However, To Be Added As An Ai, You May Need A Direct Contractual Relationship With The Named Insured.
As such, it’s important to be aware of the differences in additional. With an additional insured endorsement, these people are protected under the original named insurer’s policy and can make a claim if needed, but they aren’t the policyholder. What essentially happens is that the additional insured status extends.
More Specifically, For Them, Only Incidents That Are Related To The Primary Policy Holder’s Work And Responsibilities Are Covered.
An additional insured is a company or person that can receive insurance coverage under another company’s business insurance policy. Schedule name of person or organization: The additional insured has the same coverage and is on the same policy as the named insured.
What Is An Additional Insured?
An additional insured is a party other than the policyholder who has an interest in whatever is being covered. Additional insureds are therefore not obligated to pay premiums and typically do. This endorsement modifies insurance provided under the following:
An Additional Insured (Ai) Is A Person Or Organization Who Is Insured Under The Insurance Policy Of Another Party, At The Request Of That Other Party (The “Named Insured”).
Nothing else, and the named insured is responsible for the premium payment not the additional insured. Additional insured, usually refers to a person or entity added to the policy by an endorsement. In general, endorsements will provide coverage to the people or businesses named on them only for claims arising out of the acts or omissions of the primary insureds.
A Named Insured's Impetus For Providing Additional Insured Status To Others May Be A Desire To Protect The Other Party Because Of A Close.
Many businesses cover other parties under their liability policies to fulfill contractual obligations. This is unfortunate sometimes as some insurance companies will charge you an extra premium to add the additional insured to your policy, so be sure to check with your agent. The term additional insured means a person or entity that is covered under another party's insurance policy.