Can I add an LLC as additional insured?
Asked by: Joanne Schmitt | Last update: January 8, 2026Score: 4.9/5 (50 votes)
Who should be listed as an additional insured?
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.
Does having an LLC mean you are insured?
Once you've registered as a limited liability company (LLC), your personal assets are protected against the risks of running a business. The next step is to make sure you have the right insurance coverage for your company.
Why add a company as an additional insured?
The purpose of additional insured endorsements is to keep the burden of risk closest to those parties most likely to create losses, which typically is third parties contracted to perform the work. In managing compliance, the first step is issuing a certificate of insurance request from the third party.
Can I add an additional business to my LLC?
Business clients frequently ask if they can structure multiple businesses under one limited liability company ( LLC) and whether it's a good idea. Generally, the answer is yes, and it depends.
Additional Insured Explained
Can I run two different businesses under one LLC?
The answer is yes--it is possible and permissible to operate multiple businesses under one umbrella LLC.
Should I add LLC after my business name?
California LLC Name Requirements. Your business's name must end with the words “Limited Liability Company” or the abbreviations “LLC” or “L.L.C.” You can even opt to abbreviate the words “Limited” and “Company” as “Ltd.” and “Co.” Most people just stick with “LLC”.
Can an LLC be named as an additional insured?
The Trust or LLC as Additional Insured
Some insurance companies are willing to cover the beneficial owners of the property and list the trust or LLC as an “Additional Insured/Interest”. In this case, the trust or LLC is covered by its interest in the property and liability claims made on the premises.
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.
Does it cost money to add an additional insured?
The cost to add an additional insured endorsement to your policy isn't very steep but it really all depends on your insurer. Some insurers even offer their clients a flat rate for adding as many additional insureds as they would like to their policies.
How much is a $2 million dollar insurance policy for a business?
On average, an insurance policy that offers coverage for up to $2 million can cost about $30 a month in premiums.
Do LLCs really protect you?
To protect your personal assets from business creditors and lawsuits, an LLC might be the right corporate structure for your enterprise. By creating a separate legal entity for your business activities, this provides you with an arms-length protection from those business liabilities, in most cases.
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 ...
Is named additional insured better than additional insured?
If limited coverage and rights under the policy are sufficient, an additional insured endorsement is likely the way to go. If the goal is to obtain complete and distinct coverage from all potential liability, being included as an additional named insured is your best bet.
Should a lender be named as additional insured?
As important as stipulating the amount of liability insurance to carry is the requirement that the lender be named as an additional insured on the borrower's policy.
Why would someone want to be listed as an additional insured?
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.
When should you be added as an additional insured?
Generally, if a smaller business wants to work with a larger business, the larger business will require that the smaller add them or their people as additional insured.
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.
Are you insured if you have an LLC?
Be aware that LLCs may be required to have certain types of business insurance. For example, most states require businesses with employees to have workers' compensation insurance. If your small business provides professional services to customers or clients, you can be at risk of a liability claim.
Can my LLC have two names?
Your business can have only one “legal” name at a time. But it can have any number of assumed or DBA (“doing business as”) names. So if you have some other business name ideas, you can use them as DBAs.
Should I add LLC to my business name?
Generally, you should use the LLC designator whenever it seems reasonable to do so. It tells everyone that you're business is a separate legal entity and can avoid issues later on.
Do I need an EIN for my LLC?
An LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to obtain an EIN. An LLC applies for an EIN by filing Form SS-4, Application for Employer Identification Number.
Can I have multiple businesses under one LLC?
The short answer is, yes, you can operate multiple businesses under one LLC. However, before you jump in, you have multiple options to consider. The route you choose can impact you in several ways (including your liability and tax obligations), so it's critical to do your homework and weigh the pros and cons.