Policy, Program and Procedures

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  • 1.  Insurance Requirement Questionnaire

    This message was posted by a user wishing to remain anonymous
    Posted 09-20-2023 04:06 PM
    This message was posted by a user wishing to remain anonymous

    Hi All,

    I am working on creating a questionnaire for vendors & business owners that will determine the kind of insurance that will be required based on the vendor type. This would be added onto our current onboarding process. I am trying to determine what kind of vendors require which type of insurance. Does anybody have a process like this they use that they would be willing to share?

    Below are the types of insurance that we will be asking for, along with the tentative vendor types that will required them. 

    -General Liability: All Vendors

    -Cyber Liability: Software, Any company that gets our data

    -Workers Compensation: Maintenance

    -Professional Liability: Law Firm, Accountants, Real Estate Brokers, etc.

    -Errors & Omissions: Law Firm, Accountants, Real Estate Brokers, etc.

    -Commercial Property: Lease Vendors

    Are there any other types of insurance you would suggest asking for? Any other pointers are appreciated. 

    Thank you!

  • 2.  RE: Insurance Requirement Questionnaire

    Posted 09-26-2023 04:28 PM

    It sounds like you are off to a great start here. However, as I am not a licensed insurance provider, I would suggest, if possible, consulting with the firm that provides insurance to your organization to get a professional opinion regarding which types of vendors require specific coverage.

    Keep in mind that just because your vendor has insurance, it may not be enough protection for your organization. In some cases, you may want your organization named as an additional insured party.  Vendors can extend their liability coverage to other parties, like clients, lenders, and joint-venture partners, by adding an additional insured endorsement to their policy. These parties must be listed on the endorsement and COI to be covered.

    There are many good reasons to have your vendor add your organization as an additional insured party. For example, let's say your organization suffers a cyber breach but is not listed as an additional insured party? An injured party, such as a customer, might sue your organization for damages even if the vendor you hired was responsible for the breach. Due to the breach, you could be liable for any losses incurred.      

    It is possible for organizations to avoid filing claims under their own policies by being added as additional insureds, which places financial responsibility on the party that will most likely cause the claim. However, there are a few things you need to know before you become an additional insured. Ensure you have a clear understanding of the difference between a blanket additional insured and a specific additional insured, as well as the particular contract provisions that can further reduce your liability.         

    I hope this information is helpful, but I would love to hear ideas from other members as well.