Also known as: what is vendors coverage · vendors endorsement · vendors additional insured
An endorsement that extends a manufacturer's or distributor's liability policy to cover its resellers and distributors for claims arising out of the named insured's products.
Vendors coverage is an endorsement that adds specified vendors, such as distributors and retailers, as additional insureds on the named insured's general liability and product liability policy. It protects those vendors against product liability claims tied to the products they sell or distribute for you, but not against their own independent acts. For a hardware or defense-tech startup that sells through distributors or resellers, a distribution agreement often requires you to add the channel partner via a vendors endorsement (commonly ISO form CG 20 15). Coverage is usually limited to the product 'as supplied' and excludes repackaging, relabeling, physical alteration, or the vendor's own negligence.
Manufacturer shall add Distributor as an additional insured (vendors coverage) with respect to products and completed operations liability arising out of Manufacturer's products.
Vendors coverage is an endorsement on a manufacturer's or distributor's liability policy that names certain vendors, like distributors and retailers, as additional insureds. It covers those vendors for product liability claims arising out of the products they sell or distribute on the named insured's behalf. It does not cover the vendor for its own independent wrongdoing.
A standard vendors endorsement (CG 20 15) covers the product essentially as it was supplied. It typically excludes the vendor's repackaging, relabeling, physical modification, improper installation, and the vendor's own negligence. If a distributor alters or demonstrates your product and causes harm, that conduct usually falls outside the vendors coverage.
You need vendors coverage when you sell physical products through third parties, such as distributors, resellers, or retailers, and their agreements require you to name them as additional insureds. Hardware, robotics, and defense-tech startups that move product through channel partners commonly face this requirement, and it is added by endorsement to your general liability and product liability policy.
Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.
Last updated: July 2026.