Can anyone be added as an additional insured?

Asked by: Miss Vada Durgan MD  |  Last update: May 20, 2025
Score: 4.1/5 (9 votes)

Who Should Be Added as an Additional Insured? A person or group at risk of being sued due to a connection to the primary insured's business or operations should be added as an additional insured. Examples include a landlord added to a tenant's coverage or a contractor added to a subcontractor's coverage, among others.

Who can be listed as an additional insured?

Anyone can become an additional named insured! Typically, an additional named insured will be someone close to the policyholder or relevant to their business dealings. For example, a co-owner, vendor, or family member are some common examples of secondary and additional named insured parties.

How much does it cost to add someone as an additional insured?

Additional Insured – Owners, Lessees or Contractors – Scheduled Person or Organization (CG2010 4/13) Normally Included in most policies and are provided for Free.

What is the risk of adding an additional insured?

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.

How do you add someone as an additional insured?

To add an AI to a CGL policy, the named insured should contact their insurer and provide the party's name and address. The cost to list an AI varies depending on the insurance company but can be as low as $50. Some insurers even permit policyholders to pay a flat rate and add as many as they would like.

Additional Insured Explained

36 related questions found

Can anyone add you to their insurance?

Most insurance companies allow you (and may require you) to add another driver to your car insurance policy if the person drives the insured cars regularly or shares the same permanent residence. Most insurers will also allow you to share a single car insurance policy with someone if you live with them.

Why list someone as an additional insured?

The main benefit of an additional insured endorsement is that it will reduce the impact of the policy owner's loss history since the additional insured status serves to make sure that the financial responsibility of the claim is placed on the policy of the party that is most likely to be responsible for the claim.

Should my contractor add me as an additional insured?

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 ...

Why do landlords want to be listed as additional insured?

By adding your landlord as an additional insured, you provide them with an extra layer of protection and streamline the claims process if any unforeseen incidents occur. Ensure you carefully review your lease agreement, communicate with your insurance provider, and obtain proof of additional insured coverage.

Should I add a client as an additional insured?

If your client was added as an additional insured, it would more than likely jeopardize your client's coverage, rather than increase it. If your client became a named insured on your PL policy, the client would, theoretically, be covered to the same extent as your design firm.

What is the difference between an additional insured and an additional named insured?

The named insured extends protection to the additional insured under the terms and conditions of the named insured's policy. It should be noted, however, that coverage provided under the additional insured endorsement is often limited to liability arising out of acts performed by or on behalf of the named insured.

Will my insurance go up if I add someone?

Adding a new driver to your existing policy could also drive up your price, especially adding teen drivers or someone with a poor driving record.

How much is it to add someone on your insurance?

Most car insurance companies won't charge a fee to add more drivers to your policy, but each driver that you add to your policy impacts your policy price.

Does it cost money to add an additional insured?

The cost of adding an additional insured is typically low, compared to the costs of the premium. Insurance company underwriting departments often consider the additional risk associated with additional insureds as marginal.

Can I add an LLC as additional insured?

Also, listing the trust or LLC as “Additional Insured” means that the trust or LLC and the individuals can be covered in one policy. However, a downside for this case is that there is less separation between the individuals and the entity itself as there is with listing the trust or LLC as “Named Insured”.

What is the difference between an additional insured and a certificate holder?

Certi cate holders hold proof of insurance, or certi cates of insurance (COIs), from insureds they are working with while additional insureds are those who have coverage extended to them through the “named insured's” policy.

Who needs to be listed as additional insured?

In an insurance policy, an additional insured refers to anyone other than the policyholder who is covered by an insurance policy. Coverage might be limited to a single event or it could last for the policy's lifetime.

Should I add my property manager as additional insured?

The short answer is an emphatic YES. If you don't add your property manager as additional insured, and you and/or your property manager are sued by a neighbor, tenant, visitor, etc.

How do I add an additional insured to my property policy?

Adding an additional insured to a policy provides an extra layer of protection for the named party, covering them for certain risks and liabilities and helping mitigate their exposure to loss and damages. In some circumstances, adding an additional insured may be required by law or contract.

What are the risks of naming an additional insured?

If a judgement were to arise against both parties you would both pay out from the same set of limits on your policy. Instead of the named insured carrying a dedication 1 million for each occurrence its carrying 1 million per occurrence that may need to be shared with the additional insured involved in the claim.

Why should my landlord be additional insured?

Risk Management: By being listed as an additional insured, landlords can manage and mitigate risks associated with leasing their property. It ensures that insurance coverage is in place for various incidents, reducing the potential financial impact on the landlord.

Can you be an additional insured without a contract?

There is no additional insured status unless there is a contract or agreement which requires it. Many blanket additional insured endorsements are insurer proprietary endorsements, not ISO endorsements.

What is an additional insured for dummies?

Additional insured works similarly to when you get into a car accident, and the other person is at fault. In that case, you file a claim with their insurer. Then they have to pay any deductibles, and their insurance company has to pay to repair your car. The accident and claim filed go onto their record, not yours.

How do I add an additional insured to my certificate of insurance?

If you want to be added as an additional insured, you need to request that the vendor adds additional insured coverage to the policy by adding an endorsement form. Adding an additional insured to a policy does not have to be complicated, but you do have to request this in an agreement or contract.

What is the difference between additional insured and policyholder?

While policyholders are entities that purchased the policy from a provider, certificate holders possess proof of insurance and CGL policies. Additional insureds are parties other than the initial policyholders that coverage has been extended to.