relationship. It often specifies the insurance requirements and responsibilities of each party.
Waiver of Subrogation: This document prevents an insurance company from seeking reimbursement from a third party after paying a claim. It is often included in contracts to protect all parties involved.
Endorsements: These are amendments to an insurance policy that modify its coverage. Endorsements can add or change the terms of the original policy to better fit the needs of the insured.
Claims Report: This document is used to report incidents that may lead to a claim. It provides details about the event, the parties involved, and any damages incurred.
Product Liability Waiver: This waiver protects manufacturers and sellers from liability claims related to the products they distribute. It often requires the vendor to accept responsibility for any claims arising from the use of the product.

Understanding these documents can make navigating insurance requirements and vendor relationships easier. Each form plays a role in ensuring that all parties are protected and aware of their responsibilities. Having the right paperwork in place can help prevent misunderstandings and legal issues down the line.

Similar forms

Additional Insured – Owners, Lessees, or Contractors (CG 20 10): This document extends coverage to property owners, lessees, or contractors who are involved in a project. Like the Additional Insured Vendors form, it provides protection against claims arising from the insured’s operations, ensuring that the additional insured party is covered for bodily injury or property damage related to the project.
Additional Insured – Managers or Lessors of Premises (CG 20 11): This form is similar in that it grants coverage to managers or lessors of a premises. It protects them from liability claims resulting from the insured's use of the premises, paralleling the vendor's coverage for claims related to their products.
Additional Insured – Grantor of Franchise (CG 20 12): This endorsement provides coverage to franchise grantors. It is akin to the Vendors form as it protects the grantor from claims arising out of the franchisee’s operations, similar to how vendors are protected for claims related to the products they sell.
Additional Insured – State or Political Subdivisions (CG 20 13): This document extends coverage to state or local government entities. Like the Vendors form, it ensures these entities are protected from claims arising from the insured's activities, emphasizing the importance of liability coverage in various contexts.
Additional Insured – Designated Person or Organization (CG 20 14): This form allows for specific individuals or organizations to be added as additional insureds. It functions similarly to the Vendors form, providing tailored coverage for unique situations where specific parties require protection against claims.
Additional Insured – Product Completed Operations (CG 20 15): This endorsement covers parties involved in the completed operations of the insured. It parallels the Vendors form by protecting additional insureds from claims related to products after they have been completed and delivered.
Additional Insured – Contractors (CG 20 16): This document provides coverage to contractors working on a project. It is similar to the Vendors form, as it covers liability arising from the contractor's operations, ensuring that all parties involved in a project are protected against potential claims.
Additional Insured – Other Insurance (CG 20 17): This endorsement allows for the addition of other parties to the insurance policy. It shares similarities with the Vendors form by ensuring that multiple parties can be covered under the same insurance policy for claims related to their operations or products.

Dos and Don'ts

When filling out the Additional Insured Vendors form, attention to detail is crucial. Here are some important do's and don'ts to keep in mind:

Do ensure that you accurately list the name of the additional insured person(s) or organization(s) in the designated area.
Do verify that the policy number is correctly entered to avoid any issues with coverage.
Do review the specific terms of any contracts or agreements to confirm the insurance coverage aligns with what's required.
Do double-check the product information to ensure it matches what is stated in the Declarations.

Don't leave any sections blank, as incomplete forms can lead to processing delays.
Don't assume that the coverage is automatic; always confirm the conditions under which the additional insured status applies.
Don't overlook the exclusions listed, as they can significantly impact the coverage provided.
Don't forget to keep a copy of the completed form for your records and future reference.

Misconceptions

Understanding the Additional Insured Vendors form can be challenging, and several misconceptions often arise. Here are four common misunderstandings:

Misconception 1: All vendors are automatically covered under the policy.

This is not true. The endorsement specifically names the additional insured vendors in the schedule. Only those listed are covered, and the coverage is limited to certain circumstances related to the vendor's use of the products.

Misconception 2: The coverage is unlimited and applies to all claims.

In reality, the insurance provided to the vendor is subject to exclusions. For instance, it does not cover bodily injury or property damage resulting from the vendor’s own negligence or actions, nor does it cover claims arising from contractual obligations that the vendor has assumed.

Misconception 3: The coverage for vendors is as broad as the primary insured's coverage.

This is misleading. If a contract requires coverage for a vendor, the insurance will not be broader than what the primary insured is obligated to provide. This means that the vendor's coverage is limited to what is specified in the contract.

Misconception 4: The limits of insurance for vendors are the same as those for the primary insured.

This is incorrect. The limits of insurance for the vendor will be the lesser of what is required by the contract or what is available under the policy's declarations. The endorsement does not increase the overall limits of insurance.

Key takeaways

Key Takeaways for Using the Additional Insured Vendors Form

Ensure that the policy number is correctly filled out to avoid any coverage issues.
List the names of additional insured persons or organizations accurately in the schedule section.
Understand that coverage only applies for bodily injury or property damage related to your products sold by the vendor.
Be aware of specific exclusions, such as liability from contracts or agreements that the vendor assumes.
Know that the insurance provided will not exceed the limits required by contract or the limits specified in the declarations.
Review the exclusions carefully to ensure compliance with the vendor's obligations and avoid gaps in coverage.