I am trying to get general commercial liability for a business I am starting in Ontario, Canada. I just got a quote saying that they require me to be added to my supplier’s insurance. I don’t see why I need to be mentioned on the supplier’s insurance when I am buying the product and reselling, I am not working for the supplier. I am working independently, as a wholesaler, you could say. Will this be a hastle, will the supplier or his insurance have lots of questions for me, or is it standard?
Thanks all!
Right. Your supplier probably gets LOTS of these requests, to add the retailer as additional insured – vendor. MOST if not ALL of the businesses he sells to, will be requiring this.
You are buying the product and reselling. If the product is defective, and there is a product liability lawsuit involved, you want cover under the supplier’s policy, not yours.
Most insurance companies will REFUSE to give you product liability coverage, if your supplier doesn’t have any product liability coverage, or won’t add you to their policy.
As a wholesaler, you WOULD be named in any lawsuit for a product liability case.
That’s Vendor’s Liability endorsement. Check your contract with your supplier.
Are you just reselling or do you make adjustments, repairs, improvements on any of the products you are to sell?? If you are just reselling, you shouldn’t have any problems obtaining this coverage from your supplier.
Basically what it says is that your supplier’s insurance CGL will defend you and provide protection in case of bodily injury and/or property damage due to the manufacturer’s / supplier’s legal liability for the products it distributes or manufacture.