Everything you need to know about additional insureds

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An additional insured is a party (a person or an organization) that’s not included on a liability insurance policy but is added at the request of the named insured, usually via a policy endorsement, related to a specific job, activity or location. Additional insureds may also be named in the “who is an insured” section of a policy, and some liability parties automatically include specific parties, like landlords or contractors.

What types of insurance can you add additional insureds for?

You can add additional insureds to commercial general liability, commercial auto liability and additional interests commercial property insurance policies. For general and auto liability, the requirements are that the additional insured have a business relationship with the named insured and that the person or organization seeking coverage. For property insurance policies, the additional interest must have an insurable interest in what’s being covered, like as a lender, for example.

The additional insured must also meet any other terms described in the additional insured endorsement or policy.

How much coverage is provided under an additional insured endorsement?

Ultimate, this depends on the language in the specific endorsement, but generally the coverage is somewhat limited. It usually covers legal defense, personal injury and property damage compensation. The additional insured is not usually afforded the same coverage status in the policy as the insured/policyholder.  

Basically, if it’s not specifically written into the endorsement, it’s not covered, and individuals and organizations should also carry their own liability insurance.

Take a look at the commercial general liability, commercial auto and commercial property insurance solutions we offer, and give us a call if you have more questions about additional insureds.

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