What it does
CG 20 15 adds the vendors named in the schedule as additional insureds for "bodily injury" or "property damage" arising out of "your products" shown in the schedule that are distributed or sold in the regular course of the vendor's business. It applies to the CGL and Products/Completed Operations coverage parts.
Who needs it
Manufacturers and private-label suppliers selling through retail chains, e-commerce marketplaces and distributors that demand to be covered for product claims.
Key provisions and limits
- Vendor exclusions: liability assumed by contract (unless it would exist anyway), unauthorized express warranties, intentional physical or chemical changes, repackaging, failure to make agreed inspections or tests, demonstration, installation, servicing or repair off the vendor's premises, relabeling or use as an ingredient, and the vendor's sole negligence (with limited exceptions).
- No coverage for any insured from whom the named insured acquired the product or its ingredients.
- Coverage applies only to the extent permitted by law.
- Contract-based limits: coverage is no broader than any contract requires, the most paid for the additional insured is the lesser of the contract-required amount or the policy limits, and the endorsement does not increase limits.
Quoting and selling notes
- Large retailers often send their own vendor agreements; compare them with these exclusions, especially the sole negligence exclusion.
- For many vendors, CG 20 44 grants vendor status automatically when an agreement requires it.
- Vendor AI increases products exposure; underwriters will ask for sales by retailer and loss history.
Retailer and distributor requirements
- National retailers often require vendor AI, primary and noncontributory wording, specific limits and a minimum carrier rating; review the full vendor agreement before quoting.
- The sole negligence exclusion means the vendor is not covered for its own independent negligence (for example a store's own unsafe display), except for the listed repackaging and inspection exceptions.
- Ask for sales by retailer, product types and any private-label arrangements, since the vendor schedule lists both the vendor and "your products".
- Vendors added this way should consider CG 24 10 on their own policy to sit excess of the manufacturer's coverage.
