What Is an Additional Insured Endorsem*nt? - Insureon (2024)

FAQs

What Is an Additional Insured Endorsem*nt? - Insureon? ›

An additional insured extends liability insurance coverage beyond the named insured to include other individuals or groups. An additional insured endorsem*nt protects the additional insured under the named insurer's policy allowing them to file a claim if sued.

An additional named insured will have the same rights as a “Named Insured” but typically won't be responsible for the premium. They will however be entitled to notice of policy changes and cancellations and will have the same coverage as the Named Insureds but share the policy limits.

These parties may have an interest in a project you're taking on, so an additional insured endorsem*nt helps get everyone on the same page with respect to insurance coverage. There is typically no cost to name an additional insured, but some insurance companies may charge a nominal fee to amend the existing policy.

Basically, an Additional Insured is another individual or business the policyholder adds to an insurance policy, who is entitled to the same coverage benefits. A certificate holder receives verification of insurance and notifications of any changes made to a policy but is not covered by the policy.

There is also a risk of being under-insured or uninsured as additional insureds. Second, there is the risk of breaching a contract, thus potentially becoming the insurer of the other party when they are the party obligated to provide additional insured coverage.

Endorsem*nt/riders are important because they address issues or items not in the original contract or policy. Additional Coverage-An endorsem*nt that adds or includes coverage that would otherwise be excluded.

The benefits could include the right to legal representation against third-party claims or coverage for damage caused. As an additional insured, they'll be able to keep losses off their history and protect their premiums.

Why would a company or person ask to become an additional insured? It boils down to larger businesses having less financial risk if something unanticipated happens. It may seem unfair, but it's a way for them to protect their own business in exchange for hiring the small business.

Adding a loss payee to a policy will not generally cost extra since it creates no additional risk. If you are adding an additional insured, your premium will increase. Adding a loss payee to a policy will not generally cost extra since it creates no additional risk.

Property owners, both commercial and residential, commonly require any contractor working on their property to deliver a “certificate of insurance” naming the property owner as an “additional insured.” This often arises when a resident owner wishes to renovate his/her apartment in a co-op or condo building or an ...

Where do you put an additional insured on a certificate of insurance? ›

On COI's, additional insured entities are indicated in these two ways: By an X or checkmark in the ADDL INSR box on the General Liability section of the COI, and/or the additional insured entity is named in the DESCRIPTION OF OPERATIONS section.

With an attached endorsem*nt, a certificate of insurance lists additional insured entities in the Certificate Holder section of the document. Checking this section will quickly tell you who is covered by the policy if you see a check next to ADDL INSR on the document.

The cross-party exclusion is common, but many do not focus on it or understand its implications. This exclusion prohibits an insured party from suing another insured party under the same policy.

Only the “first named insured” may agree to policy changes. Additional named insureds must obtain approval from the “primary named insured” (and the insurer) before modifying the policy. Thus, additional named insureds need to be aware that the policy can change without their approval.

An additional insured extends liability insurance coverage beyond the named insured to include other individuals or groups. An additional insured endorsem*nt protects the additional insured under the named insurer's policy allowing them to file a claim if sued.

If you're an additional insured on the contractor's policy, you can make a claim to pay for the damages and legal fees, rather than relying on your own insurance. Most companies include language in their contracts for contractors to indemnify, or pay for, any liability lawsuits that stem from their work.