Additional Insured, Explained
An additional insured is a person or business added to your liability policy so they share in its protection — usually because a contract requires it. A general contractor, landlord, or client asks to be added so your policy helps defend and pay if something goes wrong on your work.
Why contracts require it
The party hiring you wants your insurance — not just theirs — to respond to claims arising from your work. Adding them as an additional insured does that. It's standard in construction, leases, and vendor agreements.
Ongoing vs. completed operations
"Ongoing operations" additional insured covers them while the work is in progress; "completed operations" extends it to claims after the job is done. Construction contracts often require both — read the requirement carefully.
The usual combination
Additional insured is frequently paired with primary and noncontributory wording (your policy pays first) and a waiver of subrogation (your insurer won't pursue them). Together these shift risk to your policy.
Additional insured vs. certificate holder
A certificate holder only receives proof that coverage exists. An additional insured is actually added to the policy and shares its protection. Contracts often require both.
Need coverage that meets a contract's additional-insured requirements?
FAQ
What's the difference between an additional insured and a certificate holder?
A certificate holder just receives proof of coverage; an additional insured is added to the policy and shares its protection. Contracts often require both.
Does adding an additional insured cost me more?
Sometimes there's a small charge or it's included, depending on the carrier and whether completed-operations coverage is required. Your advisor can confirm.
What is completed-operations additional insured?
It extends additional-insured protection to claims that arise after your work is finished, which construction contracts frequently require.
General information from Focus West Insurance Solutions (CA Lic. #0M32679), not coverage advice; terms vary by carrier and state. Related: certificate of insurance · contractor insurance · additional insured in the glossary.