What it means
An additional insured is a party other than the named insured that is given certain rights under a liability policy, usually through an endorsement. Clients, general contractors, property owners and landlords commonly ask to be added.
Coverage for an additional insured is normally narrower than for the named insured. Most endorsements limit it to injury or damage caused, in whole or in part, by your acts or omissions in performing work for that party. Some forms cover ongoing operations only, while others extend to completed operations.
Being listed on a certificate does not make someone an additional insured. The policy must contain an endorsement that applies to them, either by name or through blanket wording tied to a written contract.
An example
Harbor Line Electric signs a subcontract with Keystone Builders that requires Keystone and the property owner to be additional insureds for ongoing and completed operations. Harbor Line’s broker checks the policy, finds a blanket endorsement for ongoing work but none for completed work, and asks the insurer to add one before a certificate is issued.
Names in this example are fictional.
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Does an additional insured get the same coverage as the named insured?
Usually not. Additional insured coverage is typically limited to claims arising from the named insured’s work or operations for that party, and many forms limit it further to ongoing or completed work. The exact scope depends on the endorsement wording, so the contract requirement and the endorsement should be compared line by line.
Is there a charge to add an additional insured?
Sometimes. Many general liability policies include blanket additional insured wording at no separate charge, while others price each scheduled endorsement or charge a flat fee. Umbrella and auto policies handle it differently again. The cost depends on the insurer, the class of business and how many parties need to be added during the policy term.
General information only. It is not legal or insurance advice. Only issued policy documents and endorsements describe actual coverage.