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What is an Additional Insured?

By July 28, 2016February 19th, 2021Business Insurance, Contractors, General Liability

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.

Scott Harrigan

About Scott Harrigan

Scott started his career in insurance in 1988 and joined Rue Insurance in 2004 as a Marketing Specialist focusing on creating effective risk financing and risk transfer programs for companies and non-profit organizations. In addition to this he is a member of the Rue Insurance educational team that provides ongoing professional development in critical insurance concepts and programs to Rue employees. About Scott | More Posts by Scott