Additional insured is one of the most-requested and least-understood items in business insurance. If a landlord or client has asked for it, here is what it actually means.
What additional insured means
An additional insured endorsement adds another party, often a landlord, client, or general contractor, to your liability policy for claims connected to your work or your tenancy. If they are pulled into a claim arising from what you did, your policy may respond on their behalf, subject to the terms of the endorsement.
Additional insured vs certificate holder
These are not the same. A certificate holder simply receives proof of your coverage. An additional insured is actually added to the policy. A contract can ask for both, and meeting the additional insured requirement generally takes a specific endorsement, not just listing them on a certificate.
Why contracts require it
Landlords and clients require additional insured status so that if they are sued over something connected to your work, your insurance, rather than theirs, may respond first. It shifts the risk toward the party doing the work, which is reasonable, but it means your policy has to actually carry the endorsement on the terms the contract requires.
What to do
When a contract asks for additional insured status, confirm the endorsement is issued and that its wording matches the requirement, including whether it must be primary and noncontributory. A certificate alone does not prove the endorsement exists.
Questions to ask your advisor
- Does my policy actually carry the additional insured endorsement this contract requires?
- Does the endorsement wording match the contract, including primary and noncontributory if asked?
- Is the additional insured limited to ongoing operations, or does it include completed operations?
- If I change carriers, will the endorsement carry over the same way?
- Are there parties I am routinely asked to add that we should standardize?
Want guidance first? Compare your coverage. Already know what you need? Get a quote.