Beware What Does Additional Insured Mean On An Insurance Policy References

However, It Is Always Prudent To Scrutinize The Contracts.

The additional insured has the same coverage and is on the same policy as the named insured. With an additional insured underwriting, the additional insured will, at that point, be secured under the named insured’s coverage and can document a claim if sued. In an insurance policy, an additional insured refers to anyone other than the policyholder who is covered by an insurance policy.

Additional Insureds Get Two Valuable Kinds Of Protection:

Additional insured status is given by adding an endorsement to the policy. Additional insureds are often included under general liability, commercial property or commercial auto policies. The coverage provided limits potential claims, only reaching the areas of rightful risk.

Professional Liability Insurance Helps Protect Your Business From Lawsuits That Claim There Were Mistakes In.

Many businesses cover other parties under their liability policies to fulfill contractual obligations. What essentially happens is that the additional insured status extends. Let's look at a couple of practical examples.

•If There Is Nothing In The Policy That Limits An Additional Insured’s Coverage To The Coverage Provided To The Named

The trucker’s insurance company cannot seek to recover from an “insured”, doing so violates the purpose of insurance, and as stated above, an additional insured is an “insured”. Additional insureds are usually covered via endorsements. An additional insured is a party added to a liability policy at the request of the named insured.

This Means That This Type Of Policy Only Covers Claims That Are A Direct Cause Of The Work Or Operations Performed By The Primary Business.

Coverage might be limited to a single event or it could last for the policy’s lifetime. It adds an insured person or entity to your policy. The term additional insured means a person or entity that is covered under another party's insurance policy.