If your company uses vendors, you’re likely already familiar with vendor contracts. General provisions in the contracts, such as timing and delivery requirements, are well known, but did you know that inadequate insurance requirements in vendor contracts could put your company at risk? Learn the important, but frequently missed, insurance provisions that should be in all vendor contracts.
Your vendor contracts should clearly state the types of insurance your vendors must obtain before doing work with your company, including the minimum limits of liability that you expect the vendors to carry. Common types of insurance required of vendors are Commercial General Liability (CGL) insurance, Cyber Risk insurance, Professional Liability/Errors and Omissions (E&O) insurance, Automobile Liability insurance and Workers’ Compensation insurance.