What Is additional insured? Understanding Additional Insured.

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The additional insured is a type of state associated with general liability insurance that covers other persons or groups not originally named in the policy. With an additional insured note, the additional insured person is protected by the aforementioned insurance policy and can assert a claim if he is sued.


  • An additional insured extends the liability insurance cover beyond the named insured to other persons or groups.
  • An additional insured endorsement protects the additional insured under the named insurer’s policy by allowing them to file a claim if they are sued.
  • A general contractor can ask subcontractors to name the insured person. General and Owner of Subcontracting Policies.

Understanding Additional Insured:

Liability insurance provides insurance for the party named in the policy to protect against insurance claims arising from personal injury or damage to property or persons. Liability insurance covers the cost of cash payments or payments that the insured could be liable if the insured is held liable as legally liable.

An additional insurance status in a liability insurance extends the insurance coverage beyond the named insured person and includes other persons or groups who were not named in the original policy. The supplementary insured applies in principle if the main insured has to insure additional parties for new risks. their connection with the conduct or business of the named insured.

These new individuals or groups are added to the policy through a change called an acknowledgment. In the change, the additional insured person can be named within the policy. For other contracts, however, a general supplementary insurance note can be used, for which no details of the supplementary insured are required. Instead, a general description of the type of groups or individuals to which the coverage is extended is added to the aforementioned insurance policy.

Benefits of Additional Insured:

An additional insured change is useful as it protects the person or party to whom coverage has been extended under the above policy. If a claim is asserted or a legal dispute arises, this is also advantageous for the additional insured for an additional insured.

Part that must be insured as an additional insured, as it reduces the claims history of the additional insured, which can ultimately lead to lower premiums. Instead, any damage arising from claims against the policies of the primary insured will be booked and their premiums will likely increase.

Costs of Additional Insured:

The cost of adding an additional insured is usually low compared to the cost of the premium. The underwriting departments of insurance companies often consider the additional risk associated with additional policyholders to be marginal. In the event of disagreement, it is often a question of whether the additional insurance coverage should cover “independent negligence” of the additional insured person or whether it should only cover liabilities caused by the actions of the named insured person.

Examples of Additional Insured:

Typically, a larger, better performing company requires smaller operations to name the large company as an additional insured. The deal might seem counterintuitive, but it basically comes down to leverage. Do business with them.

  • Landlords

A landlord in a business building will regularly require that a tenant have the owner named as an extra insured at the tenants coverage policies. In this type of case, if there may be an twist of fate or loss at the tenants premises, the owner will gain from the tenants coverage coverage.

  • Contractors

A general contractor may require subcontractors to identify the general and owner in the subcontracting guidelines. For example, a general contractor can hire plumbers, electricians, and engineers to work on a project. General contractor as a third party, so that the contractual partner can bring or file a lawsuit against the general contractor if he is injured at work, if the general contractor or owner is sued for accidents that are protected by the subcontractor’s work, the subcontractor insurance the general contractor and the owner.

  • Manufacturers

Manufacturers may wish to insure sellers of their products as additional insured persons under the manufacturer’s liability guidelines. This coverage motivates the seller to promote the sale of the products as the seller knows that all product liability claims against the seller are covered by the manufacturer’s liability insurance.


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