Streetsmart insurance Blog
What Is an Additional Insured?
An additional insured is an individual or business who is treated as an insured party under the purchaser’s policy. As a contractor, the additional insured endorsement allows you to add clients to your commercial general liability insurance policy.
What Does An Additional Ensured Endorsement Do?
As an additional insured, your client will be protected against liability if they are sued for damage or misconduct relating to your work. You will also be protected because your insurance company will pay for your client’s legal bills, saving you and your contracting business the responsibility of paying for their defense.
Imagine that Bob, a housing developer, hired you to complete the roof for his new apartment building. In the course of construction, a small portion of the roof fell and hit a real estate agent who was viewing the property. The real estate agent then sued you and your client for her medical payments.
The additional insured endorsement would protect your client by providing coverage to pay for her medical bills and his legal expenses. It would also protect you from an additional lawsuit from your client for the damage caused by your work.
Types Of Additional Insured Endorsements
Ongoing Work – Protects contractors and their clients from claims that arise due to continuing work, such as ongoing construction.
Completed Work – Protects contractors and their clients from claims that arise after the job has been finished, such as damage to client property and injuries incurred due to poor craftsmanship.
Blanket Endorsement – Protects contractors and their clients from potential claims without adding the name of each client to the contractor’s insurance policy. This will normally be requested if your client asks for an additional insured endorsement in a written contract, which is why a contract of employment is required for this type of endorsement.
Blanket Endorsement For Upstream Parties – Follows the same model as a traditional blanket endorsement, but requires subcontractors to also sign a written contract so that the client will be protected from any claims that arise from a subcontractor’s work or misconduct.
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