What is an additional insured?

Additional insureds are persons or entities who ask to be insured under the insurance policy with respect to work performed on a job.

They will typically be listed on the Certificate of Insurance, along with the policyholder. Additional insureds could include your customers or clients who have requested to be an additional insured for protection from liabilities that arise as a result of you working for them.

If you hire a contractor, you might ask them to add you to their liability insurance policy as an additional insured.

Additional insureds have the following protection:

  • Defense coverage: For lawyer’s fees, court costs, and settlements or judgements. Your policy will kick in if a third party sues your “additional insured” for work they did for you.
  • Third-party lawsuit coverage: Such as bodily injuries, property damages, and advertising injuries.
Example: Say you own an office building and you’ve hired a cleaning company. You will want to be added to their policy in case the work they do on your premises results in an injury. If someone slips on your freshly waxed floors, your name could end up on the suit because you own the building.

That’s why it’s always good to have protection— just in case.