What Is Broad Form Vendors Insurance?

Vendors need protection from manufacturers selling faulty products.

Broad form vendors insurance is offered as an endorsement to an existing commercial general liability policy. Coverage extends to named vendors who will sell your products at specified locations with a minimum coverage of $1 million.

Coverages

Vendors broad form protects vendors from injuries incurred by others due to faulty or toxic products they are selling or distributing on behalf of a manufacturer. This products liability vendor's endorsement should name the vendor as an additional insured under the policy.

Exclusions

Products covered are generally limited to items listed on the broad form endorsement; products that have not been unpackaged, repackaged, or altered in any way; and products that will not be made a part or ingredient of another product. If property damage or bodily injury occurs due to the negligence of the vendor, coverage may be denied.

Rates

Rates for this additional endorsement vary among insurance companies according to limits of liability purchased, named coverages and exclusions, deductibles, type, value and nature of products being sold, and whether the manufacturer is covering individual, named vendors or a group of various vendors.

References

• Sadler Products Liability Insurance: Vendor's Endorsement Under Products Liability
• Rough Notes: Product Vendors Coverage

Resources

• SMI: Vendors Additional Interest (Broad Form) Endorsement
• Dryden Mutual: Additional Insured-Vendors Broad Form