What it does
CG 20 44 adds as an additional insured any "vendor", without a schedule, for "bodily injury" or "property damage" arising out of "your product" distributed or sold in the regular course of the vendor's business. Coverage is no broader than the contract or agreement requires. It applies to the CGL and Products/Completed Operations coverage parts.
Who needs it
Product manufacturers, importers and brand owners whose products move through many retailers, distributors or online marketplaces.
Key provisions and limits
- Carries the same vendor exclusions as CG 20 15: contractual assumption of liability, unauthorized warranties, product changes, repackaging, failure to make inspections, off-premises demonstration or installation, relabeling, and the vendor's sole negligence.
- 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
- Introduced with the 12 19 edition, which makes blanket vendor coverage available on ISO paper.
- Ask the insured to keep the vendor agreements, since coverage depends on a contract requirement.
