"Please add us as additional insured on your policy." If you run a business, you've heard this request — from landlords, clients, general contractors, or venues. It's one of the most common contract requirements in commercial insurance, andunderstanding it correctly protects both your business and your relationships.
What Is an Additional Insured?
An additional insured (AI) is a third party added to your general liability policy who gains coverage for claims arising from your work or operations.
Key distinction: the AI is covered for your negligence — not their own independent negligence. If a customer slips on a wet floor YOU created on THEIR property, both you and the AI (property owner) are protected under your policy.
Who Requests Additional Insured Status?
- Landlords: Your lease almost certainly requires you to name the landlord as AI on your GL policy
- General contractors: GCs require all subcontractors to add them as AI
- Property owners: Anyone whose property you work on or occupy
- Event venues: Venues require event organizers to add them as AI
- Clients: Professional service clients may require AI status in their contracts
- Mortgage holders: Banks and lenders on commercial properties
Types of Additional Insured Endorsements
Specific Additional Insured
Names a specific entity on your policy. Used when you have a single AI requirement — one landlord, one client. Requires a policy change each time a new AI is needed.
Blanket Additional Insured
Automatically extends AI status to any person or organization you're required to add by written contract. This is the best option for most businessesbecause:
- No individual endorsement needed per AI
- Faster certificate issuance
- Usually included at no extra charge
- Covers all contractual AI requirements automatically
Additional Insured — Ongoing Operations
Covers the AI while your work is actively happening. Once you leave the project or the contract ends, coverage for the AI ends.
Additional Insured — Completed Operations
Extends coverage to the AI for claims arising after your work is finished. This is critical for construction — if a building defect surfaces two years after completion, the AI (property owner) is still protected under your policy.
Additional Insured vs. Certificate Holder
These are NOT the same thing:
- Certificate holder: Simply receives a certificate of insurance as proof that you're covered. They have no coverage rights under your policy.
- Additional insured: Actually gains coverage rights under your policy for claims arising from your operations.
Many businesses confuse these terms. If a contract says "name us as additional insured," a certificate of insurance alone is NOT sufficient — you need the actual AI endorsement on your policy.
Waiver of Subrogation
Often requested alongside AI status, a waiver of subrogation prevents your insurance carrier from suing the additional insured to recover claim payments. Example: if the AI's negligence contributed to a claim your carrier paid, the waiver prevents your carrier from going after the AI to recoup costs.
What to Watch For
- Limits erosion: AI claims use YOUR policy limits. A large AI claim reduces the coverage available for your own claims.
- Broad form requests: Some contracts request AI status that's broader than what standard endorsements provide. Review these carefully.
- Primary and non-contributory: This language means your policy pays first, before the AI's own insurance. Common in construction contracts.
- Ongoing + completed operations: Make sure the endorsement covers both if the contract requires it.
For Agents: Managing AI Requests
- Recommend blanket AI endorsements to clients who regularly face AI requirements
- Review contract insurance requirements before your client signs
- Ensure completed operations AI is included for construction and project-based work
- Educate clients on the difference between certificate holder and additional insured
- Document all AI requests and endorsements in the AMS for E&O protection