Additional Insured Coverage for Vendors

Q

We have a question about a denial of coverage based on the wording of an exclusion in endorsement CG 20 15 07 04, additional insured—vendors. Our insured sent its product to the vendor who then unpacked the product and assembled it for display. A bodily injury claim arose out of the product and our insured submitted the claim to the insurer, seeking coverage for both itself and the vendor. The insurer denied coverage for the vendor and cited the following exclusion: the insurance afforded the vendor does not apply to any physical or chemical change in the product made intentionally by the vendor.

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