What is an additional insured?
Short answer
An additional insured is a person or company added to your liability policy so they receive protection under it, usually for claims arising out of your work or your use of their premises. The endorsement wording decides how broad that protection is, and a certificate of insurance alone does not grant it.
How additional insured status works
The named insured buys the policy. An additional insured is a separate party, such as a landlord, general contractor, or enterprise client, added by endorsement so the policy can respond to claims against them. Their protection is usually limited to liability arising out of your operations, premises, or completed work.
What the endorsement usually covers
- Defense costs for the additional insured in claims tied to your work
- Claims from a landlord or property owner for incidents at your leased space
- Contractual requirements in construction, vendor, and enterprise agreements
- Completed operations, when the endorsement includes it rather than ongoing operations only
What it does not cover
Additional insured status does not make the other party insured for their own negligence, and it does not cover their independent operations. Most endorsements are limited to your acts or omissions, and some exclude completed operations, product liability, or claims arising after the policy period ends. It also does not raise your limits, so their protection comes out of the same policy limit.
Certificate of insurance vs. endorsement
A certificate of insurance is proof that coverage exists on the date it was issued. The endorsement is the actual policy change that grants additional insured status. Clients and landlords often ask for both, and a certificate alone does not create coverage or amend the policy.
What to check before you agree to it
- Whether the endorsement is blanket or scheduled to a specific party
- Whether primary and non-contributory wording is included, and whether your carrier allows it
- Whether waiver of subrogation is required and available
- Whether the contract demands higher limits than your policy provides
Common questions
- Does adding an additional insured increase my premium?
- Often not for a blanket endorsement, but it can affect pricing or availability when the contract requires primary and non-contributory wording, waivers of subrogation, or higher limits. Ask before signing a contract with those terms.
- Is an additional insured the same as a named insured?
- No. A named insured owns the policy and controls it; an additional insured receives limited protection for claims tied to the named insured's work. The additional insured generally has no rights to the policy otherwise.
- Can I add an additional insured after the policy starts?
- Yes, if the carrier allows it. Some policies include blanket additional insured wording so no endorsement is needed per contract, while others require a scheduled endorsement naming each party.
- Does an additional insured get their own limit?
- No. Their protection shares your policy limit unless the carrier issues a separate limit, which is uncommon. That is why contract requirements should be matched against your actual limits.
Want to know what this means for your business?
Tell us what you do and we will explain which coverage responds, which wording to check, and what to ask a carrier. No obligation, and no coverage is bound by asking.
Professional Resource Insurance Agency, LLC. CA License #0G81238. Definitions are general information, not coverage advice for a specific policy.