Due Diligence and Ongoing Monitoring

Hi All,

Need some guidance and best industry practice on insurance coverage for vendors:

- Is it mandatory for 'All' suppliers to have the liability coverage? Or is it only based on high risk, or only if the vendor has access to internal data?
- What components in the Insurance are absolutely essential? Like CGL/ E&O/ aggregate or per occurrence etc.?
- Any inputs on typical minimum coverage $ values would also be very helpful.

Thanks in advance,
Loveleen

Hi All,

Any inputs on this will be very helpful, thanks again.

Cheers,
Loveleen

I think you need to cater the proof of insurance requirement to your company's risk tolerance and the type of services provided.  For example, for our critical vendors where we have significant financial penalties from non-performance, we would ask for certificate of insurance sufficient to cover the specified type of incident and sufficient to make us whole.  For consulting/temp agencies, we would ask for proof of workers compensation.  For vendors that don't come onsite, don't have access to NPI, etc. we would not ask for proof of insurance. Hope this helps.

I am interested in this as well as a financial services company... Also, what reviews do you all conduct of the insurance information?  Is it just for reasonableness based on the spend with the vendor?  We don't have an Insurance SME for review of the COIs, so having the vendor-owners understand the need and level of scrutiny is what we're trying to understand.

Suggestion: I would love to see a Venminder webinar or a short video on insurance coverage and best practices.

Hi,

Venminder has the following blog that explains insurance coverage vendors should have - click here. We'll continue to keep this topic in mind for other content as well. 

Thank you,

Brittany Padgett
Community Manager