While it’s common to sell what you make at your floral shop or garden center, it’s also likely you’ll sell or distribute another manufacturer’s products. But doing so could open you up to certain liabilities—if what they provide you is defective, toxic, or faulty. That’s where broad form vendors insurance comes in.
Broad form vendors is an endorsement to the manufacturer’s commercial general liability policy. It protects you when selling or distributing items on behalf of a manufacturer. The Insurance Services Office, which advises insurance companies, created a specific additional insured endorsement for these risks. The Additional Insured–Vendors endorsement (CG 2015) covers liability arising from the sale of a product.
But very few vendors specifically ask for an endorsement from the manufacturer. It generally comes down to three reasons:
- A retailer often doesn’t understand that specialized coverage exists, or know when to request it
- The vendor may feel they don’t have any bargaining power and don’t ask the manufacturer for coverage
- Some vendors believe they have sufficient coverage, because their manufacturer’s policy contains a regular broad form additional insured endorsement
Here’s how a vendor’s endorsement differs from the standard broad form additional insured endorsement:
- Standard broad form additional insured endorsement: Provides coverage to a vendor as an additional insured for liability that’s caused in whole or part by the named insured’s acts or omissions.
- Vendor’s endorsement: Provides more specific coverage for the vendor for liability arising out of the named insured’s products.
Remember, a smaller retailer faces the same exposure as a larger one. That’s why you should be sure to ask your manufacturer about a broad form vendors endorsement—particularly from manufacturers of products that can be more dangerous like chemicals, tools, lawn and garden equipment, and electrical devices.
All of us at Hortica are here to help you answer questions about these kinds of issues, as well as questions about the other forms of coverage you might need. Your Hortica representative is ready to talk with you.
Learn more about protecting your business, check out the Hortica Resources section.
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