noun
additional insured
In plain English
Someone added onto your policy by endorsement so they get the benefit of your coverage too.
Most contracts (with a GC, a landlord, a vendor) require you to name them as an additional insured on your GL. It means if they get sued because of something you did, your insurance defends them too.
What it covers
The named party gets coverage under your policy, but only for liability arising out of your work or premises — not their own.
What it does not cover
It is NOT a named insured. Additional insureds get coverage as a courtesy under the endorsement; named insureds are full parties to the policy with all rights to it.
Where it trips people up
The endorsement form number matters. CG 20 10 (ongoing) doesn't include completed work; CG 20 37 (completed ops) does. GCs sometimes ask for one and mean both.
The technical version
A person or entity added to a policy by endorsement, extending coverage for liability arising out of the named insured's operations or premises, subject to the endorsement's wording.
Worked example
A subcontractor doing tile work in a hotel renovation.
- Contract
- GC requires sub to add GC as additional insured
- Tile install
- Sub leaves a wet tile uncovered
- Slip-and-fall
- Hotel guest sues both sub AND general contractor
- Defense
- Sub's GL defends both parties
The result. the GC's own GL never gets touched. The sub's policy covers the GC's defense and any judgment up to the limit. That's what additional-insured status actually buys.