What is an additional insured?
Homeowners: An additional insured is someone that does not live in your home, but has an underlying interest in the property. A mortgagee or additional insured could be a banking institution or mortgage company; however, a separated or former spouse may be listed on the homeowners because they still have a financial interest in the house. Therefore, they are no longer a named insured but considered an additional insured. Auto: An additional insured is someone that has an interest in your vehicle. In most cases this would be a banking institution because you have used your vehicle as collateral for a loan. Business: A business that is not automatically included as an insured under the policy of another, but for whom the named insured’s policy provides a certain degree of protection. An endorsement is typically required to effect additional insured status. The named insured’s impetus for providing additional insured status to others may be a desire to protect the other party in order to
The University requires that it be named as “additional insured” on Certificates of Insurance. As an additional insured the University has coverage under the contractor’s, vendor’s, facility user’s, or caterer’s insurance policy for claims and suits alleging negligent acts or omissions by the contractor, facility user, etc. arising out of the contract. The Additional Insured coverage provides that the University will have legal representation for a claim or lawsuit in which the University is named, but is not negligent. Without this coverage, the University would have to provide its own defense in the event it was named in a suit that arose out of the negligent acts or omissions of the contractor, consultant, vendor, or facility user with whom it was doing business. This protection is very important as, in many cases, defense costs incurred by litigation exceed the cost of settlements and judgments.
An additional insured is a facility that the insured is indemnifying from his or her actions, when the actions are rendered on behalf of the facility. Example: a psychologist is an independent contractor for a small hospital. The hospital asks the psychologist to list the hospital as an additional insured on the psychologist’s malpractice policy. The psychologist’s policy would then protect the hospital in case the psychologist was negligent in the treatment of a patient referred by the hospital.
That’s somebody that’s not you who needs to be included in the policy. It’s actually a really complicated question, but that’s the simple answer. Sometimes venues or organizations ask to be included as additional insured and that’s not a problem at all. Our policies come with unlimited additional insureds, and you can request certificates right through the “My liability insurance” portion of the website.
An Additional Insured, such as a gym, school or other facility, provides insurance coverage for that gym, school or other facility for YOUR activities. If the gym, school or other facility is named as a defendant in an action involving your training activities, the insurance will provide defense and/or indemnification.
