Why would someone want to be listed as an additional insured?
Asked by: Ceasar Huels | Last update: October 27, 2025Score: 4.4/5 (25 votes)
Why would someone want to be an additional insured?
Defense Coverage: The main reason shippers want to be named as additional insured is for defense coverage. If a legal issue arises (like a lawsuit), they want to be assured that the freight broker's insurance will cover their legal defense.
Who should be listed as an additional 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.
What is the benefit of being added as an additional insured?
By providing coverage for the subcontractor via an additional insured endorsement, you are protecting yourself in the case that the subcontractor makes a costly mistake that leads to a lawsuit and the subcontractor is also protected in the event that you make a mistake that leads to a lawsuit in which they are named.
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.
Additional Insured Explained
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.
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.
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 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 ...
What is the purpose of the additional named insured?
Key Takeaways. An additional insured extends liability insurance coverage beyond the named insured to include other individuals or groups. An additional insured endorsement protects the additional insured under the named insurer's policy allowing them to file a claim if sued.
What is an example of an additional insured claim?
For example, say you use a contractor on a project who causes an accident that leads to you being 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.
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”.
Does adding additional insured increase premium?
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.
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.
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.
Does it make sense to be double insured?
Assuming Dual Coverage Is Always Better: While dual coverage can be beneficial, it's not always the best option for every situation. Don't assume that having two plans will automatically save you money. Evaluate the costs, coverage, and your specific healthcare needs to determine if dual coverage is cost-effective.
Why do you want a contractor to be insured?
Hiring a contractor that is fully insured protects you from lawsuits arising out of contractor actions, but it also prevents you from suffering financially should the contractor damage your property or cause injury to you or others.
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.
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.
Can a landlord force you to add them to your renters insurance?
Your landlord may require you to have renters insurance. They may also require you to include their name as an interested party on your policy before you're able to move in. If they don't ask to be listed as an interested party, then you don't have to add them.
Do I need to add insurance to my rental?
If you don't have a personal auto policy, you will need to purchase liability coverage through the rental car company.
What is an additional insured endorsement for a property owner?
Additional insured status refers to an endorsement that can be added to an insurance policy to extend coverage to a third party, such as a landowner.
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 add someone 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.
What does it mean to list someone as additional insured?
What does it mean to be an Additional Insured? An Additional Insured person or organization added by endorsement to a liability insurance policy is considered an insured under that policy and therefore can enjoy the benefits of that policy.