Additional Insured

Overview

An Additional Insured is a party that is added to another party's insurance policy, gaining coverage rights under that policy. This is one of the most important — and most misunderstood — concepts in COI compliance.

How It Works

When you hire a contractor to work on your property, you face a risk: if the contractor causes damage or injury, you could be sued as the property owner. By requiring the contractor to add you as an Additional Insured on their General Liability policy, you gain coverage under their policy for claims arising from their work.

Additional Insured status is granted through an endorsement — a modification attached to the underlying policy. The endorsement specifies who is covered and under what circumstances.

Additional Insured vs. Certificate Holder

This is the most common point of confusion in COI compliance:

• Certificate Holder: Receives the certificate document and may be entitled to notice of policy changes. Has no coverage rights.
• Additional Insured: Has actual coverage rights under the policy for claims arising from the named insured's operations.

Being listed as the certificate holder does NOT make you an Additional Insured. These are separate designations that must be independently verified.

Common Endorsement Forms

• CG 20 10: Provides Additional Insured coverage for ongoing operations
• CG 20 37: Provides Additional Insured coverage for completed operations
• CG 20 26: Designated person or organization (broader coverage)

Example

A commercial landlord requires all tenants to add the landlord as Additional Insured on their General Liability policies. When a tenant's customer slips and falls in the tenant's space and sues both the tenant and the landlord, the landlord can tender the claim to the tenant's insurer because they are an Additional Insured.