What is an Additional Insured?

An Additional Insured is a person or entity not insured under the insurance policy of another but for whom the named insured’s policy provides a certain degree of protection. An endorsement must be added to the insurance policy to effect additional insured status. The coverage is typically limited to liability from the primary insured’s activities or association with the additional insured.

In other words, an Additional Insured is someone who is not initially covered by an insurance policy but can be added to the policy at the request of the named insured. The additional party then enjoys the policy’s benefits, subject to its terms and conditions, without taking out a separate policy. This is often used in situations where the additional insured has a business relationship with the named insured that could expose them to certain risks or liabilities.

For example, in a construction project, a contractor may add the project owner or a subcontractor as an additional insured on their general liability policy. This protects the additional insured against any claims that may arise out of the contractor’s ongoing operations, such as property damage or bodily injury.

The extent of coverage can vary for an additional insured depending on the specifics of the policy and the additional insured endorsement. It’s important to note that the additional insured’s coverage is typically secondary to any other insurance they may have.