Marc Moore
New Member
- 1
Hello All,
I fabricate a piece of equipment that is made up of parts purchased from vendors that have their own insurance policies. My GL and Products Liability carrier has allowed me to exclude those parts (with a valid ins certificate from each vendor) when calculating my year end audit in years past. But this year, they decided to calculate audit premium based on gross sales instead of an adjusted number. The monetary difference between the two methods is significant.
Were they wrong before or are they wrong now? This seems to be a situation similar to GCs and subcontractors where premium is owed if the sub doesn't carry their own insurance, but it is excluded if they provide a certificate.
I have researched the subject and found a vendor endorsement that sounds like it could apply. Would those be standard with my vendors policies? Or is that even necessary in this scenario?
Thanks!
I fabricate a piece of equipment that is made up of parts purchased from vendors that have their own insurance policies. My GL and Products Liability carrier has allowed me to exclude those parts (with a valid ins certificate from each vendor) when calculating my year end audit in years past. But this year, they decided to calculate audit premium based on gross sales instead of an adjusted number. The monetary difference between the two methods is significant.
Were they wrong before or are they wrong now? This seems to be a situation similar to GCs and subcontractors where premium is owed if the sub doesn't carry their own insurance, but it is excluded if they provide a certificate.
I have researched the subject and found a vendor endorsement that sounds like it could apply. Would those be standard with my vendors policies? Or is that even necessary in this scenario?
Thanks!
