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4 Reasons You Need a Vendor’s Endorsement


In order to do business, most companies require that you go beyond the basic coverage protection plans. A Vendor’s Endorsement is an insurance policy for business vendors which provides additional coverage beyond standard liability and against any harm that might occur from a manufacturer’s products. This offers insurance to vendors that sell or distribute a product. The five salient reasons you’ll need one as a vendor are:


  1. Increase Business. The vendor’s endorsement was initially meant as a way for the manufacturer to persuade retailers, wholesalers and other vendors to sell its products.
  2. Protect Yourself.  A Vendor’s Endorsement adds an “additional insured” status on your policy, allowing your vendor the assurance to sell and distribute your product without the worry of a claim harming their general liability coverage or premiums.
  3. It’s Practically Required. The majority of distributors and retailers will not do business without the “Additional Insured-Vendor” status.
  4. Less Worry. As a vendor, you have enough to worry about. The last thing you need is litigation from a customer harmed by products sold through your vendor.


As a manufacturer, you may provide a seller a vendor’s endorsement as a means of inviting the seller to distribute your products. The seller may be held responsible for the quality of the product despite any involvement in design or manufacturing. More often than not, the seller will look to someone else if you’re a manufacturer without a vendor’s endorsement.

Posted 11:00 AM

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