Insurance Defense and Coverage
Policy Anatomy
An additional insured is granted coverage under another party's policy, typically because a contract required it. General contractors are commonly added to subcontractor policies, and property owners to tenant policies.
The scope depends entirely on the endorsement form. Older forms covered liability arising out of the named insured's operations, while current forms limit coverage to liability caused in whole or in part by the named insured's acts or omissions and often cap coverage at the amount required by contract.
Alternative Names:
AI Endorsement, Additional Insured Endorsement
Why it Matters?
Additional insured tenders are the primary mechanism for shifting defense and indemnity in construction, premises, and transportation litigation. Whether a tender is accepted determines who funds the defense, how many carriers share the loss, and whether contractual indemnity litigation follows. Prompt tender and precise analysis of the endorsement edition are the two things that matter most.
Frequently Confused with
Related terms
Frequently asked questions
Does a certificate of insurance make someone an additional insured?
Is additional insured coverage primary?
