Additional insured
What is an additional insured?
Picture loaning a friend your umbrella on a stormy day: they stay dry, and you still own the umbrella. An additional insured works the same way. An additional insured is a person or organization added to someone else’s insurance policy, usually with a quick form called an endorsement so they’re sheltered from certain liabilities tied to the policyholder’s actions.
This endorsement only kicks in when a claim stems from the named insured’s work, property or slip‑ups.
How does an additional insured endorsement work?
Think of the endorsement as a backstage pass. Once added, the extra party steps behind the velvet rope of the policy holder’s coverage. If a covered claim stems from the policyholder’s property, work or negligence, the additional insured can tap the same legal defense and payouts—up to the policy limits. Most endorsements spell out the exact scenarios that apply, so reading the fine print (or calling your VIU by HUB Advisor) is critical.
Why would someone ask to be added?
Before signing leases, service agreements or even contracts, the other side often wants proof they won’t be left holding the bag if you slip up. Common requests include:
- Landlords – Stay protected if a tenant’s mishap damages the building.
- Mortgage lenders or banks – Make sure the property they're financing is protected in case of major losses.
- Auto lenders – Avoid financial risk if a borrower totals a vehicle that’s still under loan.
When both sides share the same umbrella, business can move forward with fewer what‑ifs.
Benefits of adding an additional insured
Adding an additional insured to a policy can be a win-win for everyone involved. While the legal protections are important, the upsides go well beyond that. From stronger partnerships to smoother operations, this small endorsement can have a big ripple effect. Here’s how the benefits often show up:
- Extended protection – Broader liability coverage without buying a whole new policy.
- Risk hand‑off – Sends covered claims back under the named insured’s umbrella, letting partners breathe easier.
- Stronger relationships – Demonstrates you’re willing to shoulder responsibility together, which can seal deals or leases.
A well‑written endorsement can even keep your own premiums steady by preventing small claims from hitting your history.
Where you’ll see these endorsements most
So where does this come up in real life? You’re most likely to bump into additional insured language when someone else wants to be protected from liability that could stem from your actions or vice versa. These endorsements pop up in a few common places:
- Personal liability or renter policies – Landlords often require it.
- General liability – Think neighborhood contractors or handypeople.
- Auto liability – If you lend a vehicle to a family member long‑term.
Any time your activities could splash liability onto someone else, an endorsement is a simple fix.
How to add someone
Adding an additional insured is usually a straightforward process, but getting the details right matters. Before you start, make sure you have all the required information and understand any special wording your agreement calls for. Follow these steps to add someone quickly and correctly:
- Call your licensed VIU by HUB Advisor.
- Share the full legal name and relationship of the additional party.
- Confirm whether a standard form works or if the contract calls for special wording.
- Keep the filed endorsement with your policy docs.
Removing an additional insured
When the lease is up or the project wraps up, follow the same steps in reverse.
Removing an endorsement keeps your liability and premiums from creeping higher than necessary.
Additional insured vs. named insured
The named insured owns the policy, pays the premiums, and can tweak coverage at will. An additional insured is a guest at the party: they benefit from certain protections but can’t rearrange the furniture. Knowing which hat you wear prevents costly mix‑ups when a claim hits.
Does the premium always change?
Many personal policies include a handful of additional insureds at little to no charge; landlords are a classic example. If the endorsement widens the insurance company’s risk in a big way, expect a bump. A quick chat with your advisor clears up surprises.
Must‑know tips for additional insureds
Being added as an additional insured can give you peace of mind, but it doesn't mean you're fully shielded from every risk. This kind of coverage is limited, and it only kicks in under certain conditions. If you are relying on someone else's policy to protect you, you need to understand exactly what you're getting (and what you're not). Here are a few key things to know:
- Coverage sticks only to activities tied to the named insured.
- Separate lawsuits can still land on your doorstep.
- Your protection vanishes if the main policy lapses.
- Premiums aren’t your responsibility, but reading the endorsement definitely is.
FAQ
What’s the difference between a primary insured and an additional insured?
The primary (named) insured owns the policy and steers any changes. An additional insured is simply granted limited, situation‑specific protection through an endorsement and cannot alter the policy terms.
Can I add multiple additional insureds to one policy?
Absolutely. Most insurance companies let you list several additional insureds, think multiple landlords or a handful of subcontractors on a single endorsement. Just remember each name must match the legal entity exactly, and your carrier may cap the total or charge a small fee once the list grows.
How long does additional insured status last?
Coverage sticks around only for the timeframe or project spelled out in your contract (or until you remove the endorsement). Once the lease ends or the job wraps, protection fades so circle back to your advisor if you renew or start a new agreement.