An additional insured clause obligates a party to obtain coverage naming the counterparty as an insured, often specifying that the coverage be primary and non-contributory and stating required limits.
The contractual obligation is distinct from the actual endorsement, and the scope of coverage ultimately depends on the endorsement form issued.
Alternative Names:
AI Requirement, Insurance Procurement Clause
Why it Matters?
The contractual promise and the coverage delivered frequently diverge, and that gap is where litigation occurs. A contract may require primary non-contributory coverage for the indemnitee's own negligence while the endorsement actually issued covers only liability caused by the named insured. Verifying the endorsement rather than accepting a certificate of insurance is the practical control, and failure to procure the required coverage is itself a breach claim.
Frequently Confused with
Related terms
Frequently asked questions
Is a certificate of insurance sufficient proof?
What if the required coverage was never obtained?
