What Is Additional Insured Status? How Can It Protect My Company?

February 24, 2020 Blog

Helpful Information from a Dependable Commercial Insurance Provider

It is possible that you have been hired to do some work for a client, and they required you to have them included on your general liability policy as an additional insured. The request might leave you perplexed. How do you add someone to your policy? Do you call your agent or commercial insurance provider? Does this mean your premiums will change? The reality is that including a third party as an additional insured is commonplace in business.

Understanding what an additional insured status is and how it can help protect your company can prove useful. The experienced team at Business Insurance Center can help you with adding an entity to your existing policies. We are a knowledgeable commercial insurance provider ready to assist you in safeguarding your enterprise.

What Is a Named Insured vs. Additional Insured?

The different terms used in the insurance realm may seem overwhelming. Here is a quick overview of insured parties in this context:

  1. Named Insured: If you review your general liability or another type of policy, you will notice on the certificate of insurance and declarations page that your company is listed as the named insured. This means your organization is part of the policy and directly receives the main provisions. You have full protection and an insurable interest.
  2. Additional Insured: When your client wants to be added as an additional insured, they receive coverage under your policy but in a limited way. They will still need their own liability insurance. Instead of having an insurable interest, the additional insured party only has a clear working relationship with you, the policyholder.

When Do You Need a Blanket Endorsement vs. an Additional Insured Endorsement?

Depending on the industry you’re in, you may only need to add one additional insured at a time. Contractors can benefit from using a blanket endorsement because they work with multiple contractors and subcontractors on a rotating basis. It makes it easier to handle the constant influx of updates to the policy.

What Are the Most Common Insurance Policies Using Additional Insured?

Quite often, an additional insured will be used in conjunction with a general liability policy when leasing property. Let’s say you lease office space in a building. Your landlord may want you to add them as an additional insured to your policy. Another instance includes professional liability coverage used by architects and lawyers who make mistakes in the course of their work.

Take Care of Your Coverage Obligations with Help from the Business Insurance Center

Ensure you fulfill your lease or contractual obligations when you add additional insured entities to your policy. An experienced commercial insurance broker at our offices can get you set up with a simple phone call. We help small companies, the self-employed, and entrepreneurs safeguard their enterprises. Give us a call today to experience the difference by partnering with us!

Request a quote online or call and speak with a knowledgeable and experienced broker at the Business Insurance Center. We have a 24/7 call center to serve you and an online Live Chat operator. 

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