Every business and organization relies on vendors or suppliers to provide a variety of services. These services may include delivering merchandise and supplies or providing maintenance and repairs as needed. Companies who effectively engage in vendor management activities bring value to their organization and typically enjoy the benefits of greater cost reduction.
While vendor management encompasses a wide range of responsibilities and tasks, one of the most essential components of all vendor management services is adequate insurance coverage.
Prepare for Everything
A quality insurance plan can help financially protect companies and organizations in the event of injuries to personnel or damage to property. Some of the most common coverage options chosen by businesses include:
- General liability
- Workers’ compensation
- Hired and non-owned auto liability
- Directors & officers
Depending on your specific risks and the insurance coverage requirements regulated by your state, you may need additional coverage as part of your vendor management services package. Insurance companies in the United States now face increased regulatory scrutiny regarding how they manage and monitor the risks related to third-party suppliers.
For this reason, analyzing and ensuring proper insurance coverage is imperative to protecting yourself. Minimize your risks and maintain positive, trustworthy relationships with your vendors by ensuring that adequate insurance coverage is in place for their businesses and yours.