Landing a supplier contract as a small business is always a time to celebrate. It’s an even bigger celebration when that contract is with a large Fortune 500 company like Waste Management. Landing a deal with any Fortune 500 company can take weeks or even months, so it’s a well deserved win when it finally goes live and you can breathe a sigh of relief – it’s (finally) official! Every small business and entrepreneur knows that feeling, it’s fantastic. Oftentimes, that last final checkbox before you can begin your contract is Waste Management’s Insurance requirements. 

The insurance requirements in your Waste Management contract (like most insurance requirements) are lengthy and full of legal jargon that’s difficult to understand. For that reason, we looked at the supplier insurance requirements for Waste Management (along with numerous others), and broke them down in an easy to read format. In this article, you’ll learn which coverages, limits, and endorsements Waste Management requires, what they mean, and how to easily meet the requirement

If you’re a vendor or contractor providing Services rather than Physical Goods, read Waste Management Contractor Insurance Requirements to learn about the requirements for your Risk Tier.

Waste Management Supplier Insurance Requirement – in Technical Terms

This is the requirement stated in Waste Management’s Supplier Terms. Don’t worry, we’ll decode this in the next section!

“Supplier shall maintain, at its sole cost, and shall require any subcontractors it may engage to maintain at all times during the Term of the Agreement and for two (2) years following acceptance of the Products and Services, the insurance coverage set forth below, with one or more insurance companies licensed to do business in the state where the work is performed and with a rating of not less than A, X or better as shown in the most current issue of the A.M. Best Rating Guide.


Bunker translation: You need to carry the insurance while you’re actively a supplier for Waste Management, and retain it for 2 years following with an A rated AM Best carrier. 


Workers’ Compensation Insurance as required by laws and regulations applicable to and covering any subcontractor’s employees whose performance of Services in connection with Supplier’s obligations hereunder may be completed at any Company location, and all employees of Supplier engaged in Supplier’s performance of its obligations under this Agreement.

Employers’ Liability Insurance protecting Supplier against common law liability in the absence of statutory liability, for employee bodily injury arising out of the master-servant relationship with a limit of not less than $1,000,000.

Commercial General Liability Insurance including coverages for premises/operations, products/completed operations, bodily injury, property damage, independent contractors and coverage for insured contracts specifically in support of the contractual obligations of Supplier including, without limitation, any indemnity obligations contained in the Agreement, with limits of liability of not less than $1,000,000 per occurrence and $2,000,000 in the annual aggregate and naming Company and its Affiliates as an additional insured.

Professional Liability to cover the actual or alleged errors & omissions arising out of the professional services rendered by or on behalf of Supplier with limits of not less than $1,000,000 per occurrence.

Automobile Liability Insurance including non-owned and hired vehicle coverage with limits of liability of not less than $1,000,000 per occurrence combined single limit and naming Company and its Affiliates as an additional insured.

System Security/Cyber Liability* covering all damages and expenses related, but not limited to, breaches of data security from all Services. Such insurance shall have a limit of not less than $5,000,000 per occurrence. *Coverage to include the Blanket Vicarious Liability for Other Entities Endorsement. See sample wording below. If this endorsement is unavailable from Supplier’s insurance carrier, the policy will name Company and its Affiliates as an additional insured.

Commercial Crime Insurance providing coverage for, but not limited to, loss sustained by Company resulting from theft or forgery committed by Supplier’s employees. Such insurance shall have a limit of not less than $5,000,000 per loss and naming Company and its Affiliates as loss payee.

Supplier shall provide a certificate of insurance evidencing such insurance coverage upon the Effective Date and upon request by Company that shall provide that the insurance carrier will give Company thirty (30) days’ prior written notice of any cancellation or non-renewal of any policy or policies identified in such certificate. 

* Blanket Vicarious Liability for Other Entities Endorsement. 

Sample wording: BLANKET VICARIOUS LIABILITY FOR OTHER ENTITIES ENDORSEMENT (PRIMARY TO ENTITY’S INSURANCE) It is understood and agreed that the Policy is amended to include any entity the Named Insured or any Subsidiary is required by contract to include as an insured under this Policy but solely to the extent a claim is made against it for a wrongful act of an Insured. This Policy shall be primary to any insurance maintained by such entity, to the extent the claim is covered by this Policy pursuant to this endorsement. Nothing herein shall serve to confer any rights and duties to such entity under this Policy, other than as provided herein. There shall be no coverage afforded to such entity as a result of its independent wrongful acts. All other terms and conditions of the Policy remain unchanged.”

Alright, Let’s Break it Down!

Every insurance requirement can be broken down into Coverages (what the policy covers), Limits (how much is covered), and Endorsements.

Coverages & Limits

Endorsements

  • Primary and Non-Contributory Language
  • Additional Insured: Waste Management and its affiliates should be listed as additional insured on your general liability and automobile liability policies.
  • Loss Payee: Waste Management and its affiliates should be listed as the Loss Payee on your commercial crime policy.
  • Blanket Vicarious Liability for Other Entities Endorsement: Your Cyber policy should have this endorsement (using the sample wording below). If this endorsement is unavailable from your insurance carrier, you’ll need to list Waste Management and its affiliates as additionally insured on your Cyber policy as well.

Sample Wording for Blanket Vicarious Liability for Other Entities Endorsement:

BLANKET VICARIOUS LIABILITY FOR OTHER ENTITIES ENDORSEMENT (PRIMARY TO ENTITY’S INSURANCE) It is understood and agreed that the Policy is amended to include any entity the Named Insured or any Subsidiary is required by contract to include as an insured under this Policy but solely to the extent a claim is made against it for a wrongful act of an Insured. This Policy shall be primary to any insurance maintained by such entity, to the extent the claim is covered by this Policy pursuant to this endorsement. Nothing herein shall serve to confer any rights and duties to such entity under this Policy, other than as provided herein. There shall be no coverage afforded to such entity as a result of its independent wrongful acts. All other terms and conditions of the Policy remain unchanged.

Additional Requirements

Certificate of Insurance Specifications:

  • Your business name should be the Named Insured
  • Your certificate should be a standard ACORD 25 form
  • List your vendor number and all names of insured subsidiaries doing business with a vendor number
  • Show the Self-Insured Retention (SIR)
  • List Waste Management as Certificate Holder as well as Additional Insured, using the address of your local branch.

How to Get the Right Policy

The best way to get a certificate of insurance that meets all of your contract requirements on the first try is to purchase a pre-built Waste Management Supplier policy. That way, you’ll know that all of the endorsements, language, coverages and limits are exactly right, without having to spend hours on the phone with an insurance agent.

Click above for a pre-made policy. Fill out a quick, 5 minute application and one of our licensed advisors will reach out to get you a quote as soon as possible. Our goal is to make this as smooth and affordable as possible so you can officially sign your contract and get started with Waste Management!

If you already have an agent or broker that you enjoy working with, make sure you’re as specific as possible about your business and your Waste Management insurance requirements. It’s a good idea to copy and paste the exact contract wording, including endorsements and additional insured language, so that your agent knows what the COI should look like.

If you have any questions, reach out to our team of advisors anytime, at support@buildbunker.com, or give us a call at (877) 968-9108.

If your interested in learning more visit https://www.buildbunker.com/ or contact us at support@buildbunker.com

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