What is an Additional Insured?

As a business owner, you’ve probably been asked to add someone as an “additional insured” to your insurance policy.   The “additional insured” becomes just that under your insurance policy.  They are entitled to much of the same coverage and share the limits that you have procured for your own protection.

 

For example, General Contractors often require subcontractors to add the name of the General Contractor and the Owner of the project to the subcontractor’s policies.   If the General Contractor or the Owner are sued due to accidents arising out of the work of the subcontractor, the subcontractor’s insurance policy will protect the General Contractor and Owner.  You are technically sharing your policy limits with the General Contractor and Owner.   The requirement that one party provide coverage to the other party as an additional insured lessens the financial risk of loss to the party requesting the coverage.

 

Before you sign a contract, review your policy and identify how your insurance company handles additional insureds or contact our office for guidance about how to amend your policy to add an additional insured.    There may be an additional premium charge to add this coverage to your policy.

 

Please contact your Rue Insurance service representative at 800-272-4RUE should you have any questions.


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Rue Insurance

In business and in life, sometimes you just can't see it coming. That's why there's Rue Insurance. Not just insurance brokers: we are your insurance advisors. We've been helping our clients portect their assets and improve their bottom lines for nearly 100 years. Be Ready With Rue is our commitment to help you identify risks and customize a strategy to reduce or eliminate your potential costs. Don't let a disaster ruin you financially, Be Ready With Rue.

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