Tender of Defense

Overview

Tender of Defense is the mechanism by which you invoke your Additional Insured rights. When you are named as a defendant in a lawsuit arising from a vendor's work, you formally notify the vendor's insurer and request that they assume your defense. This transfers both the legal defense costs and any resulting indemnity payment to the vendor's policy.

How to Tender

A tender must be made in writing to both the vendor and their insurer. It should include: the lawsuit complaint, your Additional Insured endorsement documentation, the relevant contract requiring Additional Insured status, and a demand that the insurer accept your defense. Timeliness matters — tender as soon as you are served with the lawsuit to avoid waiver arguments.

Why COI Compliance Matters

A tender of defense only works if you have a valid Additional Insured endorsement on the vendor's policy at the time of the incident. This is precisely why verifying Additional Insured status during COI review is not an administrative task — it is the foundation of your ability to transfer defense costs when a claim actually occurs. Without a verified endorsement, you have nothing to tender.