Overview
An additional insured is a person or organization added to your liability policy so that your coverage also protects them for claims arising out of your work or your premises. Landlords, general contractors, project owners, and larger customers commonly require additional insured status before signing a lease or contract.
The requirement is routine, but satisfying it incorrectly — or agreeing to wording your policy cannot deliver — is one of the most common contract-related insurance mistakes.
What additional insured status does
When you add another party as an additional insured on your general liability policy, they can look to your policy — not just their own — if they are sued because of your operations. A landlord sued after your customer slips in your store, or a general contractor sued over your subcontracted work, commonly expects your policy to respond first.
How it is added
- By endorsement — either naming the specific party or through blanket wording covering anyone you agree in a written contract to add
- Scheduled endorsements name one party; blanket endorsements are commonly more practical for businesses that sign many contracts
- Ongoing-operations wording covers work in progress; completed-operations wording covers claims after the work is done — construction contracts commonly require both
- A certificate of insurance evidences the status but does not create it — the endorsement does
Watch for these contract phrases
- "Primary and noncontributory" — your policy pays first, without contribution from the other party's insurance; your policy needs matching wording
- "Including completed operations" — requires a completed-operations additional insured endorsement, commonly for a stated number of years after the work
- "Waiver of subrogation" — a separate requirement that often travels with additional insured wording
- Minimum limits — confirm your limits, including umbrella, meet the stated figures before signing
Common mistakes
- Signing a contract before confirming your policy can provide the required wording
- Assuming a certificate alone satisfies the requirement without the endorsement behind it
- Overlooking completed-operations requirements that extend years past project close-out
- Adding parties as additional insureds informally, without a written contract requiring it
Related coverages
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Frequently asked questions
Does adding an additional insured cost anything?
Blanket additional insured endorsements are commonly included or added for a modest charge. Scheduled endorsements for specific parties may carry a small fee. The bigger cost consideration is that claims against additional insureds draw on your limits.
Is a certificate of insurance the same as being an additional insured?
No. A certificate is evidence of coverage at a point in time. Additional insured status is created by policy endorsement. A certificate can note the status, but the endorsement is what makes it real.
Should I add anyone who asks as an additional insured?
Only where a written contract requires it and the request is proportionate to the relationship. Each additional insured can draw on your policy limits, so the status should track genuine contractual obligations.